The concept of a blockchain was introduced in 2008 in a paper entitled “Bitcoin: A Peer-to-Peer Electronic Cash System”, authored under the alias Satoshi Nakamoto. Following that paper, the first use of a blockchain was in early 2009, with the Bitcoin cryptocurrency. Despite the controversy surrounding cryptocurrencies themselves, the blockchain technology underlying digital currencies has been widely regarded for its applications in numerous fields.
Within a blockchain, a “block” is a set of recorded data. Each time a block is completed, it is linked to the previous blocks in a sequential “chain”. All blocks are linked together in a linear, chronological order, with each new block linked back to the original block, creating a permanent database.
Pension fund managers can have confidence that a hedge fund using ComplianceGuard is providing true and accurate information because the blockchain produces an inalterable transaction record. Furthermore, blockchain-based compliance monitoring is done in real-time, so that fund managers can know immediately if a possible compliance violation has happened.
Only approved and authenticated users have access to our private blockchain networks. This means that only asset managers can input transaction data into the blockchain and only auditors and other parties who are granted access (such as pension fund managers) can oversee the registry.
There are a number of papers available online that describe blockchain technology. A succinct and insightful introduction can be found at the following link: http://dupress.com/articles/trends-blockchain-bitcoin-security-transparency/