In the end 2015 of the year, on the eve of new year holidays, CEO of online retailer Overstock.com Patrick Byrne, announced, that the US Securities and Exchange Commission approved his blockchain-based share issuance plan. Patrick Breen's statement became a sensation, и финансовый мир spoke openly о возможностях применения блокчейн в индустрии.
Technology cannot be called innovative: product, ради которого она была создана — cryptocurrency биткоин — известен миру с конца 2008 of the year. but, официальное разрешение на применение механизмов блокчейн на рынках ценных бумаг эксперты Found переломным моментом в истории мирового финансового рынка.
Supposed, what, through the use of cryptographic algorithms, independent computers working in an extensive network, blockchain will help to more accurately and openly control stock trading, bonds and other securities.
Blockchain from Wall Street
Largest Wall Street Securities Regulator, Depository Trust holding & Clearing Corporation has expressed a desire to unite financial industry organizations for joint development of blockchain-based software. “Once in several decades, the industry has the opportunity to change: we must rethink the infrastructure and solve its long-standing problems ", - said DTCC President and CEO Michael Bodson - “to fully realize the potential of the new data distribution system and avoid confusion, the whole industry should work on it, как слаженных механизм».
Depository Trust Holding & Clearing Corporation started a big business and became the first financial institution, openly made a similar proposal. DTCC is co-owned by major financial institutions on Wall Street and beyond. "The financial industry has taken over us", - says the chief IT architect of DTCC Robert Palatnik - "and all our actions are a reaction to its challenges".
In other words, if in Depository Trust & Clearing Corporation is able to accept blockchain, then Wall Street itself will be able to accept the new technology. Michael Bodson's statement reflects more than just his company's intentions, but also many other financial institutions. And since the DTCC controls the actual state of securities after transactions on the stock exchanges, the corporation is in the best position to, to start the blockchain revolution.
"DTCC aims to be the organizing center of the financial industry for blockchain advocates," notes Josh Galper, head of the consulting firm Finadium, whose employees pay great attention to the formation of blockchain technologies. DTCC, according to the expert, helps major market players to mobilize and join forces to introduce blockchain technology to the securities market.
This approach is rather ironic.. And the DTCC itself, and industry, on behalf of which the company speaks, take a step towards technology, which could potentially destroy them. Probably, Wall Street players have learned well the lesson of bankrupt Silicon Valley companies: “Taming” your biggest threat is the only way to prevent collapse.
Additional control of the financial market
Online retailer Overstock.com executive Patrick Byrne may also state, that the activities of the DTCC holding became one of the main reasons for his company's attention to blockchain - the only real way to democratize and rationalize the financial market.
For several years, Byrne complained to the authorities about the loophole of Wall Street financiers - “naked short sales». Part of responsibility for cases of legal fraud with "non-existent" shares, according to Byrne, lay on an ineffective market regulator - DTCC. In the case of "electronic" securities, data about which the blockchain reliably stores, there will be no loopholes for scammers, уверен эксперт.
Of course, Depository Trust management & Clearing Corporation denies Byrne's accusations. but, employees of the company are aware, what technology opens the door, which could ruin their business. It is for this reason that it is impossible to predict in advance, how far DTCC will go in its "adoption" of a potentially dangerous technology for the company. but, учитывая огромный потенциал blockchain и рост доверия к технологии around the world, the holding controller will not be able to accept the innovation "to a certain level". DTCC is now one of the software sponsors, which will demonstrate the benefits of blockchain technology to the business world.
Software development
The Linux Foundation is a non-profit organization, developing the Linux operating system, became the curator of work on the creation of an "alternative-blockchain". Software development by analogy with the already existing network "ledger", created to strengthen the bitcoin cryptocurrency, was named "Project Hyperledger". The initiative was also supported by such large technology and financial companies as IBM, Intel, Cisco, JP Morgan, Wells Fargo and the London Stock Exchange.
"Immutable truth"
As stated by Robert Palatnik of the DTCC, cooperation and unification are the most important tasks for this organization. “Many companies have researched blockchain, to understand, is this technology suitable for financial markets ", - explains Palatnik - “But what is really needed, so this is joining efforts to create electronic systems, who will work in each of these companies ". Large financial institutions conducted independent blockchain research, but DTCC officials consider this analytical work "contrary to common sense".
Considering the "distribution" nature of the blockchain, a collaborative approach to developing and using technology seems like a very sane idea. Companies, which runs a "blockchain-like" operating system within itself, innovation is unlikely to do much good.
Реальная мощность блокчейн как «распределенной бухгалтерской Books» is that, that it is outside the control of any organization and retains that, what Robert Palatnik calls "the only undisputed version of the truth". Over the years, Wall Street relied on DTCC, and a single supervisory organization tracked the consequences of many transactions. Thanks to the blockchain, the truth will be stored by a network of machines and all interested parties will be able to verify the data on the electronic ledger.. At least, in theory.
Who, how much and when
Patrick Byrne believes, that blockchain will help reform many markets. According to the head of online retailer Overstock, technology will help democratize the securities loan market.
In the modern world financial market, about $ 1,7 trillion in securities accounted for by "loans". By borrowing shares, traders can exercise naked shorts (short sales) or hedge your financial risks. Byrne is extremely unhappy with, that this market is controlled by a relatively small number of financial institutions (for example, State Street Bank), motivated exclusively by personal needs. According to Patrick Breen, blockchain technology can open the securities loan market and will allow you to closely monitor - "who", "How much did it take" and "when".
Many look at similar ones with skepticism.. Maybe, the securities lending market is not so hopeless, and Patrick Byrne's suspicions are unfounded. However, investment bank State Stree is one of the main regulators in this industry, also joined the Hyperledger project.
Not so simple
Nevertheless, no one can guarantee, что Depository Trust & Clearing Corporation will bring work on the blockchain to its logical conclusion. Finally, full implementation of technology hello, that Wall Street's interest in DTCC services is dwindling.
It is worth noting, that the "Project Hyperledger" initiated by DTCC does not reproduce the blockchain thoroughly, - that system, what is at the heart of Bitcoin, assumed network communication of hundreds of independent machines. In the "processed version" financial institutions can use their computers. “One system is really more desirable,»- says Robert Palatnik, discussing the possibilities of creating one public ledger, which will be available to all market players. But more realistic, according to the expert, is the option with the establishment of uniform standards, which will allow various financial institutions to connect their private blockchain bases to each other.
This is somewhat contrary to the idea of finding a "single and indisputable version of the truth.". But it's important to understand, that a bright blockchain idea also has its limits. Too many market participants are still sitting behind the closed doors of large banks. Even if the industry really brings the technology to its logical conclusion, blockchain can still crash against the wall of human inertia, mistakes and greed. Wall Street Players, in the end, follow the money, not for ideas.
Today, In many cases, settlement of exchange transactions takes three days. Trades are carried out instantly, but whole 96 it takes hours, to actually close the deal itself, transferring shares to the buyer. Blockchain, according to Patrick Byrne, can reduce this period to a minimum. Closing the "temporary gap" could save banks billions of dollars in cuts in capital spending. But the financial industry may not want to go that far..
"Too much in the financial world happens regardless of technology.". - notes Josh Galper. Machines are capable of ensuring a well-thought-out and logical functioning of the market, but people can still complicate things.
Original : https://habrahabr.ru/company/itinvest/blog/305006/
