Blockchain Technology Is Disrupting Traditional Modes Of Investments

Blockchain platforms such as Ethereum, Cardano, RippleNet, Monero, Dash, Litecoin, Stellar, Tron, etc. have their own on-platform Tokens that are fast emerging as alternative currencies.

From the deployment of Bitcoin Blockchain in 2008 during the financial crisis, a lot of negative perception surrounding the leading Crypto and other Altcoins has been paving way for adoption.

Consequently, a strong Crypto economy that is controlled by Crypto whales and retail traders who trade amongst themselves in Crypto exchanges is maturing as virtual currencies are increasingly being purchased for investments goals

Cryptos Are Challenging Mainstream Financial Products

In December 2018, Bitcoin rose to $20,075 at one point while most of the other Cryptos such as ETH also surged to unfathomable highs. However, a long period of a bearish run kicked in in much of 2018 which elicited debated among investors and other financial experts about the true/intrinsic value of Cryptocurrencies.

In 2019 however, the cycle has changed and the whole year has been bullish with most of the Cryptos gaining about 100% of their lowest points at the end of 2018. For this regard, both retail and institutional investors such as Goldman Sachs are delving into the Crypto business to benefit from the vast opportunities that the Digital economy is proffering.

DLT Is Modernizing Real Estate Transactions

The real estate industry is the most sought out investment option for private equity funds. Investors have relied on these third-party companies under the management for fund managers increasing their net wealth by directing their savings to properties with high net returns.

Blockchain in real estate transactions

In the real estate area, Blockchain technology can allow real estate developers to meet directly with investors to avoid fund managers and other investments firms. The platforms that DLT supports are trusted as they are controlled by protocols such as proof of authority, proof of work, and even proof of consent in addition to smart contracts that govern consensus in platforms.

Blockchain Technology Is Reducing Operational Cost For Enterprises

Oliver Wyman, a global financial services business, estimates that IT operations cost businesses up to $150 billion a year which is eventually passed to consumers in the form of fees.

Blockchain technology can enable businesses to bypass IT services providers and link up with their clients directly. This can reduce operational costs and make services less costly on the part of clients.

Additionally, Blockchain technology is transparent as data is recorded in immutable records. Hence, in case there are business charges that are passed on to consumers, all the parties can clearly see these costs on a public ecosystem.

Distributed Networks Are Eliminating Fraud In The Investments Sector

As per a Forbes report, Distributed Ledger Technology systems store data in records that are secured on Blocks that make up the whole Blockchain. These records of contracts are immutable and the proof of trade is verifiable, and accessible in a permission-less ecosystem.

This technology, therefore, can reduce fraud and other illegal activities that are prevalent in the secretive and centralized investments sector. At this point, it is being addressed through compliance where Cryptocurrency investments platforms are strict on KYC and AML compliance.