Blockchain in Asset Management and the Nest Egg Network
A platform for investors to pool their assets together with other peers around the world through smart contracts will enable entrepreneurs to raise capital from a group of people without having to rely on intermediaries or centralized organizations. In a previous article, we talked about the limitations of traditional asset management. In this second part of the article, we will go into how blockchain works in asset management.
All the transactions are published on an open ledger where everyone can see them! Imagine being able to track all your investments at once, that is what decentralization brings — transparency! A balance sheet generated by a blockchain protocol removes all doubt about its accuracy. The distributed nature of blockchains eliminates single points of failure, making it the biggest revolution in the coming decade.
Benefits to the fund manager:
- The cost-savings from decentralizing the operations of an asset management company’s operations may be passed onto the investor in the form of lower fees or higher returns on investments.
- Decentralized asset management companies can’t be shut down by one government or company and remain out of sight of regulatory issues.
- Given the growth and expansion of blockchain/crypto activities, it’s easier for fund managers in decentralized asset management companies to provide investment opportunities for investors.
- There are no restrictions on how much money you can invest in a company (unlike with traditional assets).
- Blockchain technology allows for more transparency than other investments like stocks and bonds because it records every transaction that takes place on the network.
- A fund manager can choose their investment strategy and invest in anything they want, rather than being limited by what the company allows them to do.
- Decentralized asset management companies offer more opportunities for growth because it is easier for new start-ups to get funding from investors.
- Companies can leverage new technologies and build their own platform.
Benefits to the investor:
- Investors can diversify their investments and hold multiple cryptocurrencies.
- It’s easier for investors to track the performance of assets they invest in due to transparency, making it easier for them to see how well they’re doing.
- It’s easier for investors with smaller amounts of money who previously couldn’t afford traditional asset management fees.
- There are lower barriers to entry than there are with traditional assets which reduces the minimum amount that an investor needs to start investing in decentralized assets.
- Attractive return on investment (ROI), especially when compared with traditional assets.
- Leveraging new technologies and building your own platform allows access to specific investment opportunities that weren’t available before investors started using this method like forex trading, ICOs, venture capitalism, etc.
- Investors can diversify their portfolios globally which increases their chances of success.
Opportunity in Decentralized asset management
For sure, it takes time to be adopted by the masses. The biggest hurdle for blockchain technology is to prove that it can handle an entire market of $70 trillion worth of assets without crashing! Last year’s bull run significantly increased the number of cryptocurrency transactions worldwide and showed that blockchain technology seemingly isn’t ready yet — transaction fees skyrocketed reaching up to $50 per transaction, leading to slower transaction times.
Current Status of Decentralized Funds
Having started in 2013, DeFi technology was initially adopted by smaller firms specializing in blockchain technology, but it also continues to expand into other domains. With an estimated 35% annual growth rate for this market, the traditional financial system needs a decentralized marketplace to keep up with the pace of change — or risk losing its dominant position. The decentralized finance industry is rapidly maturing. There are more than 50 projects in this space, including Stablecoins, lending protocols, and decentralized exchanges. The number of DeFi applications will likely increase by at least 100% every year until 2023.
Future growth of Decentralized AMC and Fund Management
This expansion should also contribute to an increased amount of assets managed via Decentralized fund services, It is therefore important for businesses to quickly understand the opportunities that lie ahead. With an estimated market value of $70 trillion (about 5 times more than traditional financial service managers can manage), decentralized finance promises both savings and security through its disintermediated structure, which essentially cuts out the middleman from any trade or agreement.
The Nest Egg is the Solution for Future
We are excited to announce Nest Egg, a revolutionary decentralized asset management network that provides a one-stop reference for non-custodial asset management activities. Our platform makes it easy for fund managers to connect with their investors and customize their custodial asset management experience. With our automated suite, users can rest assured that their funds are always in safe hands. Thanks to our paperless network, fund managers can now simply focus on what they do best: investing!
Are you familiar with the term “Nest Egg”?
The term comes from the idea that it has to be saved in a place (nest) where it will not be used, like an egg. If you’re familiar with common idioms then you probably already know that this “egg” is money.
A “nest egg” is a good thing; not only does it provide for your future but also shows discipline and determination. But don’t take our word for it — see what Investopedia says:
A “nest egg” is a significant sum of money or other assets that have been put aside or invested for a particular purpose. Such resources are frequently earmarked for longer-term objectives, such as retirement, homeownership, and education. The phrase “nest egg” has referred to savings since the late 17th century. It’s thought to have come from poultry farmers who used eggs — both real and fake — to encourage hens to lay more eggs, which gave them a higher income.
We’ll go through everything you need to do without a custodian so that you can handle your assets on your own terms. Our tailor-made custodial asset management experience ensures a smooth and streamlined investment process, while our state-of-the-art Avalanche protocol guarantees security and reliability. With Nest Egg, fund managers can communicate directly with their investors, and users retain ownership over their funds at all times. So come explore our platform and discover the freedom of non-custodial asset management!
Welcome to Nest Egg network, the decentralized asset management network that puts you in control of your money!
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