ASX Still Believes in Blockchain Technology, but Delays Launch to Q2 2021
- ASX reaffirmed that it remains committed to a single cutover weekend from its core CHESS system.
The Australian Securities Exchange (ASX) announced today that it has delayed the expected launch of its Distributed Ledger Technology (DLT) Distributed Ledger Technology (DLT) A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to run most of the world’s largest cryptocurrencies, including Bitcoin and Ethereum.Benefits of Distributed Ledger TechnologyThe primary advantage of DLT is the lack of central authority. Each time a ledger update happens, every node constructs a new transaction. Subsequently, all nodes vote by consensus algorithm on which copy is correct. Once a consensus has been determined, all the other nodes update themselves with the new, correct copy of the ledger. This provides several inherent security advantages, achieved via cryptographic keys and signatures.The information stored in a distributed ledger is immutable, or unchangeable. This is because in order to make changes on the network, more than half of the devices that uphold the network would have to consent. This is a very effective defense against hacking and tampering, but it can also lead to difficulties when it comes to things like agreeing on software updates. As a result, unmet desires to update a blockchain network’s software has led to the creation of entirely new networks with new cryptocurrencies (i.e., Bitcoin Cash).Many industries have since branched out with DLT, including banks and multiple fintechs. The area continues to draw much research, and scrutiny. Many proponents of DLT see it as the future of finance, though this is far from a consensus perspective. A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to run most of the world’s largest cryptocurrencies, including Bitcoin and Ethereum.Benefits of Distributed Ledger TechnologyThe primary advantage of DLT is the lack of central authority. Each time a ledger update happens, every node constructs a new transaction. Subsequently, all nodes vote by consensus algorithm on which copy is correct. Once a consensus has been determined, all the other nodes update themselves with the new, correct copy of the ledger. This provides several inherent security advantages, achieved via cryptographic keys and signatures.The information stored in a distributed ledger is immutable, or unchangeable. This is because in order to make changes on the network, more than half of the devices that uphold the network would have to consent. This is a very effective defense against hacking and tampering, but it can also lead to difficulties when it comes to things like agreeing on software updates. As a result, unmet desires to update a blockchain network’s software has led to the creation of entirely new networks with new cryptocurrencies (i.e., Bitcoin Cash).Many industries have since branched out with DLT, including banks and multiple fintechs. The area continues to draw much research, and scrutiny. Many proponents of DLT see it as the future of finance, though this is far from a consensus perspective. Read this Term) network, otherwise known as Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term, which will replace the decades-old CHESS clearing and settlement system, by six months.
The announcement was included in the exchange operator’s response to its public consultation paper regarding its planned transition to a blockchain system. The consultation was originally published in April this year. At the time, ASX expected the new blockchain system would go live by the end of 2020.
Now, it is not expected to be operational until March or April of 2021. According to the report, this is because ASX received 41 written submissions from various stakeholders, with a number of them questioning whether the previous deadline was achievable.
Specifically, the report said: “While there was continued widespread support for delivering new scope on Day 1, respondents questioned whether the proposed implementation window of Q4 2020 to Q1 2021 was achievable given the significance of the technology change and the range of new scope being introduced.“
Taking the responses into consideration, ASX has extended its user development and testing period for six months as well as its mandatory accreditation by the same period of time. It has also deferred the commencement of industry-wide testing by half a year.
The ASX reaffirmed in the report that it remains committed to a single cutover weekend from its core CHESS system. This is despite some parts of the industry wanting a more phased deployment approach.
ASX will also delay the launch of certain features
In the response, the Australian exchange operator also noted that respondents had a common view that there was too much new functionality being proposed to be added in such a short period of time. This would result in increased complexity and impact the implementation timeframe.
As a result of this feedback, ASX also announced that seven features of the new blockchain system that were initially planned to be included in the launch will instead be released at a later stage. This includes settlement in foreign currencies and a reporting feature that shows account balance information.
Whilst ASX has been looking into adopting new technologies since 2015, Finance Magnates reported in September last year that the exchange was considering changing its legacy post-trade infrastructure to a platform based on distributed ledger technology. The changes are part of an effort to cut operational costs and increase the efficiency of transactions.
The Australian Securities Exchange (ASX) announced today that it has delayed the expected launch of its Distributed Ledger Technology (DLT) Distributed Ledger Technology (DLT) A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to run most of the world’s largest cryptocurrencies, including Bitcoin and Ethereum.Benefits of Distributed Ledger TechnologyThe primary advantage of DLT is the lack of central authority. Each time a ledger update happens, every node constructs a new transaction. Subsequently, all nodes vote by consensus algorithm on which copy is correct. Once a consensus has been determined, all the other nodes update themselves with the new, correct copy of the ledger. This provides several inherent security advantages, achieved via cryptographic keys and signatures.The information stored in a distributed ledger is immutable, or unchangeable. This is because in order to make changes on the network, more than half of the devices that uphold the network would have to consent. This is a very effective defense against hacking and tampering, but it can also lead to difficulties when it comes to things like agreeing on software updates. As a result, unmet desires to update a blockchain network’s software has led to the creation of entirely new networks with new cryptocurrencies (i.e., Bitcoin Cash).Many industries have since branched out with DLT, including banks and multiple fintechs. The area continues to draw much research, and scrutiny. Many proponents of DLT see it as the future of finance, though this is far from a consensus perspective. A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to run most of the world’s largest cryptocurrencies, including Bitcoin and Ethereum.Benefits of Distributed Ledger TechnologyThe primary advantage of DLT is the lack of central authority. Each time a ledger update happens, every node constructs a new transaction. Subsequently, all nodes vote by consensus algorithm on which copy is correct. Once a consensus has been determined, all the other nodes update themselves with the new, correct copy of the ledger. This provides several inherent security advantages, achieved via cryptographic keys and signatures.The information stored in a distributed ledger is immutable, or unchangeable. This is because in order to make changes on the network, more than half of the devices that uphold the network would have to consent. This is a very effective defense against hacking and tampering, but it can also lead to difficulties when it comes to things like agreeing on software updates. As a result, unmet desires to update a blockchain network’s software has led to the creation of entirely new networks with new cryptocurrencies (i.e., Bitcoin Cash).Many industries have since branched out with DLT, including banks and multiple fintechs. The area continues to draw much research, and scrutiny. Many proponents of DLT see it as the future of finance, though this is far from a consensus perspective. Read this Term) network, otherwise known as Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term, which will replace the decades-old CHESS clearing and settlement system, by six months.
The announcement was included in the exchange operator’s response to its public consultation paper regarding its planned transition to a blockchain system. The consultation was originally published in April this year. At the time, ASX expected the new blockchain system would go live by the end of 2020.
Now, it is not expected to be operational until March or April of 2021. According to the report, this is because ASX received 41 written submissions from various stakeholders, with a number of them questioning whether the previous deadline was achievable.
Specifically, the report said: “While there was continued widespread support for delivering new scope on Day 1, respondents questioned whether the proposed implementation window of Q4 2020 to Q1 2021 was achievable given the significance of the technology change and the range of new scope being introduced.“
Taking the responses into consideration, ASX has extended its user development and testing period for six months as well as its mandatory accreditation by the same period of time. It has also deferred the commencement of industry-wide testing by half a year.
The ASX reaffirmed in the report that it remains committed to a single cutover weekend from its core CHESS system. This is despite some parts of the industry wanting a more phased deployment approach.
ASX will also delay the launch of certain features
In the response, the Australian exchange operator also noted that respondents had a common view that there was too much new functionality being proposed to be added in such a short period of time. This would result in increased complexity and impact the implementation timeframe.
As a result of this feedback, ASX also announced that seven features of the new blockchain system that were initially planned to be included in the launch will instead be released at a later stage. This includes settlement in foreign currencies and a reporting feature that shows account balance information.
Whilst ASX has been looking into adopting new technologies since 2015, Finance Magnates reported in September last year that the exchange was considering changing its legacy post-trade infrastructure to a platform based on distributed ledger technology. The changes are part of an effort to cut operational costs and increase the efficiency of transactions.