Blockchain is set to cut a swathe through the investment world – where issues relating to data, privacy and security intersect, says the Knight Frank 2017 Wealth Report.
At its core, Blockchain is a distributed ledger whose architecture offers a secure and seemingly unhackable infrastructure that will give UHNWIs the ability to accelerate the deployment and monitoring of their global capital across portfolios.
With the rapid growth in the world’s high worth individuals, the demand for secrecy and privacy in the management of wealth is rising and nothing beats Blockchain in the secure tracking of wealth flow.
Currently, every transaction requires validation of identity by a third party, adding friction to the process. By creating a permanent and unalterable record of each transaction, Blockchain eliminates the need for validation, reducing
that friction and leading to greater control and trust.
Ultimately, easier transactions should prompt a rise in volumes, spurring additional global flows of wealth, says the Knight Frank 2107 Wealth Report.
As the Common Reporting Standard (CRS) continues to gain traction across global tax regimes, there is an opportunity for investors to get ahead of the curve and influence the way governments share information in the future, encouraging the exchange of accurate, transparent and timely data via a platform built on Blockchain.
Main risk for Blockchain
“In our view, the main risk for Blockchain is not that someone will “hack” into this aggregation of data and assets, but that at some point a government might find such a concentration of information an irresistible target for control,” said David Friedman CEO, LifeChain.
However, this is a geopolitical risk rather than a technology issue.The potential offered by Blockchain for accelerating global capital flows far outweighs the potential risks