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Financial Services Blockchain

Provenance Blockchain provides the foundation to build marketplaces and exchanges for buyers and sellers of digital assets.

Registry, Ledger, Exchange

Provenance Blockchain is a distributed ledger technology with three key attributes: Distributed Information, ** Immutable History**, and Trustless Data. Distributed content provides a robust defense against hacking, eliminates agency problems that can lead to malfeasance, and facilitates enforceable digital contracts. Data written on the ledger is immutable and cannot be altered, ensuring a transparent and tamper-proof record of asset history and information. Rep and warranty data introduces risk and undermines the system, but Provenance's immutable information and trustless data ensures a secure and reliable system.

While these attributes are necessary, they are not sufficient to fully eliminate rent-seeking and bring incremental value to financial markets. Provenance Blockchain goes beyond these attributes and performs three key functions: ledger, registry, and exchange.

  • Ledger - Provenance Blockchain enables movements of value on the blockchain, delivering true economies of scale. Immutable records reduce or eliminate the need for trustees and reconciliation, and provide real-time visibility to information.
  • Registry - Ownership is determined solely on the blockchain, enabling T+0 pledging and sales of assets. Chain of custody is immutable, and recording and conveyance are the same thing, eliminating latency and discrepancies.
  • Exchange - Price discovery becomes transparent, eliminating the need for market-making intermediaries. Assets can be tokenized, allowing fractionalized sales and creating liquidity in illiquid asset classes.

By performing these key functions, Provenance Blockchain brings a new level of efficiency, transparency, and accessibility to financial markets.

Enabling Marketplaces

Provenance Blockchain makes it possible to create marketplaces for buying and selling digital assets without relying on third-party intermediaries. These marketplaces can provide transparency and liquidity, and allow for new kinds of financial engineering and business opportunities.

Think of a marketplace as a digital town square where different stores sell different products. Each store represents a digital asset that can be bought and sold, like stocks or bonds. Some stores may require accreditation before you can enter and transact, to ensure compliance with regulations like KYC/AML.

Provenance Blockchain provides the underlying technology to power these marketplaces. For instance, the blockchain's support for loans, loan participation, private funds, and securities can be leveraged to offer new products to investors. With Provenance Blockchain, buyers and sellers can trade with each other in a bilateral fashion, without counterparty or settlement risk.

The platform also offers modules like the Name Module for KYC/AML and accreditation, and the Account, Marker, and Bank Modules for real-time settlement without counterparty or settlement risk. Complex ownership, exchange, and settlement functions can be expressed using Provenance Blockchain Smart Contracts.

In summary, Provenance Blockchain enables marketplaces to be created that offer unprecedented access, ease, and transparency to buyers and sellers of digital assets.