Blockchain has always been talked about in the world of cryptographic assets, but its meaning goes much further as it has tremendous potential in the investment spectrum. But you always have to start from the beginning, and identify what this issue has been on everyone’s lips for the last few years. Ralph Elder, the Iberian CEO of BNY Mellon, presented at a seminar the benefits of the blockchain for the future and the investment opportunities it could create in the next decade. So to begin with, and in general, blockchain is a database that provides users or “network participants” with the ability to securely transfer and record information without the need for centralized or manual merger.

This innovative capability can provide some unique ways to reduce costs, eliminate inefficiencies, and reduce fraudulent activity. "The technology may be better known in the Bitcoin market for its supporting role, but blockchain technology is already used in many sectors, such as financial services, healthcare, supply chain management and food security, and other uses are being tested in many companies." , says Elder.

Anything that requires a basic brochure can, in theory, be supported or supported by blockchain technology. “The global financial system relies on third parties to facilitate the exchange, settlement and service of assets, so this system established by the blockchain can disrupt this by providing a unique way to avoid the inefficiencies and potential opportunities created by intermediation,” he commented.
“Blockchain technology can be as revolutionary as the Internet in its day, which is why the BNY Innovation Blockchain Fund is a great alternative,” he says. Digital asset companies take advantage of the revenue and cost savings that blockchain technology offers and can be more easily defined as integrated software and hardware that allows companies to engage in independent activities in a standard format. 

Three pillars that create great opportunities

To understand the impact of this technology, he explained, it must be defined in advance. "The blockchain allows for agreed and decentralized verification (so it's impossible to hack, it's immutable and secure because it provides a registry with very strong digital security features," he explains. "We have only one active management of this issue on the market," Elder said. managers have identified three main investment pillars, the first of which is the financial section, which includes the cryptocurrency ecosystem, but much more than that, as well as stock exchanges or regional banks that provide real-time transaction services in dollars.

“The second part is what we call the corporate blockchain: shipping, supermarkets, airports, etc., so that sectors that are adapting their business models to the blockchain can have a competitive advantage,” he noted. "An example is a well-known coffee shop in the United States that started offering grain to its customers directly in a coffee cup. So the company created a QR using blockchain technology to track where the coffee bean came from for later consumption (farm, farmer, transportation, etc.). ) that clearly showed traceability, ”he describes.

“And third, tokenization and its future beyond art: real estate, gaming rights, monitoring customer loyalty, and so on. There are three main pillars but within them there are multiple options. This technology allows for tremendous growth in areas such as health, where the traceability of medical records will be easier, or even in the voting system, in the follow-up of criminals or in personal identity, ”he adds.

The future potential of this technology is estimated to involve an investment of $ 37 billion by 2030. In fact, it is estimated that 10% of the world’s wealth is managed by blockchain technology. “The fund is located in capital markets, technology services, banking, investment funds, software, semiconductors, interactive media and services and many other sectors,” Elder concludes.