Global Stock Market on a Blockchain: A Dream or a Reality?


“Imagine trading stocks 24×7 and 365 days a year, a dream that is not far from being accomplished. The blockchain technology has started to revolutionize every market it is entering and the financial market is its core forte. After showing its capability to transform the financial system through DeFi, blockchains show a promise to transform the global stock market.”

Global Stock Markets are Centralized

At the current scenario, the global stock markets are centralized and work 5 days a week. There are intermediaries that your orders have to go through to be executed. This takes time and a huge amount of fees for just buying and selling the stocks no matter how small a transaction is. Also, to buy global stocks from a native country, there is a requirement of cumbersome paper work and online KYC process and there is always a limit of how much amount you can put in the foreign stocks. This sets boundaries for trading in the stock market and prevents many wonderful opportunities that the stock market can provide.

Can Blockchain Transform the Global Stock Market for Good?

Blockchain technology is a disruptive technology that has the capability of transforming many industries and markets. At its core, the blockchain technology promotes decentralization and imagines the global stock market to be open 24×7 and 365 days a year and orders being executed within seconds as in the crypto market at the present. This will completely change the rules of the game and people who have no access to the complex process of buying and selling stocks can quickly create accounts and start trading. The following are the reasons that can ensure moving the global crypto market to the blockchain:

Blockchain Technology Provides a Trustless Platform

As the blockchains are decentralized networks, they have top notch security and create a trustless platform for any app to build and operate upon. There will be a requirement of no intermediaries for the trade order to be processed and will be done through smart contracts making the process extremely fast and cheap. This will eliminate fraud and unnecessary control on trading.

The Blockchain Technology is Evolving Rapidly

The blockchain technology is right now in its infancy but is growing at a very rapid pace and it will be capable enough to make this dream a reality to rebuild the global stock exchange on a blockchain within this decade. With more and more scalability solutions in the pipeline with decentralized oracles providing real time data, the time is not far away we are going to see the change.

Some stock markets are already being migrated

The London Stock Exchange has already built a platform on the centralized blockchain of IBM whereas the Luxembourg Stock Exchange has opted for the decentralized Ethereum blockchain for fund distribution to its customers in a more efficient manner. This is a clear indication that the stock market is eyeing the disruptive blockchain technology for the migration.

Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.

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