faizod: Australian stock exchange turns to Blockchain
Australia’s main stock exchange, ASX, announced plans today to roll out a timeline for adopting Blockchain next year in March. ASX will be the first in the world to adopt Blockchain for this purpose, providing proof that Blockchain will fulfil its potential in the financial sector outside of cryptocurrencies.
Blockchain to cut costs and add security
The announcement comes after two years of testing. Digital Asset Holdings LLC has raised over $115 million from large companies over the past several years and will supply the technology for ASX. Blockchain will be replacing technology called "Clearing House Electronic Subregister system," that has been around since the 1990s.
ASX started exploring the technology in an effort to cut the cost of transactions and make them faster and more secure. Blockchain acts as a clearing house, taking on the legal risk associated with a transaction and ensuring that a trade goes through. Cutting out the middleman will result in lower costs for traders and investors.
Two years testing proves Blockchain a good fit
Blockchain is a distributed ledger that stores data across hundreds or thousands of computers around the world, making it virtually tamper-proof. Someone seeking to manipulate data would have to successfully change 51% of all occurrences of data in order to forge one entry in the data bank. Blockchain makes data verifiable and provides a permanent and safe record.