The technological revolution continues to reshape and disrupt the way people and businesses conduct their daily activities, from basic human communication to the most advanced surgical procedure. In banking and finance it is no exception. Traditional methods and processes are streamlined, augmented, or replaced with technology that is better, economically and expediently. The outstanding pace of this advancement does claim many victims, where giant behemoths get toppled by new companies due to their lack of agility to adapt to modern technology and get outpaced by the competition in an instant, being made irrelevant in a matter of weeks. Hence, it has become increasingly important for organisations to keep up to date with the latest advancements in technology and be open to new ways of doing business that may be foreign to their original practice.
With scalability and advancement as the main values of the company, Pendulom set out to be a forerunner instead of taking a reactive stance when it comes to technology, most importantly, Financial Technology or Fintech.
One of the more significant technologies to emerge from Fintech is Blockchain. Made famous as the technology behind Bitcoin and other cryptocurrencies, Blockchain is considered by many to be the holy grail of the financial industry. The idea of Blockchain is simple, a transparent distributed digital ledger system managed by a network of computers that is used to record transactions between different parties. Each transaction is encrypted and once executed, added to the original string of transactions creating a “chain”. Therefore, Blockchain provides a very high level of safety and security when it comes to exchanging data, information, and assets such as currency. Blockchain creates a transparent and reliable landscape to conduct business and financial activities.
Pendulom created the Altimates platform utilising Blockchain in many of its key areas. For example, your wallet and currencies in it are stored in the Blockchain where every transaction can be verified, recorded, and traced. This includes every contract subscription that is made in the platform, ensuring the safety of each investment and preventing any fraudulent activity within the platform. These subscriptions are also Smart Contracts running on the Blockchain that have set conditions such as Scheduled Payouts, maturity dates, and Knock In or Knock Out barriers that execute automatically when the condition is met therefore removing any chance of delayed or erroneous payments. As with other crypto currencies, the Altimates token also utilises Blockchain as is backbone. Your wallet becomes a record that is verifiable, tamper free, permanent, irreproducible, and not owned by a single entity, essentially your “digital asset”, where its authenticity and value is guaranteed therefore acceptable by all parties.
Earlier this week China’s President Xi Jinping endorsed the development of Blockchain to be used and implemented into all industries as a “core technology”. His call for China to urgently invest into Blockchain technology has caused the markets to rally for any business or company developing, related to, or even using Blockchain, so much that 85 companies listed Shanghai Stock Exchange hit the daily limit of 10% growth that day and the Shenzhen tech index surged 5.3%.
Investors flocked towards these businesses as this support from the Chinese government may entail billions of dollars in subsidies and financing. Not to mention the idea of a Chinese government centric infrastructure for cross border financial transactions that then expands to all other government sectors from identification to traffic, has huge growth potential.
No doubt that Pendulom and our clients have benefited significantly from this news but be advised not to be overly excited and make unreasonable bets. What we believe is that rational understanding and adoption of technology is the key to accelerating growth that is sustainable for both our client’s investments and our own.