/biz/ - Business & Finance

>>24796244

When I started researching clearance and settlement of stock trades, was amazing how janky and wasteful the current process is. See this https://gendal.me/2014/01/05/a-simple-explanation-of-how-shares-move-around-the-securities-settlement-system/

by the CTO of R3, maker of Corda enterprise blockchain.

Basically like 10 different players each with their own records that have to be reconciled. whenever stocks trade hands. Takes like 100ths of a second to EXECUTE a trade but then it takes 3 DAYS for the shares to actually change hands, aka "settle."

Handling this with DLT and smart contracts seems BEYOND obvious. So, question to ask yourself is, when this goes live, and cost of trading on ASX goes down by 100 (or maybe 1000) and number of errors (which are super fucking costly to deal with b/c the require labor intensive reconciliation by players that do not trust each other) goes down by 1000, what does that do to place of Australian Stock Exchange in the world. How many stories in WSJ will be written about this?

What does THAT do for adoption of smart contracts and DLT in every other industry, with boards at Disney, and ExxonMobil, and you name it saying to CEO and CFO and CTO -- why the fuck aren't YOU jumping on this to get 80% cost savings.

All these bullshit stories in the press about how "everyone is over the hype of blockchain and it doesn't do shit" are TOTALLY fucking missing the point.

It's all right there. But it's going to start at the enterprise level.