Why Buying Membrana Token Is A Smart Move
Everett Rogers’ Diffusion of Innovations Theory describes a detailed life cycle of every technological breakthrough: proposed by innovators, it is picked up by early adopters, after that early majority joins and then, gradually, it is followed by late majority and finally laggards.
Simon Sinek who is one of the brightest motivational orators and business consultants of today explains that the big idea and revolutionary product never aims to focus on “What?” question — its main task is to explain clearly “Why?”. Why this new technology matters? Why it has potential to change people’s life? Why it is capable of disrupting the industry it applies to?
In Membrana, we intend to have this answers.
For decades, asset management industry remained among the most conservative segments of the financial world. There is no question about a long line of technical improvements in reporting, custody methods, valuation procedures, index construction and transition of money. There were many changes in asset classes available, namely Milken’s junk bonds in 1980s, mortgage bonds in 1990s followed by CDS and CDO products later in early 2000s, Vanguard long run to popularize index investments and many more.
But the core idea remained unchanged: there is investor, investment manager and their agreement which, in the best case, is secured by some trusted third party. Everything else was, till this day, resolved within a framework of plain commercial legislation: creation and dissolution of funds, settlement of profits, charge of commission, accounting and so on.
Madoff Investment Securities was, by far, the biggest failure of this system. There were multiple reason why this could happen: greed, conspiracy of powerful investment houses, price manipulations and more. When the dust settled, everyone involved, from regulators to retail financial brokers, made multiple promises that the crash of this magnitude will not happen again. It is easy to believe that the industry operators became way more cautious and alert, yet the main weakness is still there. And it is the fundamental principle of the asset management system. And it needs to be changed.
We in Membrana blockchain project understand clearly that by transferring their assets to experienced traders, investors retain the possibility of obtaining exceedingly-high income in the cryptocurrency (or any other) market, while at the same time minimize the risks of significant loss common to inexperienced players. However, at the moment, there is no convenient and safe tool on the market for the conclusion of contracts between investors and traders for the trust management of cryptocurrencies and other assets. Regardless, such contracts are active in words, forums, and chats, which leave the marketplace ripe for fraudulent acts, such as, when traders disappear with investors’ money.
Our answer to that risk is decentralization and transparency. The Membrana Blockchain Platform is intended to bring investors and traders together for concluding mutually beneficial blockchain-protected contracts for the trust management of cryptocurrency assets. Membrana provides investors and traders with a transparent, decentralized and secure system, which controls the process of concluding and executing a contract up to the point of revenue gained by both parties.
Our solution rests on four pillars:
For the purpose of transfer of an investor’s exchange account to a trader in trust management, an API key provided by the exchange is used. The API key is not transferred to the trader, but stored on Membrana’s platform in a secure database. The trader trades on an exchange via the Membrana single trading terminal. Consequently, the trader does not have access to the investor’s assets. All investors’ funds remain on their exchange account, and are not transferred to the trader. Membrana also maintains the restrictions set at the contracting stage: stop loss, time period for trading by the API key, etc.
To conclude the transaction between investors and traders an Ethereum Smart Contract is used. Traders’ consideration is reserved in a Smart Contract, in advance, and it is automatically paid upon reaching the target profit set in a percent of the amount transferred in trust management, or upon expiration of the Smart Contract term.
All contracts concluded by traders via the Membrana blockchain platform will be saved to the database. This information is further used to calculate traders’ success using indicators, such as ROI, rating, etc. These indicators will be provided to investors, giving them a greater ability to select suitable traders.
The Membrana blockchain platform uses blockchain to validate traders’ details. To do this, the hash sum of traders’ transactions for the day is saved in the blockchain Ethereum Smart Contract. The block, where the hash sum is saved, is dated and cannot be counterfeited; therefore, the validity of all data on traders’ transactions of exchange is confirmed by their hash sum in the blockchain — in the block dated with the respective date of transaction. Thus, it is impossible to save only profitable transactions in the database and their hash sum externally as far as at the moment of saving, because it is not known which transactions are profitable.
The Membrana blockchain platform allows the investor to transfer, to trader, only part of his funds in the exchange account, as is stated in the contract terms. The remaining funds remain under the investor’s full control and can be used for independent trading, transfer of these funds to another trader, or withdrawal from an exchange account.
Trade in cryptocurrencies is actually carried out from one exchange account by different traders or by the investor himself. In spite of this, the Membrana blockchain platform provides isolated and independent trading within the amounts transferred to trust management for each trader and the investor himself.
At the time of the conclusion of the contract, the investor determines the amount transferred from trust management in the accounting currency to be used.
Currently, cryptocurrency market has a total market value of slightly below $200 billion. This market has emerged over the last three years and it has increased in value by roughly 100x since inception in 2014–2015. Yet, even after this impressive growth it is dwarfed by the global stock market which has a size of approximately $50 trillion.
Observes from all over the world agree that there are good chances that, once proper legal regulations are in place, the digital market will start taking bigger market share quickly expanding from its current 0.4% of the global wealth to tens of percent. This will be happening primarily because of the tokenization tools and techniques that are expected to enable real estate, industrial and commodity assets to be wrapped in digital cover, effectively enabling access to all assets for all investors on the globe.
This new reality will call for new infrastructure. Old school depositary and custody services won’t be able to promptly adjust to new scale of operations which will be fully global and will require faster and more transparent operation. Transitioning your stocks from the exchange to ADR programme agent for three days? Procedures like that will become history.
Neither will they posses the most needed attribute of this decentralized world: independence and risk elimination. Despite the multi layer insurance coverages, reinsurance agreements and banking norms, there always will be general risk that is associated with them and third party.
We, Membrana blockchain project, are certain that the blooming decentralized financial world will be using blockchain based mechanisms allowing to avoid third party risks and see clearly in every given moment what is happening with the funds, where are they located and what are those funds. No question about conversion rates, actual buying and selling prices, transaction fees, special commissions and other foggy elements.
Membrana blockchain project is here to present this option.
By investing in Membrana tokens you can join the revolutionary project on its early steps. And, in Rogers’ definition, become early supported rather laggards. Early buyers will enjoy significant bonuses and will be able to capture more token price growth than late investors.
We believe in community wisdom and see our investors as important contributors to the platform’s development and improvement. You will be first to try new options and features, speak with the project’s team to find more about further evolution of Membrana. But most importantly, you will be there to disrupt the sector that remained barely changed for almost a century — and benefit from it!
Don’t miss the opportunity to take part in the next generation market leader today. Find out more about the project at Membrana’s web site. Get detailed information about the platform from its white paper; get in touch with us to know more via email or join Membrana community.
We don’t want to tear any buildings apart, we are building a new better home for asset managers and clients. Join us in this work and Membrana journey!
Stay with us!
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Originally published at medium.com on November 19, 2018.
