Blockchain Technology in Stock Exchange
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Blockchain Technology In Stock Exchange
Will blockchain technology be the most significant disruption of the last three 
centuries in the stock market industry? Well, Norbert Biedrzycki -Head of Services 
CEE at Microsoft says so, and so does blockchain council. Blockchain 
technology has been able to significantly change the dynamics of money, supply 
chain management, finance, record keeping, and more. Along with supporting 
crypto-currencies such as bitcoin and ethereum, it can revolutionize both the 
storage and transmission of financial data around the globe and stock trading 
marketplaces.
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Learning of the blog
 
● What is blockchain technology?
● How is it useful to the stock market?
● Advantages that it brings
● Early accessors
● Future Scope
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What Is Blockchain Technology
Blockchain is a database innovation that provides a shared public register where 
all parties can track and encrypt transactions. This register consists of nodes, and 
each node is a computer that follows the protocol. Blocks are public, but its 
contents can be protected by cryptography. A new block is added every time a 
token transaction is confirmed. 
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There are private blockchains in which access is by permission only, and in-house 
nodes verify the transactions. On the other hand, public blockchains, as you must 
have guessed, are open access. Another type is permissioned public blockchains 
that retain the volunteer verification but has restricted access.
 If you want to know more about blockchain, you can check out this 
blockchain course!
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How Is It UseFul To The Stock Market
The stock market is a mammoth creature with very high inertia. Blockchain 
technology can prove fruitful in clearing and settlement alongside securing 
automation of the post-trade process. It can speed by the settlement of trades and 
subtly go about stock exchanges with the help of automation and decentralization.
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According to a Blockchain in Capital market's report,  "IT and operations 
expenditure in capital markets is currently close to $100-150 billion per year 
among banks". Blockchain can reduce extra commission costs by eliminating the 
third party regulator as the blockchain network does the needful. Thus, it can 
answer trust, interoperability, and transparency issues.
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Advantages That It Brings
The advantages that blockchain technology brings along are:
 
1. Decentralization: As the system is distributive, money is not present at one 
node.
2. Transparency: As technology is in public eyes, it brings in trust.
3. Cost Reduction: Since there are no intermediaries, the cost gets reduced.
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4.Security:  Blockchain can act as an automatic surveillance system, and the 
valuation of securities deposited can be done daily.
5.Less time: The transactions are quick, as there is no duplication of the process.
6.High Liquidity: Blockchain reduces ineffectiveness with the help of automation, 
ultimately bringing in more investment.
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Early accessors 
 The New- York-based firm Nasdaq which operates at the junction of finance and 
technology, was one of the first to adopt bitcoin technology, thus advocating the 
demand of blockchain professionals.  
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 It now enables investors to harness blockchain's power by securely navigating 
financial markets at an international level. To register all transactions in real-time, 
Nasdaq Stockholm and the Swedish bank SEB started testing blockchain.
 
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The London Stock Exchange Group, in collaboration with IBM, is testing a 
blockchain platform to fully digitize trades in the shares of medium and small-
sized enterprises. Apart from this, the NYSE and Deutsche Borse would be 
evaluating the feasibility and advantages of the technology soon.
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Future Scope
 Due to less testing, there are some scalability issues with blockchain, so to 
disrupt the operations of the stock market, it can take up to ten years, but it does 
have the potential to transform companies and the society. 
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It is a great investment opportunity because of its ability to tackle data 
fragmentation, insider trading, data loss, reconciliation, and ticket matching 
problems.
Thus. Blockchain technology can bring about the widespread upset in automated 
market surveillance and post-trade event processing.
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Blockchain Council Certifications
You can check out our certifications, and kick start your career in the Blockchain 
space today.
● Certified Blockchain Expert
● Certified Blockchain Developer
● Certified Smart Contract Developer
● Certified Solidity Developer
● Certified Ethereum Developer
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THANK YOU!
Any questions?
You can mail us at
[email protected]
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