Although the blockchain is enjoying a lot of interest right now, there are still a lot of questions regarding its viability. The Australian Securities Exchange Is experimenting with distributed ledger technology right now, In the long run, they will upgrade the entire system by switching to the blockchain. As was to be expected, not everyone agrees this is the best course of action.
ASX Will Forge Ahead Despite Criticism
When the Australian Securities Exchange announced its plans to transition to a blockchain-based infrastructure, there was a lot of criticism to deal with. In fact, the group is still dealing with a fair amount of opposition, as many people feel the technology is still immature. But that won’t keep the ASX from executing their plans.
It has to be said; any exchange platform can benefit a lot from embracing the blockchain. With this added transparency, lower overhead costs, and the option to complete transactions instantly, an interesting ecosystem is created. Moreover, the blockchain can provide the competitive edge the ASX needs to stay ahead of the other providers.
The ASX partnered with Digital Asset Holdings to trial distributed ledgers in a secure environment. This partnership also includes revamping the back office system, as the securities exchange is planning a significant technological overhaul in the coming years. It is evident the group feels blockchain technology is the future of finance.
It is due time the ASX revamps its technology, as their current system is 22 years old. Albeit the financial ecosystem has seen little to no innovation over the past few decades, the tides have changed in recent years. Accommodating new needs and improving scalability are two top concerns for any financial players right now.
One thing a lot of people have issues with is how the ASX did not properly consult users regarding the shift to the blockchain. While the company may not have done so, the consensus among brokers is how the ASX needs a uniform way to clear and settle trades.Blockchain technology seems to tick all of the boxes in this regard.
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