The last few years well deserve the name of ‘the golden age of cryptocurrency’, since the attraction it draws is beyond description. About ten years ago, when Satoshi Nakamoto created Bitcoin, digital currencies were interesting only to a small number of crypto evangelists. Later, after Bitcoin soared firstly to $6K, and later to $20K — the number of players in the crypto market drastically increased. Cryptocurrency has become a powerful instrument for trading, investing and accumulating wealth — it has become a new gold of the digital era.
Still, despite a large number of participants involved in cryptocurrency investment and trading, the market hasn’t yet matured. It resembles the Wild West, both with respect to the legislative framework and in regard to the mechanism of cryptocurrency asset management. There is no full-functioning, simple and secure infrastructure that allows to enter easily to the market and successfully operate in it. There is no well-established mechanism, that is as understandable and safe for investors, traders and investment funds as it is in the traditional financial system. It is true to say that until now everything has been done by trial and error in the crypto market. But the cost of this mistake can be tremendous.
A New Hope
All the players, big and small, understand that existing individual solutions are not suitable for such a complex world as the crypto industry, where there is a high level of risk and a large number of different strategies. They need something new — a solution that will unite all parties in one place and allow them to effectively carry out their functions. So, investors should be able to invest easily and seamlessly, traders — to transact on crypto exchanges, and funds — to manage the assets.
This dream can become true right in the very near future, thanks to the pioneers that confidently make their headway. One of them is a fintech company Zichain, which has been working on developing crypto infrastructure since the summer of 2017. According to its co-founder Khachatur Gukasyan, the company’s primary goal is to create a crypto asset management environment which will be clear and safe for both private and institutional investors. Being founded by experts in the traditional finance industry, Zichain combines an innovative high-tech approach to the asset management with already proven methodology and practices.
Unlike similar startups, Zichain doesn’t work on the development of a mono-product but creates an entire ecosystem where each element has its own features and functionality. All the products are interconnected and all together form a highly effective complex for users of all kinds — investors, traders and asset managers. The Zichain’s ecosystem consists of four core elements: CryptoEYE — a market data provider and crypto funds marketplace, crypto index funds, a licensed crypto-to-fiat broker called ZiChange and Blockchain Asset Management Platform or BAMP for short.
How do all these products interact with each other?
It looks like this. A manager creates his own fully-equipped fund, it takes just several minutes without any hassle. After that, the fund is listed on the CryptoEYE marketplace, which allows to attract customers quickly and cost-effectively. A fund manager can control his cryptocurrency portfolio and perform transactions on the largest trade terminal. Thanks to the platform automation, managers won’t need to calculate fees and watch out for them being paid — BAMP does it all itself.
At the moment, Zichain has already unveiled two of its five crypto funds to the limited number of investors, and also released CryptoEYE and BAMP as MVPs. ZiChange’s launch is scheduled for the near future.
A perfect combo
The fundamental principle of Zichain is ease of use. According to the team, its aim is to become a gateway to the crypto world and open it to a larger number of people — experienced market players, and beginners. The company sets to achieve this goal primarily with automated technologies and AI, which speeds up the whole process and simplifies the decision-making for a user. All operations will be done through one window which is the Zichain ecosystem.
Security of crypto assets is another serious issue that Zichain is aimed to solve. It’s not a secret that digital currencies are characterized by extreme risk, largely due to the anonymity of transactions. To ensure the safety of vulnerable crypto investments, the Zichain team has worked out a perfect solution — a combination of traditional financial instruments and blockchain technology.
From the conventional ‘fiat’ financial industry, Zichain ecosystem took a strict reporting system, while from the high-tech world — the distributed ledger technology. It allows to record all committed transactions on the network, without any possibility of changing this data post factum. In other words, wrong-minded fund managers won’t have a single chance to deceive the investor or take advantage of his assets and exploit them. Blockchain won’t allow this. BAMP uses a multisig technology based on three private keys. One key belongs to the investor, the second is in the hands of the manager, and the third is kept by the platform. To complete a transaction, at least 2 out of 3 signatures are needed, which guarantees full and complete security for the wallet and its funds.
Future seems bright
Despite the fact that the cryptocurrency market still seems immature and even wild, its bright future is round the corner. Zichain, being one of the forerunners in the field of cryptocurrency asset management, confidently moves forward and creates its own products. It makes the crypto industry stable, open and understandable for users.
The team is sure that efforts of its members will not be in vain: “Zichain will provide the basis for the further development of the world, and it will become friendlier and more transparent with our help”, concludes the founder of the company. And we believe it.