Essay On Blockchain Technology

924 Words4 Pages
Blockchain technology innovation is proliferating in the hedge fund industry. Blockchain technology plays a primary role in front office and investment functions, in the securing of crypto assets, but also in private investment fund managers’ attempts to satisfy the growth expectations of clients. Although the use of blockchain technology in private investment fund strategies is still in its infancy, as it evolves and accelerates, the associated innovation benefits promise lasting change for the industry. Hedge fund managers have started to embrace the use of blockchain technology to facilitate investment and process optimization. Several private investment funds have spearheaded the implementation of blockchain technology and smart…show more content…
Impact of Blockchain Use on Private Investment Fund Industry Blockchain technology has the potential to restructure large parts of the private investment fund and banking industry. Most legacy systems at private investment funds and banks are much more expensive than blockchain technologies, are subject to human error, and take much more time. Banks charged $1.7 trillion in processing fees in 2014. Because blockchain technology is transparent, verifiable, self-authenticating, and self-enforcing, financial transactions can be executed instantaneously at near zero transaction costs, increasing the efficiency for business and individuals exponentially. These factors in addition to blockchain technology’s disintermediation through technology driven democratized trust, precipitated the financial industry’s substantial investments into blockchain technologies in fear of becoming obsolete. Supporting data analysis: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2998033 SKRAPS’s ECO-SYSTEM & PORTFOLIO STRATEGY Today, hedge funds are one of the most popular subjects in the media financial, and even in everything related to the economy in general. These funds, mysterious in the eyes of the public, politicians, and many investors, are often decried, without the accusations against them being verified. This phenomenon reflects a real misunderstanding of the way in which hedge funds and their real impact on the economy. It is difficult to

More about Essay On Blockchain Technology

Get Access