Problems in the trust management market and their solution with the help of Membrana

Today we’ll be talking about problems encountered in trust management and the trust management market. After we break things down, we’ll represent the solution that the Membrana platform offers to its users.
As you may already know, Membrana is a blockchain platform to conclude mutually beneficial and secure contracts between investors and traders for the trust management of cryptocurrency assets. It provides solutions to various problems found in the trust management market.
Stay tuned to find out what the common problems in this niche are and how Membrana solves them.

Problems of modern trust management

First of all, we feel obligated to point out how risky this entire sphere is. After all, it’s all related to cryptocurrencies, and we know how volatile that market is. Unfortunately, volatility is something that neither you nor we can control. It is what it is, and it’s up to us to deal with it the best we can.
Aside from volatility, there exist a few other problems:
  • Lack of information for both managers and investors
  • Lack of transparency
  • Lack of trust due to the high presence of fraud
It’s quite obvious why there’s such lack of information on both sides. Since both managers and investors are tied to one broker and one exchange, they aren’t able to see what’s going on around them – they lack the ability to choose!

Why it’s important to choose, and other problems

Imagine if you, as an investor, got tied up to one broker and one exchange without the ability to see what else other exchanges and brokers offer and without the ability to compare. One should always have the ability to see what else the market offers in order to opt for the most suitable choice.
Now let’s talk more about the ever-present digital investment risks. The bad thing is that their destruction rate, whether we admit it or not, is quite high.
Unfortunately, transparency is a huge deal because, now, brokers are able to mess with trade histories and can even hide commissions and the mechanisms of investments. Because of this, there’s no way for investors to know if the trade history they’re looking at is real or fake.

Attention! Fraudsters spotted!

Last but definitely not least, we have a problem with infinite amounts of fraud. “Where’s the space for fraud?” you may ask yourself. Basically, as an investor, you’re investing in a trader, hoping that he won’t run away with your money and praying he knows what he’s doing.
Hopefully, you’re already aware that there’s lots of space for fraud here. Just as we’ve noticed the potential for fraud, so too have the fraudsters. As an experienced investor and trader, you can tell a fraudster from a trustworthy person easier than a beginner can.
Some people may say that because it’s a financial niche, fraudsters are a natural occurrence, but this issue is not something that we should simply ignore. We might not be able to minimize the fraud rate, but we sure will try to do everything we can to prevent as much fraud as possible.

Main goal that the Membrana platform achieves

The problems mentioned above are just some of the problems that investors are experiencing constantly. To step things up and increase safety for digital assets, the Membrana platform offers answers to these problems – answers to digital investment risks, to be precise.
We realized that the main thing we had to accomplish was allowing the investor and the trader to communicate directly and safely (and in private) while paying attention to WHO has the right to do WHAT.
One thing worth mentioning is that the funds stay on the investor’s exchange account! Membrana just helps direct the traffic; none of the funds are owned by Membrana.
Now, let’s talk more about how the Membrana platform actually works and how it solves the main problem – the lack of trust.

No more lack of trust

Things work like this – the investor is supposed to give the trader the right to manage his funds. However, the traders have traditionally been allowed to POSSESS the funds, not just manage them. This setup is what has created so much space for fraud.
The Membrana platform allows traders to manage investors’ funds without the ability to also possess them. Traders get access to investors’ exchange accounts through the platform’s user-friendly interface. This way, traders are forbidden from doing anything that the investor wouldn’t approve of.
On the other hand, we had to make sure that the traders don’t get tricked by the investors. To make sure that traders get paid, Ethereum smart contracts guarantee the commission fee.
We could achieve safety for digital assets thanks to the advantages of the Membrana platform.