Experts say blockchain could solve New York Stock Exchange problems

During a software update Monday morning, an issue caused approximately 40 stocks on the New York Stock Exchange (NYSE) to incorrectly halt trading. Individual trading showed a 99% drop in companies including Warren Buffett's Berkshire Hathaway.

However, this problem was resolved in about 45 minutes. The Unified Tape Association, which operates under a subsidiary of the New York Stock Exchange, has moved to a backup data center by releasing other software to address it.

How can decentralization prevent trade from stopping?

The forced shutdowns began shortly before 9:45 a.m. in New York as the CTA implemented a software update. This program controls Prices Opening displayed on Securities Information Processor. This feed consolidates quotes and requests quotes from various exchanges.

Around 9:50 a.m., traders traded a dozen shares of Berkshire Class A (BRK.A) for $185.10. The stock closed Friday at $627.4 thousand. After the incident, the New York Stock Exchange announced that any transaction between 9:50 a.m. and 9:51 a.m. equal to or less than $603.7 thousand would be canceled.

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The unrest did not affect Nasdaq-listed stocks and had little impact on the market as a whole. This occurred as trading infrastructure moved toward one-day settlements, instead of two, known as T+1.

Thursday's glitch left the S&P 500 without live trading for more than an hour. Two days ago, another exchange experienced interface issues with the data feed.

Although the problem is now resolved, Sergey Nazarov, co-founder of Chainlink (LINK), pointed out that traditional financial systems are vulnerable to significant vulnerabilities due to their centralized structure. He explained how Chainlink's Oracle Network could provide a solution.

“Decentralized Oracle Networks, invented by Chainlink, can mitigate these risks by providing accurate, tamper-proof data. These networks collect data from various sources and use consensus mechanisms to validate information, ensure data integrity, and prevent false transactions and price manipulation.

Provides Oracle networks such as Chainlink (Chain link) Smart contracts with real-world data needed to function as financial instruments and commercial contracts. It decentralizes the data validation process. This method avoids a single point of failure common in centralized systems.

The adoption of blockchain technology will enable real-time verification and improve the reliability and transparency of financial markets.

The adoption of blockchain technology will enable real-time verification and automated responses to anomalies. This transformation could greatly improve the reliability and transparency of modern financial markets.

separately, answer Edward Snowden, computer systems expert and former NSA contractor, humorously commented on the incident, writing: “Bitcoin solves this problem.” It is often used Crypto enthusiasts This iconic liner supports the technology. While this statement is witty, Bitcoin, as a blockchain-based asset, is historically less vulnerable to sudden trading halts, as the NYSE has.

According to data, Bitcoin has maintained 99.99% uptime throughout its history. The network has only experienced two downtimes, the last one occurring over a decade ago.

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Since then, Bitcoin has maintained continuous availability. However, most Bitcoin trading takes place in... Central stock exchangeswhich is subject to interruption.