Nasdaq to Implement Bitcoin's Blockchain Technology to Simplify Process of Trading Shares and Assets
FREMONT, CA: Nasdaq partners with Chain, a Bitcoin-based API startup, to implement the Bitcoin blockchain technology in its newly launched marketplace, Nasdaq Private Market. Nasdaq plans to utilize the colored coin protocol Open Assets based on the Bitcoin blockchain instead of developing an alternative blockchain or digital currency, reports Joseph Young for Bitcoin Magazine.
Chain is set to provide Nasdaq with the infrastructure and simplified API for the Bitcoin blockchain. This technology will simplify the process of trading shares and assets in Nasdaq’s pilot test. The process of trading shares on the stock exchanges has always required labor-intensive operations, from managing spreadsheets to the completion of documents and the approval of lawyers.
By keeping a record of shares being traded into blocks, it will be easier for Nasdaq to keep a track of activities on their network and provide solution to the long-time problems of stock exchanges by keeping data organized and accessible whenever needed. Bitcoin miners transform the data into an encrypted language comprising letters and numbers to maintain secrecy and privacy of the details. Similarly, by adopting this technology Nasdaq can keep valuable data safe and secure.
Bitcoin is a payment system having a currency of its own. People are doing transactions with Bitcoins all the time from the Bitcoin wallets on their computer. This necessitates maintenance of track or record of these transactions taking place in the Bitcoin network. Transactions are confirmed by the network within 10 minutes or so and this process is handled by Bitcoin miners who collect all of the transactions made during a set period into a list, called a block. A long list of blocks called blockchain is created that comprises transaction database shared by all nodes participating in a system based on the Bitcoin protocol. Whenever a new block of transactions is created, it is added to the blockchain. With this information, one can find out how much value belonged to each address at any point in history.