Embracing public blockchains will transform finance

There is no doubt that the internet has had a transformative influence on both business routines and everyday life, but there remains a noticeable gap: the digitalization of ownership. Processes for establishing proof of ownership still mainly reliant on physical channels, confined to private digital environments or use third trusted parties to verify ownership. Although certain setups may imply a semblance of digital ownership, the predominant structure often resembles “IOU” arrangements, along with closed and isolated ecosystems controlled by a single entity (e.g., eToro) or a limited number of selected entities (e.g., SWIFT).

In the financial realm, securities entail an intricate web of stakeholders, encompassing brokers, settlement houses and stock markets. Similarly, the evolution of money into digital formats has occurred through a variety of networks involving card schemes, money transmitters and financial technology firms such as PayPal, MoneyGram and Venmo.