Since the birth of internet, blockchain technology is continuously transforming and bringing in new progressions in various industries. Initially used as a decentralising currency and is now finding its use in almost every commercial industry – from fintech, healthcare, pharmaceuticals, insurance, digital security, enterprise SaaS — it’s safe to say that blockchain is everywhere today.

Main Characteristics of Blockchain

More Power

This is the primary and a significant aspect of Blockchain. The most noteworthy factor about this Blockchain technology is that it raises the strength of the entire network. The many systems working coherently together offers greater power compared to a few of the devices when things are centralised.

Enhanced Safety

Blockchain technology has enhanced safety features as the organisation is not able to risk shutting down the system. Even the highest level of the financial system is subject to being hacked. Bitcoin, in contrary, had never been hacked. The motive is that the blockchain network is safeguarded by a number of computers known as nodes and these nodes verify the transaction on this network.

Stability

Making immutable ledgers is one of the primary worth of Blockchain. Any database which is centralised can potentially get hacked and they need trust in the third party to keep the database safe. Blockchain such as Bitcoin maintains its ledgers in an endless state of forwarding momentum.

Quicker Settlement

Traditional banking systems can be gradual, as they need a lot of settlement time that generally takes days to proceed. This is one of the primary intents why these banking institutions are required to upgrade their banking systems. We can solve this problem by the means of Blockchain as it promotes efficiency and security across board especially in money transfer related matters. This finally saves up a lot of time and money for these institutions and offer a better banking experience for the customers too.

Decentralised System

Decentralised technology provides you the potential to store your assets in a network that additional access by the means of the internet, an asset can be anything such as a contract, a document etc. Via this method, owner has direct control over his account by the means of a key which is connected to this account that provides the owner full authority to transfer his assets to anyone he wants.

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Effect of Fintech in Blockchain

Security: Its distributed consensus-based architecture removes single points of failure and lowers the requirement for data intermediaries like transfer agents, messaging system operators and incapable monopolistic services. Ethereum also permits execution of secure application code designed to be unforgeable against deception and malignant third parties — making it virtually not possible to hack or manipulate.

Transparency: It utilises mutualised standards, protocols, and shared procedures, behaving as a single shared source of truth for network participants.

Trust: It’s clear and immutable ledger makes it simple for various parties in a business network to collaborate, handle data, and lock in agreements.

Programmability: It promotes the creation and execution of smart contracts — inviolable, deterministic software which automates business logic – developing greater trust and efficiency.

Discretion: It offers market-leading tools for granular data privacy through every stage of the software stack, letting selective sharing of data in business networks. This significantly enhances transparency, trust and efficiency while keeping utmost discretion and privacy.

Superior Output: Its private and hybrid networks are engineered to support thousands of transactions per second and periodic rises in network activity.

Scalability: It sustains compatibility between private and public chains, providing each enterprise solution the global reach, enormous resilience, and great virtue of the main net.

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Role of Smart Contracts

Smart contracts are self-executing contracts having the terms and conditions of an agreement among peers. The terms and conditions of the agreement are drafted into code. The smart contract performs on the blockchain’s decentralised platform. The agreements assist the exchange of money, shares, property, or any asset. There are two common programming languages for writing smart contracts – Solidity and Serpent. Solidity is a superior-level programming language utilised for executing smart contracts on many blockchain platforms. It permits blockchain developers to test the program at runtime instead of compile-time.

Raising Funds for Blockchain with ICO

ICO is a comparatively new term in the market, however in a brief span of time, ICO has become a paramount issue of talks within the blockchain community. Gathering funds for your organisation via ICO is not the most straight-forward task to perform as it does have the many uncertainties / doubt from investors due to the many very unstructured securities involved, however with time, this seems to be the most ideal solution to raise money when blockchain start-ups are the one that needs to be fundraised. ICOs, also referred to as token sales, crowd sales, and initial public coin offerings, is the method of attaining funds for a fresh start-up where investors will receive a digital token. Digital token is frequently cryptocurrency that have FIAT money similar to crypto exchange.

Labuan IHC in Blockchain

The Blockchain technology is undoubtedly a very brilliant invention which creates the backbone of the fresh kind of use of the internet. It has created one of the most well-known digital currency, Bitcoin, which started as valueless in year 2008 and later taken the world by storm for gaining the value of USD 20,000 in December 2017. Ever since, many have started venturing and investing in this new innovation.

Significant Uses of Labuan Investment Holding Company (IHC)

• Invest in digital currency trading fund and Blockchain funds.
• Invest in start-ups of Blockchain technology companies.
• Invest in private equities such as Venture Capital companies that deal with Blockchain technology.
• Invest in intellectual patents of Blockchain technology.
• Invest in public listed Blockchain technology companies.

Read about Labuan Investment Holding Company

Get in touch with QX Trust’s Consultants who are Fintech experts at +60 3 9212 6940 or consultant@qx-trust.com to discuss further on how to setup an offshore structure for your blockchain / ICO business including ways to register your crypto business in Labuan. Subsequently, you may also gather more insights on fund raising for your new blockchain start-up too.