How Blockchain Could Fix Frightening Stock Market Instability
Amid the current tough economic times, stock market instability is a serious concern. An uncertain tomorrow makes investments in stocks a risky option. Regulators seem incapable of detecting anomalies before they blow up into a nightmare for investors.
Despite advancements in technology, the stock market runs on the same model it did centuries ago. But unknown to many, a better way to manage stock market instability and promote transparency does exist.
Blockchain to the Rescue
The blockchain is set to revolutionize how stock exchange transactions operate. By eliminating intermediaries, championing transparency, and safeguarding the privacy of its users, it’s easy to understand why many consider blockchain the next step in our internet revolution.
The blockchain’s utilization of data mining tools, smart contracts and other analytical tools help recognize underlying anomalies such as creditworthiness. Add that to the ability of blockchain technology to eliminate intermediaries and enable the direct transfer of shares between investors and you have a system that is nearly flawless. This makes a traditionally long process shorter, more efficient, cheap, and secure.
Blockchain technology’s biggest selling point, however, remains the ability to be transparent and secure, reducing the chances of market hysteria due to information availability.
That same information availability also allows third parties to more easily identify and quantify risks. A problem identified is a problem half solved!
Blockchain technology’s tentacles of reach are extending beyond cryptocurrency to the stock exchange and currently to the banking industry.
Blockchain-based platforms such as Etherecash are set to change the banking concept by eliminating intermediaries, borders, and prejudices. Through its use of Smart Contract technology, which is lawyer backed, Etherecash aims to improve transparency, security, and reliability by providing peer to peer loans backed by crypto. Imagine a world without banks and financial transactions without annoying banking fees. Now that is revolutionary!
The Future of the Stock Exchange
Globally, a trend towards blockchain use in financial transactions is taking root. The Australian Securities Exchange (ASX) has already acquired Digital Asset Holding, a US-based developer of blockchain technology, joining other regulators and businesses keen to buy into the technology which propelled the cryptocurrency bitcoin to unprecedented success.
The blockchain revolution is already going global. The Korea Exchange, in collaboration with Blocko’s blockchain technology, intends to use blockchain to allow the trading of equity shares of startup companies on the open market. The Japan Exchange Group, on the other hand, are testing the potential of blockchain technology for trading in low transactions markets.
The rapid spread of blockchain technology points to a future completely dependent on it for all financial transactions. Of immediate concern, however, is the adoption of blockchain in the stock exchange market. It could prove to be our only hope for a more stable, transparent, and efficient stock market.
An investment in a blockchain technology company such as Etherecash holds the most potential for wealth generation going forward. It is an investment in the future whose returns may surprise you sooner rather than you think.
Purchase our Etherecash token through our ICO from November 15th, 2017. Developed on the ERC20 blockchain technology with lawyer backed contracts, to make blockchain backed lending and fund management, private and seamless.
Buy our tokens now. Visit Etherecash.io.