Finance & Blockchain (Wk 7 reply)
Question Description
Reply for below 2 discussions each reply should be 50 words.
1.
A number of comparisons are being tossed throughout regarding the innovative potential of blockchain technology, including connections to the printing press, steam engine, antibiotics, and the internet. Despite high-level reports of societal development, there looks to be no true historical resemblance to match the increasing influence and future implications of blockchain technology, particularly in how transformative it could imply for global capital markets.
So what performs blockchain such a game-changer? When concentrating on contemporary trends within the space, despite the unexpected observer involved in financial use cases is most frequently induced toward the notion of Digital Security Offerings (DSOs) (Rohr, 2018).
At its most fundamental level, a digital confidence is a digital representation of an equality or debt confidence that can be purchased and sold online. It is recorded on a blockchain-based distributed ledger. A DSO is offering digital securities to regularly geographically-disparate investors who then exchange them on subsequent market platforms, which in turn produces liquidity to their global equivalents. One of the most engaging, impactful, and truly innovative developments that the term convenience encapsulates dSOs proposal, sometimes referred to as economic democratization. There are two primary components to this: time also geography.
At present, popular stock exchanges are connected more hours a week than open (Eyal, 2017).
References:
Eyal, I. (2017). Blockchain technology: Transforming libertarian cryptocurrency dreams to finance and banking realities. Computer, 50(9), 38-49.
Rohr, J., & Wright, A. (2018). Blockchain-based token sales, initial coin offerings, and the democratization of public capital markets. Hastings LJ, 70, 463.
2.
The blockchain technology different characteristics like decentralization, transparency of the transactions, traceability of the transactions, and distributed ledger will transform the capital market. The accessibility will increase in the capital market as the trading can be done at any time it will not be a time constraint. There will be no geographical barriers with the blockchain technology in the capital market due to the blockchain decentralized characteristic, the investment can be done in the capital market from anywhere in the world with the use of blockchain technology. The transparency will increase in the capital market with blockchain technology, it will prevent fraud and theft which will improve the overall experience of the securities ecosystem.
Reference
Hussain, S. S. (2019, April 9). 3 Ways Blockchain Will Transform Capital Markets. Retrieved from nasdaq: https://www.nasdaq.com/articles/3-ways-blockchain-… – capital-markets-2019-04-09
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