Teneisha Johnson
Billions (A new machine for creating trust): The Blockchain Innovative Technology
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The global financial crisis blamed hedge funds for the global financial crisis but according to my most recent findings that was completely untrue.
Official reports prepared for international regulators and various authorities stated that it was acknowledged that hedge funds did not cause the global financial crisis- it was triggered by failures in the regulated banking industries.
Hedge funds in fact brought much needed liquidity to the markets after the crisis.
Guess what else has the potential to transform a significant part of the financial services sector? Cryptocurrencies, Initial Coin Offerings and Blockchain Innovative Technology!
According to the Cayman Islands Journal, cryptocurrencies like bitcoin, blockchain technology and initial coin offerings (ICOs) have been the buzzwords in the tech sphere for the past couple of years.
With a rapid speculative bubble developing around bitcoin, the topics have not only transcended the limited space of the technophile but also created a mainstream investment buzz.
Yet public knowledge about blockchain, the technology on which cryptocurrencies are based, and its potential uses and risks is still limited.
Opinions are divided as to how successful blockchain technology and cryptocurrencies will be in the long run and if practical, real-world applications will live up to the hype.
Jude Scott, the chief executive officer of Cayman Finance, differentiates between cryptocurrency and the underlying blockchain, also known as distributed ledger technology.
“The technology itself is absolutely amazing, it is revolutionizing and will fully revolutionize the financial services industry,” he told the Caymanian Bar association in April 2018 at a CBA seminar on the new technology.
Mr. Scott believes cryptocurrencies will ultimately become a separate derivative asset class that hedge funds and other investors will invest in.
However, he does not think cryptocurrencies will ever fully replace regular, government-issued fiat currencies.
For more of his thoughtful and intelligent insight visit: The Cayman Islands Journal
http://www.journal.ky/2018/05/04/regulating-cryptocurrencies/
Apparently a blockchain is a distributed computer-based ledger, which means that the data that comprises the ledger, itself, is duplicated and stored on several different computers that are connected through a network.
The ledger records transactions between different participants, each of whom has their own “wallet”, which is actually the participant’s private encryption key.
The new blockchain becomes the updated ledger that is propagated or in a simpler context, distributed throughout the network.
Since all the information is shared, regularly updated, and distributed, the transaction data is transparent and easy to reconcile.
I was also fascinated to learn that each block is encrypted and is virtually impossible to access without a private key, thereby protecting users’ security and privacy.
Also, due to the nature of the encryption, the longer the chain gets, the more difficult it becomes to hack and the more secure it becomes.
According to my most recent research, the financial service’s infrastructure will have significant cost savings associated with the new blockchain technology.
By 2022 Santander estimates $20 billion per year in savings for the U.S. banking system will be attributed to blockchain technology because of the reduction of banks infrastructure costs associated with cross-border payments, securities trading, and regulatory compliance.
Now that is what I call a revolution!
I love to talk about money and why not? I live in one of the greatest jurisdictions on the planet with a healthy robust financial system.
It should also be noted that there is a strong demand for Cayman Funds and we are very proud of our excellent service providers.
I strongly believe we should start teaching our kids about money.
I was doing my usual reading of The Journal and an article by Alessandro Sax also stated that we should start young.
He said that with most skills, the earlier in life you are taught the more it becomes second nature.
A child’s foundation of money begins to develop as early as three years old, with studies suggesting that kids’ money habits are already formed by age seven.
Knowing this, he believes that parents should take advantage of the everyday teachable money moments.
There’s more information on this particular subject at:
www.journal.ky/2018/04/04/teaching-the-next-generation-about-money/
Now I’m not trying to preach “prosperity gospel” but God has a lot to say about money too.
We’re constantly concerned about the bottom line, profit-and-loss statements, annual reports, quarterly profits, margins, expenses…I’m already getting a headache. Lol!
While money is vital to maintain any business, even the business of running the country, we must consider what God has to say about money.
It may surprise you that more than 2,350 verses in the Bible refer to handling money.
God’s economy, where He plays the central role, is in sharp contrast with man’s financial principles.
Unless we trust God with our finances, it’s difficult to comprehend God’s invisible and supernatural financial system.
Our relationship with the Lord is revealed in how we handle money.
“If you have not been trustworthy in handling worldly wealth, who will trust you with true riches?” (Luke 16:11).
Yet, the question of why unethical and immoral business people prosper continues to be asked.
Perhaps you have become envious of someone who has amassed a fortune through unscrupulous motives.
Ungodliness seems to have “paid off” for them.
However, God’s blessing should never be equated to prosperity or wealth.
His perspective of prosperity is based on a spiritual value system which is limitless.
He’s the most qualified Director and Trustee providing us with exceptional corporate and universal governance of the highest standard.
God is sovereign and you can depend on Him.
Luke 12: 22-31 says, “Do Not Worry
22 Then Jesus said to his disciples: “Therefore I tell you, do not worry about your life, what you will eat; or about your body, what you will wear.
23 For life is more than food, and the body more than clothes.
24 Consider the ravens: They do not sow or reap, they have no storeroom or barn; yet God feeds them. And how much more valuable you are than birds!
25 Who of you by worrying can add a single hour to your life?
26 Since you cannot do this very little thing, why do you worry about the rest?
27 “Consider how the wild flowers grow. They do not labor or spin. Yet I tell you, not even Solomon in all his splendor was dressed like one of these.
28 If that is how God clothes the grass of the field, which is here today, and tomorrow is thrown into the fire, how much more will he clothe you—you of little faith!
29 And do not set your heart on what you will eat or drink; do not worry about it.
30 For the pagan world runs after all such things, and your Father knows that you need them.
31 But seek His kingdom, and these things will be given to you as well.”
No Fraud
Recent changes to the Cayman Islands Proceeds of Crime Law, 2017 (POCL) has clarified that persons conducting relevant financial business, whether a non-profit or an unregulated investment fund vehicle, are now required to appoint an MLRO, and an alternate, and to have a AML/CFT compliance program in place.
It should come as no surprised to discover that the Cayman Islands Monetary Authority has already been paying keen attention to the suitability of MLROs appointed by its licensees, recommending changes where it considers there is a need.
It is anticipated that the Department for Commerce and Investments will ultimately do the same, once its enforcement powers over certain members of the Designated Non-Financial Businesses and Professions and Non-Profit sector, is enlisted.
Under section 136 of the POCL, a person commits an offense if he does not make the “required disclosure” to the FRA or his MLRO or deputy, of a suspicion or actual knowledge of terrorist financing or money laundering that has come to his attention in the course of doing relevant financial business.
Section 137 sets out the circumstances in which an MLRO commits an offense for failures to make appropriate disclosures.
At the serious end of the stick, persons (including your MLRO) could find him or herself imprisoned for five years so there are real consequences.
For more information visit:
http://www.caymanfinancialreview.com/2018/04/19/not-for-love-or-money/
The Lord’s bounty is not contingent on what position you hold, what school you attended or what business you’re in.
“If you remain in me and my words remain in you, ask whatever you wish, and it will be given to you” (John 15:7).
Think about it! This simple truth can set you free!
It doesn’t matter what you’ve done, who’s hurt you, or whom you’ve hurt, it’s not too late.
With Jesus Christ trust can be restored!
If we are willing to demonstrate that we have changed not just by what we say but by what we do, then others will often allow us to restore their trust.
We may need to apologize, to restore, and to make amends to be taken seriously, but if we sincerely move in a new and better direction, others will notice.
Our actions will speak loudly!
Still certain people may try to lock you into an old role or to define you by a past mistake.
Sometimes their jealous or possessive nature may seek to lock or chain you to their ideal vision; and that might not be the vision God has for your life!
These men or women display their insecurities when they won’t allow you to transform yourself and move on.
But these “naysayers or haters” will definitely be in the minority, so do not focus your energies on arguing with them.
Instead pour all your energy into transforming yourself into a man or woman who may have a tarnished past but who has a twenty-four karat, head to toe clear future!
Jesus# Blessed!
According to the latest news in the Cayman Financial Review, cryptocurrencies have a lot in common with offshore financial centers.
If you live and work in an offshore financial center, such as the Cayman Islands, Bermuda or the Bahamas, you will likely know what it is like being on the defensive about an industry.
To the uninformed, offshore financial centers are viewed as nothing more than tax havens that represent a secretive subset of modern global finance.
For a foreigner living in one of these jurisdictions, a trip to his or her native land may involve a debate with someone who is not informed about what actually happens offshore.
Education is the key!
It is required to win any of these arguments and it will also provide transparency about the workings of the inner system.
If you think about as I have when I read this article, it is also possible to offer others a different perspective to consider.
According to the article written by Cory Macculloch, Managing Director, Sterling Trust (Cayman) Limited, despite the stigma, offshore financial centers are not the secretive settings portrayed in the media.
The same is true with cryptocurrencies (he used the alternative term “digital assets” or “blockchain assets” below).
Both offshore financial centers and blockchain assets may be pseudonymous (interesting word) by default but they possess architecture that make them incredibly transparent when used correctly.
Mr. Macculloch said,
“If we are transparent about the reality of the system, the uninformed will see that the system is transparent (that is a lot of transparency).
That is the modus operandi of this article: to offer transparency to those on the outside.
Transparency in connection with what blockchain assets are and transparency with what certain service providers, such as banks and custodians, are doing in this space.
I do this by answering two common queries I am faced with when describing a few of the blockchain-based services provided by the Sterling Financial Group.”
How do custodians hold blockchain assets in a way that is secure?
He continues to state,
“We are often asked by people who are learning about the industry how custodians go about securing blockchain assets.
We love answering these questions because every time we do, we are afforded an opportunity to explain how blockchain networks, such as Bitcoin, work.
In order to understand security, one must first understand how blockchain assets are recorded and transferred in the first place.
For this, I use a general metaphor to break down a few basic steps in the transactional processes that occur on the Bitcoin network.
The same general metaphor applies to most other blockchain networks.
1. The first step in any Bitcoin transaction is the generation of a private key and a corresponding public address. Both the private key and public address are a string of alphanumeric characters.
The metaphor: think of a manufacturer that creates physical keys and indestructible custom mailboxes. To build a mailbox, the manufacturer uses one mold that contains the dimensions for both the mailbox and the unique key associated with that mailbox.
2. The public/private key generation ceremony may occur offline.
The metaphor: in most instances, the manufacturer creating the private key and mailbox can do so in a secret, dark and cold manufacturing plant that has no doors so no outsiders can access. This is important because no one will be able to take a look at the dimensions of the key to recreate it.
3. The public address serves as a destination point for units of bitcoin transferred on the Bitcoin network. A bitcoin is a unit of account recorded on that public address.
The metaphor: when the key and mailbox are created, the mailbox is embossed with an address where the mailbox will be publicly installed.
The person who owns the key to the mailbox can provide this public address to his or her friends. These friends then will have a physical address where they can deposit postcards. Each mailbox has an automated counter that displays how many pieces of mail have been deposited.
4. Attempting to transfer a unit of bitcoin assigned to a public address without the corresponding private key is futile.
The metaphor: although the mailbox will be public, only the person who possesses the key to the mailbox can open the door and take postcards out.
We trust the integrity of the locks on the mailboxes because the best locksmiths in the world have audited and tested the lock-creation process.
It is also helpful to know that the exact same manufacturing process has been used for years in other locks that we rely on every day.
5. Transferring a unit of bitcoin assigned to a public address requires the holder of the private key associated with that address to select the amount of bitcoin to be transferred and the destination address. This transaction can only be confirmed/signed by the holder of the private key associated with the public address.
The metaphor: I have a mailbox that is filled with postcards. I want to transfer three postcards to my friend. I ring up the post office and tell them that I have three postcards to transfer to my friend’s mailbox next door.
The post office informs me that they will pick up the postcards next morning and effect the transfer. I meet the post office the following morning, open mailbox with my key, and they then take the postcards and deliver it directly. Without my key, the post office cannot deliver the postcards.
So, how does a custodian keep blockchain assets safe? The answer may be different for every custodian.
In our opinion, the real way of doing it lies in how we allow steps 2 and 5 to happen. At Sterling, we have created an amazing offline environment to create mailboxes and keys.
Once these mailboxes and keys are created, we take custody over keys and carriage over the mail delivery process. We do not leave keys out in the open.
As you may imagine, our actual procedures and systems are complex for the safety and security of our clients. With that said, I can say that we have built an enterprise grade, air-gapped, proprietary computer environment that encrypts and shards private keys using both digital and analog methods which require X of Y people to effect transactions.
To summarize: we understand the technology.”
Awesome!!
For more information regarding this article visit:
