Bitcoin cryptocurrency popularity continues to rise, but in addition to all these efforts to achieve that this badge will become an excellent alternative for all kinds of scenarios, there are other applications that go even further than this concept. and the secret of all those applications is in blockchain, one of the main pillars of this cryptocurrency that you already gave all the details at Engadget.
Now the Nasdaq wants to take advantage of that technology to evaluate their behavior in a part of its operations. The NASDAQ Private Market, a market that started in January 2014 to manage operations for the sale of shares that private companies previously made to an IPO (initial public offering, IPO in English). The features and services of blockchain are especially suitable for this type of management, which will now have to pass a delicate test.
Advantages clear, but also potential problems
As indicated in The Wall Street Journal, private companies manage such operations of sale and transfer of shares with very informal systems such as spreadsheets handled by lawyers that verify each transaction by hand. Nasdaq wants to try to replace this management technology that is bitcoin base, which allows check the provenance of each transaction, verify, and validate it so there are no problems. And not only that: there would not be banks or other intermediaries in the operation.
The use of blockchain would make it possible to solve one of the major problems of the current transactions in which the structure known as T+3 is used: the final transfer of funds and guarantees occurs three days after the original transaction (T+0). Those transactions in real time they are the target of regulators and investors who also seek to reduce risks and release vast amounts of money that are tied to these processes during that time as well.
Even so there are potential problems for the adoption of blockchain in this field. Regulators are concerned about the anonymity of those “bitcoin miners” that manage those processes of verification and validation automatically and decentralized. Some believe that potential crooks could try to dominate that network to be used for their benefit. It is not known if the immense volume of the transactions of a stock market like this – although the NASDAQ Private Market is much more small – can be managed by the current infrastructure that exists in the bitcoin network.