Blockstack Joins the Growing Number of Fintech Companies That Use the Blockchain to Streamline Mainstream Finance


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Blockstack, a San Francisco-based firm, is adapting the technology of Bitcoin for mainstream finance, including clearing and settlement.

According to the company’s website, Blockstack is a licensable software package to enable financial institutions and other enterprises to build sophisticated blockchain 2.0 applications on their own private blockchain.

Blockstack.io is a hosted version of Blockstack to allow anyone to start building applications on a fully-featured private blockchain. Available in private beta, Blockstack.io gives financial institutions a stack of inter-operable components to build on, including a private, hosted blockchain, a colored coin issuer for representing assets, a framework for smart contracts using oracles and multi-signature transactions, and the ability to plug in external open source components.

Blockstack includes critical functionality for financial services: managing time-dependent financial transactions like coupon payments for bonds, ensuring complex compliance requirements from multiple groups in an organization, and scaling up the infrastructure to handle millions of transactions at low latency.

The Blockstack platform is designed to work with technologies designed for Bitcoin Core. As improvements are made to Bitcoin, they can be rolled in Blockstack so that it stays current with the latest technology.

Blockstack joins a growing number of fintech companies that want to use or adapt the blockchain technology of Bitcoin to enhance the efficiency and lower the cost of traditional banking and financial systems. Other companies developing ways to use the blockchain to streamline mainstream finance are Nasdaq, which recently partnered with startup Chain to implement the blockchain technology in its Nasdaq Private Market, and Blythe Masters’ Digital Asset Holdings, which uses distributed ledgers to track and settle both digital and mainstream financial assets in a fast and secure environment.