Technology experts are very excited, and there has been some serious investment during 2018, so if you are a financial advisor that wants to keep up, then you will need to know the basics of blockchain technology.
In cryptocurrency language, a block is a record of new transactions, and each block is added to the chain, creating a blockchain.
It is a decentralized ledger system that tracks every change made, including who made the change. There is only one version, and it exists across multiple locations. It is accessible to all network members and records details of every transaction and alteration. So it is a decentralised, digital, public, tamper-proof record of transactions. It can be added to, but the previous information can’t be changed. Cryptography links the new block with all previous blocks, and any change to the earlier blocks would render all of the following data invalid.
Information on the blockchain is publicly available. It isn’t reliant on a single server, so all transactions are visible to everyone instantly. No single entity can take control of the information on the blockchain.
FT Adviser talks about the huge excitement around blockchain and its potential to revolutionise parts of the investment industry.
How Is It Important to Financial Advisers?
Not everyone is ready for new technology. There will be doubt and scepticism about the longevity of cryptocurrencies and their security, but others may not want to miss out on ‘the next big thing’.
Take the time to study the technology: find out about how it might impact the market and your clients. Position yourself ahead of the competition and make sure you benefit as early as possible. Look into software such as software for IFAs available through Intelliflo.
New technology is exciting, so be sure to benefit by paying close attention, looking into software for IFAs and keeping your eye out for opportunities.
– Turn to trusted sources to obtain the best information.
– Look into opportunities thoroughly so you can spot a real opportunity and avoid scams.
– Pay attention to current visionaries on the subject. You will learn from them.
– Remember that these markets are subject to boom/bust cycles, so don’t rush.
– Let your clients know that you are paying attention to the market.