Authorities are not the only ones who would benefit from switching global financial transactions to a common ledger, a Deutsche Bank analyst said.
Investors could also benefit from the blockchain technology
A typical example: Last month, the Dutch tax authority AFM involuntarily published records of short positions over the last four years. Among the valuable data showing investors betting against companies were numerous decisions by well-known investor George Soros.
If all this data had been stored on a blockchain, the data would not have been leaked. At least that’s how analyst Jamal Simpson explains it.
Simpson explained Bitcoin code to CoinDesk:
“That was a prime example … Distributed Ledger Technology or Blockchain Technology could have prevented this event.” The result of this Bitcoin code error (which just revealed scam according to onlinebetrug) was the publication of this information. This led to valuable insights into the investment strategies of many investors, including Soros.
Although the authorities were quick to erase the data, the damage had already been done. Among the numerous shorts were bets against several Dutch banks and the Renaissance Technologies Medallion Fund.
To shed light on the explosive nature of Soro’s investment decisions, Forbes magazine estimated that the US investor had net capital of $25.2 billion.
“I’m pretty sure that if anybody got wind of it,” Simpson said in a personal assessment, “then they’ll be able to determine who owns what, who owns what, and so they’d be able to take very strategic action against these positions.
The potential of the transition to Distributed Ledger Technology has been discussed many times by industry representatives. The term “regulatory nodes” is used here, which would provide government agencies with real-time data.
Simpson’s statements, however, also reflect some advantages of the technology for investors. The information would have been effectively prevented with a blockchain by intercepting it in the process.
Many institutions have their concerns when thinking about moving their financial transactions to a blockchain. But Simpson points out that the Soros leak points to a deeper problem in the current system.
More control of the Bitcoin code
Simpson quickly came to the realization that the required Bitcoin code publications, which are prescribed by law, can be automated. For example, last June Soros set up a Bitcoin code position against Deutsche Bank when Brexit was imminent.
In this case, Soros Investment was above the minimum disclosure limit. This is another example of how protection for investors and required publications can be programmed into self-executing contracts of blockchains.
Simpson told the skeptics of the finance blockchains:
“There is more than one way to secure information, even if you don’t use blockchain technology. But I’m just saying, if you want to use blockchain technology, then it’s possible. It’s technically possible to achieve more security.”