Blockchain For Stock Market Trading

Blockchain Applications at Stock Market

• Implementing blockchain with smart contract will eliminate the need of a third party as the transactions, rules, regulations and everything in the stock market will be induced in smart contract. This will reduce operational risks to a great extent.
• Companies can issue tokens which can be built in-house, using blockchain. These tokens will have smart contract to automate the performance as per the functions defined at the time of its designing.
• Features like permissions to users , potential to drive promotions, transaction features and much more are embedded in smart contract to provide a wider applicability than the general stock on a stock exchange.
• When integrating tokens in the stock market, the market is not limited to investors alone, but also wide open to the token holders. This will help an enterprise to make huge capital for business.
• Time required to set up a token on blockchain, excluding ICO and marketing process is much lesser than the time consumed in stock exchange. Also, the present stock market involves more middleman and thus transactions become complex and takes at least 3 days to complete an exchange. Blockchain can eliminate this complexity and consume less time for an exchange.
• Beside time, trading on blockchain is faster than the traditional stock trading. This is because of the the features are built on smart contract and as new innovations come, it creates faster protocols that eliminates the speed limitations.
• Blockchain creates a decentralized database which is highly safe and has ability to store complete information about the token holder and history of transactions, which is missing in the current stock market system.
• Generally, stock exchanges offers only security type of listing to earn investors trust. But blockchain offers an ability to create utility cases for the tokens, to attract more investors.