Essay On Blockchain Technology

This report also assumes that technologies such as AI and blockchain will deliver strong results, thus bringing a lot of disruption and competition in financial services. While these two technologies are making fast progress, they are still nascent and have yet to deliver most of their promises.

The last twenty years the financial services industry encountered significant regulatory problems. Equity crowdfunding introduces an innovative manner to raise capital and provide greater societal benefits. Fundraising has been going on for hundreds of years, and crowdfunding is transforming the approach to developing funds. In American history, our railroads relied on private individuals to pay for the infrastructure and development (Davies, 2014). Railroad companies employed crowdfunding and investors had the incentive to contribute. Projections illustrate the equity-based crowdfunding industry in the United States (U.S.) will experience rapid growth because of regulatory changes stemming from the Jumpstart Our Business

Currently, venture capital (VC) “funding trends for FinTech and the developments in large categories such as wealth management, blockchain, remittance tech, and insurance tech,” certainly do seem to be in the process of changing the face of payments and the contemporary relationship that the payments industry has with banks.

At the moment, the biggest opportunity for Blockchain lies within the financial services industry. Don Tapscott believes it will eventually revolutionize the way we spend money, but that is only the beginning. Blockchains have the potential to disrupt

Cryptocurrencies are “a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank” (google dictionary). Cryptocurrencies are very efficient, reduce risks, and simplify/accelerate legal relations. Furthermore, cryptocurrencies have more security than a normal bank and have no use of credit or debit cards. If a legal problem were to happen were a hacker where to hack into an account and steal someone's money, then the administrators can trace the money to the person who stole it and give them back their money. Cryptocurrencies as time goes on also become more and more valuable like for example $100 worth of bitcoins in 2010 is now worth 75

The topic of activist hedge funds, and the freedom in which they are allowed to target companies has risen a lot of concern amongst politicians, CEOs and the American public. Thus, the proposed rule has attracted a lot of attention and many comments, either for or against the rule.

Unfortunately, this year also marks the third straight year we report on a hedge fund industry mired in underperformance. However, the woes facing the hedge fund industry are compounded this year, reaching beyond performance, creeping into fund raising and industry expansion. This year is witness to net negative asset flows and actual reductions in the number of hedge fund firms, as firm closures

C. Billions of people (mainly in the third world) do not have access to banks and other financial services. Just like cell phone where able to address the lack of landlines that left people off the communication grid, the blockchain will be able to provide persons with the legitimacy needed to access the global market place.

Hedge fund professionals are, deserve it or not, the latest poster boys for the one percent.

Wall Street is going gaga for blockchain. According to a recent report from the World Economic Forum (WEF), over $1.4 bn has been invested in blockchain technology in the past three years, with over 90 firms coalescing into rival groups. The motivation is clear. Distributed ledger technology, commonly known as blockchain, and the underlying idea behind crypto-currency bitcoin, promises to revolutionize the infrastructure of modern finance and investment.

My experience at Villanova, both as a research fellow and a student was formative of my fascination with investments, hedge funds, and mutual funds. My original interest sparked while working with Dr. Velthuis and performing literature reviews on effects of corporate activism on stock prices, and size effects on hedge fund returns. Since then, classes in Portfolio Theory and

Hedge funds feature returns different from those of mutual funds. The different trading strategies and investment styles are amongst a few factors that explain the difference (Boyson, 2010). The institutional and individual investors create a common pool of funds and employ professional managers to manage the fund. Ideally the manager is compensated from two sets of fees: management fee and performance fee. They impose a management fee based on the size of the asset managed, usually at the rate between 1-2%. A performance fee will be imposed at the rate between 20-30% of the returns on the investments made (lecture notes).

Hedge funds are investment vehicles that explicitly pursue absolute returns on their underlying investments. Hedge Fund incorporate to any absolute return fund investing within the financial markets (stocks, bonds, commodities, currencies, derivatives, etc) and/or applying non-traditional portfolio management techniques including, but not restricted to, shorting, leveraging, arbitrage, swaps, etc. Hedge funds can invest in any number of strategies. Hedge fund managers typically invest money of their own in the fund they manage, which serves to align their interests with

Blockchain Technology supports a distributed ledger system and maintains a growing list of records that are confirmed by the participating people. In blockchain framework, each transaction is recorded in public ledger and stores the information of the transaction. In Current scenario, all the currency transactions between persons or entities are centralized and controlled by some other organizations (Interoperability team). Transferring money will needs bank and merchants who process the payments and they charge fee for each transaction. This is the common phenomenon in every domain and this complexity is simplified by Blockchain technology by creating decentralized environment where no interoperability team is required to control the

Bitcoin is a decentralized digital currency. More specifically it is a cryptocurrency, where the regulation of the generation of currency units and transfer verification are achieved using encryption techniques. It has no specific affiliation to a particular nation or government and has been described as “cash for the internet.” Bitcoin was created in 2009, and while its exact origin remains unknown, it is believed to have been developed by an unidentified individual or group of individuals operating under the alias of Satoshi Nakamoto. In fact, the relevancy of bitcoin’s