Buying Bitcoin? Hedge Funds Will Use Blockchain, Too
Imagine a future where humans play a minimal role in setting up, regulating and reporting regulatory requirements of investment funds, where the process is underpinned by reliable, cutting-edge technology.It's a future that's not as far away as you might think, and it's not being built by an existing bank or institution that you will have heard of.Instead, it is being built by a new group of technical pioneers who were early to blockchain and understood what it meant. These entrepreneurs are now working on a full toolkit that is fast becoming available.Already, there are distinct innovations emerging across what can best be described as the emerging investment management chain.Protocols are being built that allow you to:Bring data securely to the blockchain (e.g. Oraclize)Exchange assets in a secure, peer-to-peer way (decentralized or hybrid exchanges like 0x, Kyber, Oasisdex, etc)Issue all sorts of digital assets on-chain (protocol tokens, ETFs, regulated equities, derivatives, etc)Set up and regulate your investment funds.Yet, these projects are an example of a crucial point – if all these projects were working in isolation, the concept probably wouldn't pose a credible alternative to the existing financial system.However, the exact opposite seems to be true – bridges and highways are being built through network effects, securing an ecosystem which collectively gets stronger and stronger by the day.