Unprecedented Transparency

Companies that continue to wrestle with whether they must transparently disclose reliable information about their business footprint are missing a dangerous point. They’re breaking the law. While several non-financial reporting regulations have recently been enacted, including the UK Modern Slavery Act, you can go all the way back to the 2010 California Transparency in Supply Chains Act where its legislature reminded companies that slavery and human trafficking were already crimes; that several California based companies were breaking them; and that consumers, absent of public disclosures made by these same companies, were inadvertently sanctioning such crimes through their purchase of products.

If this is the new standard that market forces are demanding with their wallets, legislatures are demanding with laws, not just in the United States, but globally, what better solution than the BlockChain.  When coupling a globally accepted BlockChain like Ethereum with the Inter-Planetary File System, (commonly referred to as IPFS), the solution begins to take shape for the world of High Finance. The Alitheia Fund.

Alitheia Holdings, Inc. wholly embraces the philosophy of complete transparency in investing. All proposals, term sheets, contracts, receipts, transfers, payments, financials, and relevant reports are all recorded to IPFS, which being decentralized in and of itself creates a permanent record of every handshake in a deal, and is indexed on the Ethereum BlockChain for permanent reference that anyone in the world can look up and verify the status of any project within the Alitheia Fund. 



Further yet, every monthly, quarterly, and annual reporting from every project entity within the fund is verified and certified by an independent accounting and investment firm providing two additional levels of investor protection. Without the completion of this accounting process, profit taking will not occur. This element alone sets the Alitheia standard of Fiduciary Responsibility miles above any other fund on Wall Street.

Immutable Accounting

The word “immutable” is heard frequently when people speak about blockchain. The consistency of the blockсhain structure implies the inability to make adjustments to the data after they are recorded in a distributed database. This is achieved due to the main property of blockchain — decentralization, when the individual parts of the network responsible for the authenticity of transactions are autonomous and not connected to a common server.

To protect data in blockchain, the author of the record creates an access key. If changes are made to the block, the previous key becomes invalid, and it becomes visible to all network participants who, by a simple majority of votes, may prevent any further unauthorized actions. Thus, it makes it impossible to proceed with changes to the information stored in the blocks, and this is one of essential qualities of blockchain as a technology.

This majority vote presents the primary vulnerability to the BlockChain, the 51% Attack. In a 51% Attack an attacker has accumulated more computing power in his hands than all the other members of the network combined: a sort of controlling interest of generating power. This would allow an attacker or a group of intruders are able to get 51 percent of a network’s mining hash rate in their hands, they can pretty much do as they please with the world of data within — from altering blocks to manipulating transactions. After all, the majority of votes are on their side.

The main thing protecting the Ethereum network is the lack of incentives to perform such an attack in the first place. To perform such an attack the attacker must be willing to dedicate a large amount of resources simply to destroy something. Unless they have a large financial advantage to gain from that destruction, those resources will largely be lost permanently to them when the network is destroyed. Against this type of attacker, the greatest weapon Ethereum has is the market price and issuance rate of Ether. The higher the market price, the more hashing power gets paid for, and the more expensive an attack becomes.

Equity In 
Every Deal

The Alitheia Fund operates as a Decentralized Autonomous Organization (commonly referred to as a DAO) operating Smart Contracts on the Ethereum BlockChain. All of the rules for the operation of a transparent, compliant and automated Investment Ecosystem exist in the Smart Contracts that comprise the software of the Alitheia Fund. This software automates approximately 90% of daily, monthly, and quarterly and annual events in the Investment World as required of Reporting Entitites to the SEC and FINRA.

The Smart Contract's source code is publicly available on GitHub for all to see, all the investment, profit and loss, operational flow, and expense calculus are readily availalbe for anyone to plug in the reported values and subsequent results, verify all the functions of the Smart Contract work as they should in any reputable Ethereum Testing environment, and the ability to see updates, developments, and improvements to the Alitheia Fund's source code over time.

Using multi-signature processes to finalize events once triggered is a hallmark of the Alitheia Standard to investor protections. Having two Chief level officers of the corporation certifying the event, and releasing the subsequent actions insures that the Fund software is running as coded. Once the rules are written to the Smart Contracts, the Parent Contracts govern their permanence. The fund can add rules to the Operational Flow, but can only remove a rule with unanimous authorization from all Chief Officers and the Board of Directors.

By leveraging the philosophy of decentralization and immutability of the BlockChain to secure the rules of a given investment strategy, investment, or operation built within the confines of the existing laws and regulations governing the world of High Finance investors will always be able to quantify their risk, ROI, and the overall performance of the fund against other investments both in and out of the Hedge Fund world.