ASX Adopting Blockchain Technology
ASX or Australian Securities is the primary security exchange for Australia. It is also referred to as the Sydney Stock Exchange outside of Australia.
Jiten Achary New
ASX or Australian Securities is the primary security exchange for Australia. It is also referred to as the Sydney Stock Exchange outside of Australia. The headquarter of ASX is situated in Sydney. It was built through a merger of Australian Stock Exchange and Sydney Futures Exchange. It was formulated in 1987 and incorporated under the legislation of the Australian parliament. Currently, it has $4.685 billion turnovers with a market capitalization of $2.6 trillion. This makes it one of the world's top listed exchange groups. The stock exchange also acts as market operator, clearing housing and payment facilitator and provides educational material to the retail investor. It offers equities, futures, options, warrants, ETFs, and REITs along with other securities.
ASX could soon announce their adoption of blockchain technology. It will be the first major bourse for this kind of adoption. It is kind of a similar technology that underpins the bitcoin cryptocurrency. This process keeps all the records of shareholdings and manages the clearing and settlement of equity transactions. The blockchain is also known as a distributed ledger that shares the ledger to keep permanent records of the transactions.
ASX is adopting the service of the blockchain. The blockchain is a type of digital ledger for a transaction; recording data, agreements, contracts or anything that is important for the independent record function. The only divergence is this ledger is never stored in one place but distributed in several computers across the world.
Being the first mainstream equity marketer, ASX is adopting the technology that has been resided behind the bitcoin as its core service provider. Therefore it is going to replace decades of old settlements and clearing system. The system is also known as Clearing House Electronic Subregister System. By the help of this technology, it reduces the cost for customers.
Benefits of Blockchain Adoption
Many professionals believe that adopting the blockchain service will save millions of dollars. This cost saving process will encourage the investors and traders for a long-term settlement process. Investors Hangout has a stock message board section for ASX which really helps with researching. The blockchain follows the append-only database structure that keeps records of financial transactions with unique ID codes, that is known as a hash, which is auto-generated by the system. This process enhances the verification of transaction databases. This approach also makes it possible to work with identical copies of a single database with guarantees every copy will remain same. Implementation of blockchain technology will also ensure security and encryption process. Blockchain uses computers that have an advanced form of encryption process to trace transactions providing confidence to the buyers and sellers. For this, investors will feel more encouraged to invest in the stock market without any stress.
ASX has a plan to launch blockchain technology adoption systems by March 2018. The stock market will consult about this acquisition process with their stakeholders. The CEO of Digital Asset quoted that it is going to be the first meaningful proof for a technology which is going to live up to this potential. So this advancement process will take Australia to the front position of digital innovation in financial markets. This will keep strengthening their financial system through greater efficiencies. To get more information before investing in the stock market investors should visit Investors Hangout stock message board.