How Blockchain is revolutionizing fraud prone industries

While the majority of the general public probably heard of Bitcoin, fewer understand blockchain technology, the revolutionary system on which almost all cryptocurrencies are running on. You often hear people saying, that blockchain currencies cannot be trusted, as nobody is backing, nor managing them. However, that’s the wrong way to be thinking about blockchain. With a decentralized network, you don’t need to trust anyone, as transactions are verified by the crowd (numerous nodes). It’s this concept, among other characteristics, which gives digital currencies their value.A common metaphor used when explaining blockchain, is the “poker without chips” example. Imagine you and three other friends are all playing poker, but you have not enough chips to determine the holdings of the other players. You therefore all agree to keep track of all individual holdings, by each writing them down on a piece of paper (each of the players has now a running ledger of positions held by each hand). You all start out with $100.

Now one of your friends, Dave, is getting the worst hands over and over again. After just five hands, he’s out of money, losing his last $30 in one go. But he really wants to keep playing. Instead of writing in the ledger that he has no holdings anymore, he writes down that he still owns funds of $5. However, as soon as you keep on playing and Dave starts to bet the $5, his friends can immediately call him out on it. On everyone’s ledger, he has zero holdings, as his losses were previously recorded on all ledgers. Now imagine instead of being four guys around a table, its thousands of users worldwide running specialized software to verify that transactions are valid.Since everyone has a copy of the ledger, everyone can see all transactions and holdings. These transactions are public and completely auditable. This feature of blockchain tech, is especially attractive for industries, that struggle with corruption, or other trust related issues. The public can be completely aware of where the funds are going in any given company or organization.

Pension plans are an area that could immensely benefit from a structure that’s reviewable and auditable. Due to the current low yield environment, many pension funds around the world are experiencing record low profit margins and are struggling to generate the returns needed to meet their pension obligations. A blockchain based pension plan platform, would allow pension savers to track their savings and be more in control of their savings and ultimately their retirement. Traditional pension funds are usually obscure and give very little insight and frequently face corruption, mismanagement and even loss of funds.The Auctus team is building a fully transparent and automated blockchain based pension platform on the Ethereum network. Users will have features to track their savings, view holdings, take active decisions and be in control of their pension. Processes will be fully automated by Ethereum Smart Contracts, thus eliminating the potential for mismanagement and at the same time save operational costs and thus increase pension returns. Pension savers will not only be able to faster achieve their pension targets, but have peace of mind that their pension is transparent and secure.

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