Finance News

What are traditional trusts and how is Eternal Trusts different?

Trusts are something that most people have a general idea about, but not many fully understand exactly what they are or how they work. The simple explanation of trusts is that they are a way for people who have accumulated wealth over the course of their lifetime to then distribute this wealth to others over the coming years and generations.

The easiest longer explanation is to break down the Trust into the three key relationships which define it. On the one hand, we have the person who has the original wealth (known as the settlor). This person usually does not have the time or patience to manage their own wealth, but they also realize that this is necessary if they are going to provide for their future generations (the beneficiaries). What they then do, in essence, is place their money into a bank account that will be managed for them. The person who is given responsibility to manage this money for future generations is known as the Trustee, basically because the settlor trusts them to make sure the money is put to its intended future use.

Trusts have operated in exactly the same way for a very long time but in recent times an exciting new player has come into this sphere. As technology and medical science advance at rates unprecedented in the history of mankind, a growing number of individuals are now thinking well beyond their own life times when it comes to the future management of their wealth.

Eternal Trusts, the company that leads the way in this new disruptive movement, is lead by a team of experts with decades of experience in trust fund establishment and asset management. The goal of Eternal Trusts is to revolutionize the entire Trust landscape by bringing it onto the blockchain. Introducing the blockchain into this world makes “trust” even more trust-worthy than it has ever been before. The whole process becomes decentralized rather than solely controlled by the trustees.

This decentralized feature of “eternal” trusts is key to the trust revolution. By building the platform on the blockchain, trusts can now can exist for centuries, all the while seeking the best providers to perform the purposes set by originators, be that in supporting family, managing assets, contributing to charity, or even extending life of the settlor.

After being entrusted with the realistically feasible hopes and aspirations of their clients, Eternal Trusts guarantees the future delivery of the trust-maker’s aspirations by placing the management of the trust into the hands of the “ET Oracles”, consisting of experts, organizations, and AI-algorithms. As soon as future solutions appear on the market, the Oracles verify the contractor’s reliability and invite them to enter into smart contract deals on the ET platform.

The trusts guaranteed by Eternal Trusts are similar to traditional trusts only in that they feature a trust agreement and are legally binding. On top of these basic components, Eternal Trusts radically differs in that the trusts they manage are decentralized and feature secure data storage. These new kinds of trusts are also irrevocable and can be employed for an extensive range of purposes that go way beyond the scope of traditional trusts.

As the Eternal Trusts’ platform develops organically over time, the processes needed to implement the purposes of the Settlor will become more and more autonomous; potentially to the point where it could negate the need for any human involvement in the trustee role. This radical movement allows this brand new type of Trustee to make much more optimal decisions and to have the ability to fulfill much more complicated purposes than those which could be realized by traditional trustees. In this way, Eternal Trusts are looking to truly revolutionize an industry that has stayed unchanged since the Middle Ages!

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