CTO at ALT/AVE, Nino has 20 years of experience from business development, IT security, and finance. He has extensive knowledge on how to combine cutting edge technologies with governance models to support growth. Nino also co-founded Ledgerstate and Hamilton People, a HR/Technology company employing over 1000 people in Norway, which he later sold to TopTemp. His extensive network enables him to utilize the best technologies to achieve our goals.
Q: Could you tell us a bit more about ALT/AVE’s Durable Medium Repository or DMR and why it’s changing the way financial institutions communicate with their customers?
The digital distribution of regulated documents for financial institutions is complicated and as a result we see many firms revert to paper or implement inefficient digital onboarding journeys.
What’s exciting is that ALT/AVE is using Distributed Ledger Technology to solve such a complex problem.
I believe this is one of the best uses of Distributed Ledger Technology I have seen. Because it’s decentralised, we are able to host these documents on a third party location. Where it gets interesting is that the location isn’t a company or a person, it is network that is shared by the world’s leading companies.
Equally important is the fact that because of the way it is designed, it is easily integrated into existing solutions so this means it’s versatile and can solve numerous communication challenges for financial institutions.
Q: What are the benefits of DMR?
The immediate benefit is that you can now streamline the way you communicate with customers in a way that is digitally safer than the alternatives whilst meeting the regulatory requirements
It acts as an independent location to store and distribute regulated documents that is secure, immutable and transparent. Transparent in the sense of the technology.
Most importantly it provides trust to the customer, and the regulators, that the documents are stored and distributed in a way that their content cannot be altered which is why it’s so important in the context of the durable medium regulation.
Q: How do these translate into functional benefits for Financial institutions?
There are many, firstly it makes the digital distribution of regulated documents compliant. It is also extremely cost efficient and simple to implement. This means that firms can confidently move away from the use of paper, which is great for the environment.
It also means you no longer need to rely on sending attachments to customers which reduces the risk of cybercrime.
Lastly, I would say it’s a superior customer journey when compared with secured websites and HTML emails.
Q: What is the role of Hedera Hashgraph?
It’s exciting that we have managed to utilise a public network like Hedera which is one of the most advanced public networks there is and that we have accelerated the implementation of a technology that’s considered to be a 5th industrial revolution.
If you compare Hedera to other blockchain and distributed ledger networks like Bitcoin and Ethereum, it’s much faster and the transactions can also be entered in parallel and not serially. This means it has low latency and therefore it takes only a few milliseconds for a transaction to be sent out and confirmed with 100% certainty. With Bitcoin, for example, you can only do seven transactions a second, and with Ethereum you are talking about around 30 transactions a second. In comparison to this, with Hedera Hashgraph’s test environment we’ve managed hundreds of thousands of transactions in a second. To give you some perspective VISA has around 4000 transactions per second. This means it is incredibly scalable and if you send out a shared document, such as a NOV [Notice of Variation], it can be accessed by hundreds of thousands of customers simultaneously and instantaneously.
If you would like to find out more about any of the content featured in this Q&A, please get in touch with us at firstname.lastname@example.org