The Australian Securities Exchange (ASX) recently announced that it would be adopting the blockchain technology to run its trading platform. Blockchain technology is that which is powering the cryptocurrency space. The main advantage of this technology is that it is not centralized. Thus, it provides continuous connectivity and seamless transactions as well as transactions which are verified before being executed. Australia is the second this week, after France, to announce a blockchain-based trading platform.
The ASX, however, has been designed to the platform which would use the distributed ledger in order to replace the current system which is based on settlement and clearing. The exchange has partnered with the digital asset holdings which is a start-up in the blockchain space and is located in the United States. But the companies have tested the blockchain technology on the trading platform and are finally of the opinion that the blockchain based trading platform can be brought online.
The main advantage of using the blockchain based trading platform is that it would reduce the transaction cost significantly. Also, it provides a secure private network for the transactions to take place which improves the security as well. Moreover, since the transactions would be verified pretty quickly, the settlement would be done quite quickly as well.
The ASX plans to launch this trading platform from March 2018. According to the CEO of Digital Asset Holdings, Blythe Masters, the launch of this particular platform is evidence that the blockchain technology can be used in a wide variety of other applications as well.
As the usage of blockchain technology becomes more and more mainstream, the value of blockchain based cryptocurrencies are increasing significantly as well. Recently, the value of Bitcoin went over $ 17,000. Many of the cryptocurrency experts are equally baffled by the astronomical rise in the value of Bitcoin. Also, people are of the opinion that since the futures of Bitcoins have been launched now, there would be a significant crash in the Bitcoins value. However, as the usage of blockchain technology increases more and more, the attention which Bitcoins, as well as other cryptocurrencies, are gaining is also increasing. Due to this very reason, even the normal investors are jumping on the cryptocurrency bandwagon in order to invest in cryptocurrencies like Bitcoin. This is fueling a consistent rally in Bitcoin as well as other cryptocurrencies.
Even though most of the companies in the financial space are still skeptical about Bitcoin, it and other cryptocurrencies, have their own backers as well. It remains to be seen how successful is the launch of the platform that is based on the blockchain technology. One thing is for sure is that the applications of blockchain technology are increasing day by day.