Digital Asset
Investment Outline

Go To Risk Management
Arrow Right

Blockchain technology has the potential to transform every facet of society.

Blockchain’s capabilities are encouraging people to rethink entire industries, processes and how value is created and distributed. Blockchain is transforming the Internet and creating greater efficiencies for data validation, delivery and security. As a decentralized and distributed infrastructure, blockchain offers a complete restructuring of the world’s recordkeeping paradigm. For this reason, global demand for blockchain technology is growing among major enterprises, governments and institutional investors.

GraphicsGraphics

Enterprises


Major companies worldwide are adopting blockchain technology to improve efficiencies

Enterprise

Government


More than 200 government agencies around the world are exploring blockchain

Government

Financial Institutions


Large investment firms, banks and exchanges are investing in blockchain technology

Financial

Blockchain, or distributed ledger technology, has the potential to create radically new efficiencies and disrupt processes in ways not seen since the arrival of the internet. Blockchain represents a new paradigm for the way information is shared and secured. As blockchain demand increases, so does demand for digital assets. This in turn generates investment opportunity. DARMA Capital evaluates digital asset investment opportunities to define and develop institutional investment programs. DARMA has a process for identifying and qualifying which digital assets warrant a core holding in each of our investment strategies.

The development of digital assets presents investors with new opportunities and new risks not well understood by most investment professionals. Our team at DARMA has an exceptional combination of both risk management experience and a deep understanding of blockchain technology - this combination allows us to carefully analyze and assess digital asset and protocol developments. We focus exclusively on identifying digital asset investment opportunities and managing their inherent risks. Ultimately, risk management underlies every decision we make.


Our investment thesis is founded on our extensive blockchain research.

The web as we know it today is evolving from an infrastructure where value, or investment return, was mostly captured in the Application Layer to an infrastructure based on blockchain technology. In the evolving 'blockchain web', or Web 3.0, value is captured from the Protocol Layer.

GraphicsGraphics
Web 2.0 Today

Value is captured mostly from the Application Layer.

In today's Web 2.0, the TCP/IP PROTOCOL layer is free. Large centralized institutions in the APPLICATION layer profit.

Application Layer
Web 3.0 Evolving

Value is captured mostly from the Protocol Layer.

In the evolving Web 3.0, the PROTOCOL layer is peer-to-peer (P2P). The individual benefits and the decentralized PROTOCOL layer has value by supporting the network.

Protocol Layer
Web 3.0

As the internet today transforms into a blockchain-based infrastructure, protocols will emerge as a critical component for defining how computers exchange value with each other. In Web 3.0, no single entity owns or controls a record of data. Not only does the distributed architecture of blockchain offer more data protection, it also presents endless possibilities and new solutions for tracking data flow.

Before Web 3.0, the underlying protocol layer didn’t generate economic value for itself or its creators. Now, Blockchain technology and ‘cryptographic tokens’ allow the protocol layer to be monetized and ‘aware’ of the value it is creating. This monetization of protocol layers is a key driver for the paradigm shift from today’s Web 2.0 to Web 3.0. For this reason, value will be captured mostly from the protocol layers in Web 3.0.

The development of digital assets presents investors with new opportunities and new risks not well understood by most investment professionals. Our team at DARMA has an exceptional combination of both investment risk management experience and a deep understanding of blockchain technology - this combination allows us to carefully analyze and assess digital asset and protocol developments. We focus exclusively on identifying digital asset investment opportunities and managing their inherent risks. Ultimately, risk management underlies every decision we make.


Up Next: Our Risk Management

GraphicsGraphics

Get In Touch

If you are an institution currently invested or considering an investment in digital assets, contact us to learn more about our investment programs.

Join the Community

Join Our Email List