Blockchain is a method of recording data via a digital ledger of transactions, agreements, contracts or anything that needs to be independently recorded and verified as having happened. The ASX has been working with the US-based blockchain startup Digital Asset Holdings to develop the new system since January 2016.
The new system has been in development and testing for more than two years and aims to cut the cost of transactions, and make them faster and more secure. A timeline for the transition to the technology will be given by March 2018.
The success of the ASX system will rely on it being encrypted to be fully secure, however if it can be hacked, “it’s game over for blockchain”, exchange representatives said for BBC.
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