Why Capdesk Is Blockchain Ready

When I designed the very foundation of Capdesk, I decided to make it ready for blockchain technology.

In Capdesk we believe that equity registration should be robust and transparent. Equity is worth money, sometimes a lot. How would you feel if your bank could make changes to transactions? It would undermine your trust. Banks and accounting systems have a very simple and transparent revision track. If you need to make a change to a transaction, you must make a new transaction adjusting the balance.

Opposite to every other equity management system I've seen, Capdesk is designed the exact same way as an accounting system. You register transactions, and once published the only way to change them is to register new transactions. This type of revision track is a proven one and extremely robust. It provides transparency and trust for both companies and investors.

Blockchains are essentially a way to store read-only transactions with integrated approval by participants. Technically, it would be simple to push Capdesk transactions to a blockchain upon publish. We don't need blockchains right now as you register transactions on Capdesk after they have been approved by participants. However, we hope some day to facilitate equity transactions end-to-end, not just the registration afterwards. When supporting transfer of securities in exchange for transfer of money, blockchains are ideal. The blockchain provides a very high degree of trust in such exchanges of securities for money. Furthermore, by using a blockchain with integrated approval, need for settlement is eliminated reducing costs.

It started with registration of share transactions, but we've ensured our architecture all the way to option transactions (issuing, lapsing, exercising), warrants and convertible notes (issuing, repaying, converting). You and your investors will love our effort to provide you with the most robust, transparent and efficient equity management software there is.

P.S. Our amazing UX-designer has revolutionized the way you make changes in a read-only transaction system (pay attention accounting system developers). On Capdesk, you simply revoke a transaction and the system will automatically create an opposite transaction (dubbed revocation) - and you're free to make the correct transaction. Revoked transactions and the corresponding revocations are excluded in views by default for a perfect overview. But you can always include revoked transactions and revocations to inspect the revision track. It's easy - and transparent.

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Mikkel Boje
Mikkel Boje

Mikkel is our CTO and co-founder at Capdesk. He holds an MSc in Artificial Intelligence from University of Edinburgh and is part of our Copenhagen office.