The Chief Executive of Wall Street has finally cleared the house and is set to redefine the blockchain technology. He has stated how Wall Street is go
The Chief Executive of Wall Street has finally cleared the house and is set to redefine the blockchain technology. He has stated how Wall Street is going to be entirely different in the future. As quoted by the regional press, Micheal C. Bodson had mentioned about a collaborative project with IBM, where they attempt to bring up a blockchain inspired software in the place of a back end database. This software is likely to run by 2018.
Proving the power of Blockchain
This project is being developed in order to be used by the Depository trust and the Clearing Corporation which is responsible for handling the reports of every possible stock and trade moves made by the US. Likewise, it also plays a vital role in recording the trading of all valuable derivates.
According to Bodson’s statement to the Reuters, this project will definitely prove how powerful the blockchain technology is. The entire industry will witness this.
Being completely devised by the legacy of all leading financial institutes, there is a small coyness on the idea of introducing any specific decentralized concept to the organs of Wall Street.
For instance, there is a familiar talk from the so called distributor ledger and this is still available. This is probably the best euphemism of the bank based finances that employ blockchain in a centralized way.
Bodson described that these implementations that are likely to be used by the DTCC, are just one particular version of the truth that every person shares, accesses and utilizes.
According to him, this is one of the most tangible steps that could bring an entirely different future for Wall Street.
A bold move
Irrespective of the pros and cons, this is indeed a bold move and it is also probably the biggest step from the end of US and the global financial hubs about embracing new ways to conduct business. For instance, the DTCC itself came with $11 billion default credit swaps passes under its 2016 jurisdiction. This is roughly equal to about 80 percent of the entire volume on a global level. The success of this venture will be highly looked forward by prototype institutions across the globe.
It is also undoubtedly true that a similar test in 2016 came up with such amazing results that the full scale level of implementation was set in complete motion. The test demonstrated that the distributed ledger technology had the power to handle every type of event while processing the requirements of default credit swaps. It also revealed what exactly could be done with the existing infrastructure.