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Recording Nasdaq Trades on Bitcoin Platform: How It Works


Recording Nasdaq Trades on Bitcoin Platform How It Works MIT Technology Review

Source: http://www.technologyreview.com/news/539...

Keeping track of a company’s ownership structure can be a complicated, time-consuming, and expensive task, especially for fast-growing startups looking to attract new investors. In many cases, companies manage their own data in a spreadsheet program like Microsoft Excel, and pay lawyers to validate the information every time the table changes.

Meanwhile, errors in this record can be costly, says Brad Peterson, Nasdaq’s chief information officer. “There’s really no great system in place to ensure that this is done accurately along the way and is auditable to the beginning of time,” says Peterson. He and his colleagues at Nasdaq think the blockchain can be essential to such a system.

To understand how this will work, imagine an employee wants to sell a percentage of her shares. Nasdaq’s existing service will match those shares to an investor who wants to buy them, facilitate the transfer, and update the record of the company’s shareholders. Now, for the few companies that have agreed to experiment with the blockchain, a “corresponding entry” will be made in the Bitcoin transaction record that would contain certain important information about the transaction, such as the timing and number of shares involved. Last month, Nasdaq announced that it has partnered with blockchain technology startup Chain to help it technically implement this part.

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There's a big part of me that feels like they should wait on trying to implement this. 

I'm probably being nervous about it for no reason. 

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