Blockchain and Cryptocurrencies: A Primer for Financial Planners

Posted on February 15th, 2019 at 2:47 PM
Blockchain and Cryptocurrencies: A Primer for Financial Planners

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the first article in a three-part series to provide basic insight needed to understand the new world of blockchain. What is blockchain? How is it related to cryptocurrencies? What is “Bitcoin” all about?

Blockchain is, generally, the technology that provides a sphere in which digital assets are being transferred. Think of it as a huge database that keeps track of the transactions’ data without an intermediary. Each database provides a non-amendable record of all of the transactions entered into it and then secures them by use of a “hash”. The “hash” is an individualized key that advises those who have access to the database where the information came from and when. Each time more information is entered, the new data is entered alongside the old data, creating the “chain”. There are public blockchains and private blockchains. Private blockchains are akin to the internal systems that a business would use.     

The types of digital assets transferred within blockchain include cryptocurrencies or digital currencies (making up about 40% of the market cap). And Bitcoin is just one of thousands of different types of cryptocurrencies, so beware of conflating the terms when discussing possible investments in cryptocurrencies.

 The second part of our three-part series will focus on the gritty details of cryptocurrencies as investments, and the third part of our series will focus on the impact of both blockchain and cryptocurrencies into a business.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, blockchain, cryptocurrenc, bitcoin, digital assets, investments

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