Sure, we’ve all read news articles and participated in conferences and webinars where blockchain, the technology best known for supporting bitcoin, has been discussed. Chances are you know blockchain is an open source software tool heralded as a resource for transforming the financial services industry.
Perhaps your knowledge is a little deeper, and you are aware that firms like Microsoft and State Street Corporation are exploring how to leverage this distributed ledger technology, first introduced in 2008, to securely meet their data management needs. And maybe you’ve even heard of some of the advantages blockchain; for example, according to State Street’s Explainer Series, blockchain is secure, efficient, and can be open or closed.
But, unless you are a tech professional, are you confident that you could you REALLY explain blockchain?
So, I went to the web to find a reputable and up-to-date source to demystify blockchain and help me understand all the excitement about it.
A quick Google search for “blockchain” and “mutual funds” revealed more than 75,000 entries in fewer than 30 seconds.
As I scrolled through the results, my eyes pounced on an article in the Wall Street Journal‘s CIO Journal series published in February 2016 entitled, “What is Blockchain?” The article leads with an illustration by Oliver Wyman describing the function of a distributed ledger.
Skimming the subheadings in the Wall Street Journal article led me to the second paragraph, which reads, “A blockchain is a data structure that makes it possible to create…”
From there I devoured the article written by staff reporter Steven Norton.
The simplicity of the piece helped me understand the power and potential of blockchain.
Do I understand what it means for the mutual fund industry? Not completely. But I am interested to learn more. So I plan to talk with our Chief Information Officer Don Foberg, and Business Solutions Analyst Phil Blake to learn how Boston Financial is leading and learning from the industry discussion of blockchain. And we’ll report the findings here.
Have a mutual fund industry topic you’d like to understand better? Let us know in the comments section and we’ll do our best to help out.