Asset management firms are crucial to the global financial ecosystem as they provide an easy way to investment for those who are not well-versed in the field. However, like all centralized intermediaries, asset management firms are known to exploit their consumers. They are also usually better suited for wealthy clients; hence, creating barriers to entry for the masses. The blockchain technology’s selling point is its decentralization. Financial crises have been caused due to the inefficiencies of centralized institutions which is why more and more people are flocking towards the crypto market.
The crypto market faces similar problems of the traditional asset and commodities market in terms of investment. Not everyone is a seasoned investor and the masses cannot resort to traditional asset managers for investing in the crypto market. Hence, Enzyme was created to fulfil the gap.
What is Enzyme?
Enzyme is a decentralized asset manager for cryptocurrencies. The project was conceived by a former Goldman Sachs vice president, Mona El Isa, and a mathematician Rito Trinkler in 2016. In 2019, the firm Melonport dissolved handling management and control to Melon Council – a decentralized autonomous organization. Hence, the project is completely decentralized now with the council operating through smart contracts.
Enzyme is based on the blockchain of Ethereum with all fees paid in ether. It is essentially a blockchain-based software. Enzyme has two layers: the Fund layer and the infrastructure layer. The infrastructure layer is controlled by the DAO and has various different kinds of smart contracts enabling the operation of the fund. The fund layer is where users can launch their own funds and control the funds that others invest in. The fund layer has a Hub which provides all the essential tools for launching and a fund and the Spokes which enables the use of smart contracts for the fund.
Future potential
As the crypto market is flooded by an influx of new users, an offering like that of Enzyme can become crucial. It decreases the barriers to entry to the crypto market by enabling new users to investment easily. Hence, it is considered to have a good future potential.
At the time of writing, Enzyme stands at a price level of $133. According to the estimates of Wallet Investor, the cryptocurrency is expected to be operating at a price level of $240 in a year’s time while the five-year projection places it at $653 – an increase of nearly 400%. Digital Coin Price is also bullish in its predictions and projects a price of $474 by 2026.
