October 16, 2018
Our journey’s cornerstone to the democratization of the capital markets
Wuzu is a one of a kind global initiative. It facilitates the inclusion of millions of people into the capital markets via digital assets.
The collective consciousness of humanity widely understands that individuals that accumulate wealth follow a specific formula; work hard, live frugally, and save money. Eventually, this individual will have accumulated enough money to invest. The number one investment of choice is real estate for obvious reasons. People need a place to live, and it appreciates in value; it is a fantastic win-win type of investment. However, what about the incredible opportunities such as the stock market, venture capital, mutual funds? These are more aggressive and risky forms of investment, but they generate fortunes for individuals that have access to it, and to play with the big guys one needs to have a significant net worth before being considered in such investment operations.
According to the newspaper Folha de São Paulo, in Brazil alone 600 thousand people have access to the stock market, a number that accounts for only 0,3% of the population. Most people don’t even investigate ways to put money to work for them, instead of working for it. Taking the stock market once again as an example, the complexity and bureaucratic nature of it repels people, and financial institutions repel them even more. Fortunately, innovation is here, and it is called Wuzu. It is revolutionizing the capital investment industry by facilitating the inclusion of millions of regular people, that in any other time in history would be shut out of it. The inception of blockchain technology and cryptocurrencies made this reality possible. However, navigating this new investment opportunity is quite challenging. This is when Wuzu comes along to lend a helpful hand.
Wuzu is on a mission!
The mission to democratize access to capital markets, helping both those who desire investors and those who want to invest. Wuzu is a blockchain-based Multi-Exchange-Network (MXN) that we have been working on since 2016, and that we are thrilled to launch it now. The name may sound fancy, but the principle is quite simple; we provide exchanges with the technology they need, but with an architecture, features, and speeds that are not available anywhere else.
To fully grasp the concept of a Multi-Exchange-Network is necessary to understand the background of the evolution of capital markets in general and cryptocurrencies in particular. They are the driving force to broader and fairer access to investment markets.
To understand them we need to go back, way back in time.
In the early days of capital markets, access was even more restricted. In 1531, when the first commodities markets sprung up, only two countries had them; The Netherlands and Japan. The year of 1698 marked the birth of the now notorious Stock Markets, and the vast majority of the human population had no idea of what they were. Fast forward to 1994, and we get a glimpse of what democratizing access to investment could be. 1994 was the year that Web Trading Platforms hit the market with a vengeance. These allowed scores of people to have the first contact with trading and investing in stocks, all from their homes, via the internet.
We take another jump in time to 2009 and Bitcoin is taking its very first steps. This was when things started to get truly interesting, as the idea of purely digital money seems to shake things up in the investment markets worldwide. In 2009 the world was at the height of the globalization movement, borders seemed inexistent due to the wide spreading of the internet, magically distance disappeared, everything and everyone was just a click away.
International transactions, however, did not follow the innovative track of technology in the 00’s. It still functioned the same way as in the early 70’s, when the SWIFT network was implemented. These transactions are cumbersome and bureaucratic, but the birth of cryptocurrencies shows the potential to tear down geographical barriers for the capital movement.
Wuzu jumps head first into this new possibility!
Seizing the opportunity to cancel the geographical barriers we act as a connection between investment institutions and investors. We do exactly what a Stock Exchange does, but based on cryptocurrency clearing technology. This makes our service genuinely global and much faster than what is possible today.
To give an example, in classic Stock Exchanges, the settlement between a buy and a sell order is made the same way it was done 30 years ago, via paper. This means the settlement takes up to 3 business days to be fulfilled. Wuzu’s technology settles the same operation in just 30 minutes. This settlement speed is not limited to Bitcoin or other cryptocurrencies.
Versatility and speed are the names of our game.
Wuzu can handle all types of financial transactions, such as commodities, assets, equity, financial instruments, etc.
We can even ease and quicken the Equity Trading Funds (ETF) creating process. What used to take months we can make in 2 weeks. This time frame does not include the complete bureaucratic process and the gathering of necessary paperwork.
The reason why Wuzu can achieve such time efficiency is due to the use of Smart Contracts, an Ethereum based tool that allows the creation of different sorts of contracts. These are recognized and verifiable around the world. To put it simply, any type of investment can be made initially in cryptocurrency to be later converted into other operations as needed.
Blockchain technology is considered by many to be the most significant achievement in computer science since the invention of the internet. Its applications are so vast that we are just starting to comprehend it’s potential. However, one thing is clear the financial markets will never be the same, and Wuzu is proud to be part of this revolution by bridging the gap between those looking for an investment with an entirely new population of investors. Welcome to the future of finance!