Banking: Providers have custody of wealth & grant access to owners.
Blockchain: Owners have custody of wealth & grant access to providers.
Etherplan is a global wealth management network that lets people connect their friends, family and advisors to manage the full life cycle of their smart investment plans on the blockchain.
Smart Investment Plans (SIPs) are software programs that hold funds and are hosted on the blockchain instead of the financial system.
SIPs are also structured as revocable living trusts providing control and continuity through the full life cycle of people’s wealth.
Etherplan Explained, by Donald McIntyre
Client SIPs are hosted on public blockchain networks like Ethereum. This means they are not deposited at financial institutions which eliminates institutional and systemic risks and only owners have absolute control.
Since SIPs are programmable, they may be self-managed 24/7/365, and eventually be distributed to beneficiaries automatically if customers wish so.
If customer SIPs are separated from financial providers, this means that financial providers have to come to them instead of the other way around. Therefore, healthy competition is naturally promoted for customers’ business.
No vendor lock-in:
Since they are independent, there are no barriers to change financial providers and select the best-in-class at any time for any portion of the SIPs. Investment products and providers may be replaced in seconds.
In an environment of enhanced competition and flexibility to change, financial providers need to offer their best services possible to keep clients’ business.
No conflicts of interest:
SIPs are incorruptible software programs controlled by their owners. They have no self interest and financial providers cannot convince them to buy or use services that benefit them instead of customers.
Enhanced competition, no conflict of interests, and an efficient decentralized platform guarantees that SIPs will always pay the lowest fees and commissions.
From a reduced universe of investable products and investment advisors, to a worldwide array of opportunities to enhance returns and diversify risks.
Because SIPs run on a global, distributed, and cryptographically protected network, they are unbreakable, stand the test of time, and have no central points of failure.