Bitcoin is indeed the most popular blockchain in today’s digital market. However, according to many experts, it is also very unimaginative. In 2017, the market finally saw a dynamic growth in the blockchain by including game-changing tech and infrastructure. The new infrastructure has helped the investors assist movement of value and manage the identities of buyers and sellers online.
Blockchain and ASX: A new relationship is on its way
The Australian Stock Exchange has finally included modern technology to incorporate and use blockchain based systems to record the investors and shareowners of the ASX200 companies. It will help the ASX keep a tab on the buyers and sellers in the stock market. The increasing demand and price of Bitcoins over the last couple of years have been instrumental in bringing about this change of decision.
For those who are still new to the term blockchain, it is a distributed or public ledger. You can easily imagine it as a spreadsheet holding all the stock information that is available to each user. Understandably, this will be a cloud system that will make it accessible to numerous computers across the country and the globe. So, when someone does transfer a Bitcoin, the system will instantly update the spreadsheet data. The system will verify the transaction, encrypt the transaction data and add a new column of information to the spreadsheet.
New technology to hasten error-free transactions
The ASX blockchain is set to replace the ASX CHESS system. CHESS stands for Clearing House Electronic Sub-registry System. At present, ASX requires each payment verification against the central database of ownership records. It also includes reconciled payment records. The trade usually takes place within the blink of an eye, thanks to the state of the art transfer systems. However, the updating process takes quite a few hours. The actual clearance, settlement and share update is rather elaborate and laborious. It is also subject to human error, and it is even an expensive process for some.
The upcoming ASX blockchain will restructure the process and smoothen the kinks out. It will make the information update about transactions much faster. The Australian financial market will become more streamlined and secure than before. Experts are foreseeing a thriving economy from the introduction of this integrated and seamless updating process. Since the availability of this technology will extend to global exchanges, the implementation of the blockchain infrastructure at Australia's significant exchanges will give them an upper hand over other exchanges in different locations. It will lead to more businesses coming to Australia, and this will lead to new job openings for the citizens.
It will help in better wealth distribution and management. It brings forth the possibilities of new products and services for the everyday consumers in the Australian market. It will benefit the broader financial markets. The introduction of ASX’s new blockchain technology is a pioneering move towards a technological transformation of Australia's current economic situation. It is true that the much-lauded Bitcoins and the blockchain technology are here to change the way people perceive stock markets and share prices.
Article by Jack Dawson
