An increasing number of companies, tech developers, and researchers have been turning to bitcoin for technological inspiration. This should come as no surprise given bitcoin’s dramatic rise and the fact that it accomplished something that would have been nearly inconceivable just a decade ago: establishing an all-digital peer-to-peer currency.
Now the NASDAQ trading exchange, which operates one of the world’s largest and most valuable stock exchanges, is looking to bitcoin for some inspiration of its own. The NASDAQ is examining ways to use bitcoin’s blockchain technology to process and track stock transactions, which could potentially lower the costs of said transactions dramatically. And not only is the NASDAQ looking to use bitcoin tech, the exchange wants to be the first stock exchange in the world to do so.
Nasdaq Chief Executive Officer Bob Greifeld even went as far as to claim that blockchain technology “of fundamental importance to Wall Street.” So what’s so special about blockchain tech? It allows for low-cost and decentralized compiling of massive amounts of data, and is especially useful for tracking long logs of transactions. The blockchain has already allowed bitcoin to self regulate itself and to track all transactions and the location of all bitcoins in circulation.
So what then is to stop blockchain tech from doing the same for stock markets? Perhaps nothing. Each day countless financial transactions are completed on stock exchanges around the world. Stocks are bought and sold at a ridiculous rate and currently the NASDAQ and other exchanges have to rely on expensive centralized processing power and a small number of exclusive financial firms to process all of the transactions. If the ownership of stocks is somehow lost in the mix, the entire viability of the stock market could come under fire. Blockchain tech could
Originally appeared at: https://99bitcoins.com/nasdaq-vows-to-be-first-exchange-to-use-bitcoins-blockchain-tech/