What is BlockChain and how can it help the Asset Management industry?

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I’ve read some articles about Blockchain but can’t seem to fully comprehend it. #ELI5

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Posted by JCLQ-AM-MX
Asked on May 23, 2016 7:05 pm
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Blockchain is a distributed ledger. It provides a record for all transactions to be kept in a secure way but is open for viewing by anyone with access to the ‘blockchain’. Each transaction (or set of transactions) becomes a new block that integrates itself automatically into the chain. There is also smarts around how new ‘blocks’ or transactions are created where two authenticated parties, if agreeing, can automatically create a new record. It’s advantages over a traditional registry are reduced costs (you don’t need a registry to maintain and monitor transactions), speed of transactions (once created, you have immediate confirmation), and transparency. For Asset Management, anywhere that transactions take place and a registry is required could see a reduction in costs and less friction on transactions.
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Posted by Anonymous
Answered on May 29, 2016 7:54 pm
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I wrote an article for the Financial Brand last year that discussed blockchain. This excerpt may help you with context: Imagine your bank’s database goes offline just as you’re trying to transfer money to close on your mortgage? Most companies run their business using massive databases of customer and transactional data, but the challenges of managing security and uptime for systems based on aging technology can be costly and overwhelming. As these systems start to show their age, the fallout can have serious impacts on bank operations, as well as the customer experience. One emerging solution to securely managing transactions is the ‘blockchain’ – but what is it? A January 2015 article (http://radar.oreilly.com/2015/01/understanding-the-blockchain.html) explained the blockchain as, “Similar to a database, except the way you interact with that database is different, the blockchain transfers authority and trust to a decentralized virtual network and enables nodes to continuously and sequentially record transactions on a public ‘block’ creating a unique ‘chain’: the blockchain.” As an encrypted log of transactions you can store and share securely, a broader population can be granted visibility into transactions, while being blocked from seeing confidential details like account numbers or personal information.
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Posted by Steven Ramirez, Beyond the Arc
Answered on June 4, 2016 11:35 pm
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