Q&A with Mohamed El-Masri: Blockchain and investment

In this Q&A session with Mohamed El-Masri, founder and chief executive officer of PermianChain Technologies, we discuss the investment opportunities that the blockchain creates and how the sector can polish its reputation if governments and regulators start to play a proactive, positive role.

Q. How can the transparency of blockchain enhance the way that we invest?

The blockchain’s transparency makes it simple for investors to track asset performance and understand activities and their ramifications across a broad portfolio of investments. In a well-managed blockchain environment, everyone with the correct level of access can see what part of a process has been reached and what needs to be done to move it to the next stage. From an investment perspective, this makes it more simple to gauge how long it might be before an investment bears fruit.

Q. How do we give potential investors the confidence to participate in the blockchain?

Transparency is going to be key. The blockchain has faced two key challenges over the last few years.

Q. How could governments and regulators play a more active role?

The lack of confidence in the blockchain is exacerbated by the stance taken by many governments, who have seen the rise of crypto as a potential threat, rather than something that can be used to enhance existing governance (and even revenue collection). There are governments around the world that have taken a more positive position, but up to now these have very much been in the minority.

Q. If governments and regulators take a more active role, won’t that mean that they will take a cut of profits and reduce the viability of some projects?

The key point, as with any investment, is that returns are more likely to be both realistic and actually realised if regulators take an interest in the level of risk that a project represents and investors do their own due diligence. In the blockchain investment space, as in any form of investment, if it sounds too good to be true, you probably need to do some more due diligence.