Design Principles of Blockchain Financial Markets

Chain Financial’s Blockchain Financial Markets Blogs, №1

For me, finance is a time machine that connects people and enables them to collaborate and exchange value and risk through time. This is one of the reasons I love finance. There is something a little magical about enabling people to better themselves, their families and their communities even when they have a poor start. Finance can enable us to achieve our dreams of future success. This is the magic of finance.

Traditional Financial Markets have delivered finance to many of us through a network of Trusted Intermediaries whose roles have been refined over hundreds of years. We should be grateful for the people who work at those Trusted Intermediaries. In a world where people love to hate banks, sometimes with good reason, it is important to remember that without them, fewer people would have been able to build their success.

Having said that, Blockchain Financial Markets now present an opportunity to deliver finance more efficiently and effectively than ever before and to people who have not previously had access to finance. If Blockchain Financial Markets can take the magic of finance to the next level, then we will be enabling more people to better themselves, their families and their communities.

Comparing Traditional Financial Markets and Blockchain Financial Markets

What is a Blockchain Financial Market? It is a financial market where the products are active programmable smart contracts that digitally interact with people, trusted central entities and other blockchain financial products. What does that mean? Blockchain Financial Markets are the key to helping more people to achieve their success — we can amplify the magic of finance and do more with less. The following table compares the key features of the Traditional and Blockchain Financial Markets.

Traditional Financial Markets Compared With Blockchain Financial Markets

What Should We Focus on When Building Blockchain Financial Markets?

At Chain Financial we are focused on building Blockchain Financial Markets, and there are three core design principles ever at the front of our minds:

(1) Building Responsible Products. Delivering finance more effectively and/or efficiently will be diminished if as a by-product we create other harms and/or costs for society. At Chain Financial we think Blockchain Financial Markets should be designed to proactively prevent the proceeds of crime and the financing of terrorism from entering our ecosystem. Blog #2 in this series dives into the detail on why responsibility needs to be a core feature of Blockchain Financial Markets and what Chain Financial’s vision is for making this happen.

(2) Fostering Collaboration in the New Landscape. For the foreseeable future, Blockchain Financial Markets cannot be delivered with technology alone. A collaboration is needed between our Trusted Intermediaries from today’s Traditional Financial Markets and the emerging technologies and the people who are creating them. Blog #3 in this series sets out the emerging landscape of Blockchain Financial Markets and drills into details about the valuable roles that our Trusted Intermediaries should consider incorporating into their strategies.

(3) Delivering Value to People. Technology is fascinating, but it should not be our goal. Blockchain Financial Markets must help us to do things better and/or to do better things. Blog # 4 in this series sets out a collection of practical examples of what the future may hold when money and financial instruments are programmable.

At Chain Financial we welcome your collaboration in building Blockchain Financial Markets. Get in touch with us and contribute your ideas and enthusiasm to magnifying the magic of finance.

About Dave Corbett

Dave Corbett is the CEO and Co-Founder of Chain Financial. Immediately prior to founding Chain Financial Dave Corbett was a banking & capital markets partner at PwC for more than nine years based in London and Auckland. Dave has nearly two decades of professional consulting experience servicing clients in key markets globally. He is an expert in financial instruments, capital markets, financial engineering and innovation.

Dave Corbett, CEO & Co-Founder of Chain Financial

About Chain Financial

Chain Financial is a global company based in New Zealand focused on enabling growth in Blockchain Financial Markets. Chain Financial is both building the technology to enable Blockchain Financial Markets and also collaborating with traditional and emerging entities around strategic opportunities in the emerging landscape. The founders of Chain Financial are Dave Corbett, Centrality and Intranel.

About Centrality

Centrality is a New Zealand based blockchain technology company that is a global leader in UNthinking the digital landscape for a decentralised world. They specialise in providing developers and businesses with the tools to create blockchain-based products and services. Aaron McDonald, Centrality’s CEO, is the 2018 EY Technology and Emerging Industries Entrepreneur of the Year.

About Intranel

Intranel is a New Zealand based emerging technology consulting and engineering business. Their business and development teams are experienced at accelerating technology delivery. They have completed significant assignments delivering technical growth, operations management and regulatory compliance for blockchain financial market entities.