Asset-Management Performance Verification via Portfolio Hashes
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Solution Overview
Problem
Candidates in asset management face challenges in proving their performance without revealing proprietary information, and employers are concerned about the authenticity of track records, leading to the need for a secure and reliable verification method.
Innovation Solution
A system that hashes a portfolio file and stores it on a distributed ledger, allowing users to verify the authenticity of their portfolio data by comparing hashes at a later time, ensuring secure sharing without revealing sensitive information.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a candidate shows their track record to prove capabilities, then the employer can verify performance, but the candidate's proprietary information may be revealed and stolen
Solution Approach 1:
The patent extracts only the essential verification element (hash of portfolio file) from the complete portfolio data, storing it on blockchain while keeping the actual proprietary information private. This allows performance verification without exposing sensitive trading strategies or model details.
Solution Approach 2:
The patent introduces a hash function as an intermediary that transforms the portfolio file into a unique identifier stored on blockchain. This intermediary enables third-party verification of performance authenticity without allowing direct access to the underlying proprietary information.
2Reliability
If expensive audits are used to verify capabilities, then the authenticity of track record can be confirmed, but the cost becomes financially inaccessible to most candidates
Solution Approach 1:
The patent enables candidates to self-verify and prove their own capabilities by storing portfolio hashes on blockchain themselves, eliminating the need for expensive third-party audits. The decentralized nature of blockchain allows any candidate to independently establish verifiable proof of performance.
Solution Approach 2:
The patent creates a cryptographic copy (hash) of the portfolio file that can be stored and verified on blockchain without requiring physical audits. This digital copy serves as sufficient proof of authenticity, replacing expensive human verification processes.
3Loss of information
If the candidate keeps proprietary information hidden, then security is maintained, but the employer cannot verify the authenticity of the track record
Solution Approach 1:
The patent replaces traditional mechanical verification methods (showing actual portfolio files, hiring audits) with cryptographic verification using hash functions and blockchain technology. This substitution allows verification of authenticity while maintaining information security through mathematical rather than physical means.
Data Source
AI summary
This disclosure relates to systems and methods for verifying asset management performance. The method involves algorithmically obtaining key data, such as a name identifier, portfolio identifier, research data, type, and a file containing portfolio details. This data is encrypted, and the file is hashed using a hashing algorithm to create a unique file hash. The method then creates an entry in a distributed ledger that includes the file hash at a specific time. Later, the same file can be received and verified by a second party comparing its hash to the ledger entry to establish its authenticity. The verified file, its status, and the initial time of entry are then displayed on a screen. This process can be repeated multiple times to maintain a live, continuous track record of the portfolio's performance over time, ensuring accuracy and transparency.