Management of private companies’ shares has for long been a costly, labor-intensive procedure that involved a lot of paperwork as well as spreadsheets, advocates and other times, filing of bank vaults and cabinets. In spite of all this effort, a lot of the things that were represented on the papers were usually out-dated. This is as a result of employees being laid off or due to them buying the stock that is motivating their options.
In the past few years, there have been several companies which have come up in order to introduce software which is in a position to manage the capitalization table of a company. This is simply a record of “who” really owns “what” in the company under consideration. This advancement has consequently replaced paper stock certificates as well as spreadsheets, paper convertible notes and paper options grants.
The blockchain is a kind of a shared distributed ledger which records and stores all digital assets. It also is the mechanism which parties can make use of in transferring those assets. This technology is set to be rolled out later this year on Nasdaq Private Market (NPM). It is the type of technology that underpins the currency bitcoin that is digital. The aim here is to create a much better model of corporate governance.
Chain Inc. has recently signed onto NPM where it is going to be the first to make use of the blockchain technology in managing its shares when NASDAQ finally makes the service accessible later on this year.
The reason why many companies are interested in the Bitcoin technology is because blockchain is superior to the software by far. This is because with the software, one has to incur a lot
Originally appeared at: https://99bitcoins.com/nasdaq-plans-to-introduce-blockchain-in-the-private-market/