Bitcoin blockchain technology used to increase transaction efficiency
Bitcoin has been eyed as not just a “digital currency,” but as a method to increase the efficiency of financial transactions. The Nasdaq stock market beginning to use Bitcoin’s blockchain technology, a public, distributed ledger that uses a central repository, is a sign of the core technology being adopted by firms that are not necessarily directly related to Bitcoin.
The Bitcoin blockchain technology validates trades based on an algorithm that runs on third party computers, disintermediating the need for banks, clearing houses and intermediaries, a Financial Times article noted. “It brings a level of auditing that’s based on mathematics and not based on trusting a third party,” David Johnson, chairman of Factom Foundation, a start-up trying to expand the use of the blockchain beyond bitcoin, was quoted in the article saying. The primary benefit of the technology is speeding the time it takes to settle a trade, he said.