How Blockchain Technology Is Set To Revolutionize Global Stock Trading

In the past few years, we got to see blockchain technology help sectors such as finance and logistics evolve. Not only that companies in these industries are now able to offer better service to their clients but people also feel safer doing business with them. But what about global stock trading?

The emergence of blockchain has already had an impact on the world of stock trading and is set to change it even more in the future. So, how exactly is this technology going to change the global stock market? Read on to find out.

Trading could take place 24/7

With blockchain technology continuing to play a huge role in global stock trading, we shouldn’t be surprised if trading starts taking place 24/7.

This new technology simplifies the entire process, making it possible for exchanges to be globally active at all times. 24/7 trading availability could do wonders for traders all around the world as it eliminates after-hours trading woes.

Not to mention that they would no longer have to worry about geographical boundaries when trading. The blockchain technology has evolved a lot in the last few years and it’ll continue to do the same, making 24/7 trading a completely viable idea.

There should be greater transparency

One of the best things about blockchain is that it allows full transparency to traders. Basically, this technology allows you to see the full record of transactions you’ve made.

Think of it as doing a title search on your vehicle. With the blockchain, there’s a new block added to the chain after every transaction, making it possible for you to see exactly who owned stock at which point in time.

Being able to do this doesn’t only give you a chance to keep track of previous transactions but it also helps gather more information that could help you become a better trader.

Smart contracts could increase trustworthiness

If you’ve heard about blockchain, chances are you also heard about smart contracts.

By relying on blockchain technology, experts came up with contracts that get executed automatically at a certain point in time. It’s only a matter of time when this type of contract will start being used regularly in the world of stock trading as they make the entire process safer for traders.

No longer do you have to trust the other party to be able to stick to their part of the agreement as the smart contracts will get the job done automatically.

How Blockchain Technology, Transparency to Traders, Cryptocurrency Market

Cryptocurrencies might gain even more attention

We’ve all heard so much about cryptocurrencies in the past few years and it was blockchain technology that made it possible for these digital currencies to emerge.

Crypto assents get are now being traded even more and we keep seeing more and more institutional investors decide to enter the cryptocurrency market.

This leads to the stabilization and reduction of volatility as traders will have more crypto assets in their portfolios, thus affecting the stock market. If you’ve decided to invest in cryptocurrency, now’s the right time to buy Ripple from a trusted broker.

Communication should improve

Another great thing about blockchain is that there’s a chance this technology helps take the communication between traders and their portfolio and investment managers to the next level.

This is mostly because of the heightened transparency and trust resulting from the use of blockchain in the stock market. Essentially, account transactions and trades could become much easier to share while managers might be able to start tracking portfolio performances in real-time.

Of course, such communication would only be possible between traders and parties they list as trusted.

New types of investments could emerge

When talking about the stock market, people usually think of buying and selling shares in companies. However, with the use of blockchain, every asset could be tokenized, allowing people to sell partial investments in that specific asset.

For example, if you have a baseball card that’s worth $50,000 and you decide to sell partial investments in it, the entire process of tokenization could be recorded by the blockchain and the information about it could be stored safely.

Therefore, blockchain simplifies private equity trading and allows the emergence of new types of investments for traders in the stock market.

Over to you

Everything we talked about is just a tip of the iceberg, compared to what kind of impact blockchain might end up having on the global stock trading in the near future.

This is something traders have to be aware of. If you’ve just entered the world of trading, it’s even more critical for you to stay on top of the trends and prepare for the impact blockchain will have on the world of stock trading.

Have these six things in mind and you’ll know exactly what to prepare for.


Emma Sumner
Business Strategist
Sumner Coach Academy.

Only members can leave comments. Login or Register!