An Application of Blockchain in Stock Market

Abstract

Blockchain is one of the growing technologies used for financial management systems. Financial data must be kept secure otherwise it can create a huge loss. So, whenever security features or technologies are developed must keep financial security as a priority. Stock market management is another area of finance sector that works on two concepts, that is, minimize the risk and maximize the profit. In this chapter, the authors discuss how blockchain technology is used for stock market analysis. Mainly blockchain will help us to make optimal stock exchanges through automation and decentralization. Stock market across the globe is rapidly using blockchain technology for the market transaction. Some of the country is still preparing themselves to use the blockchain technology. This technology offers huge potential for tracing securities lending, margin financing, and surveillance of system risk.

The linear and non-linear interactions between blockchain technology index and the stock market indices: a case study of the UAE banking sector

“…Because the UAE banking industry has been an early adopter of blockchain technology, it reduces costs, speeds transactions, improves data quality, accepts electronic currencies, improves accountability, improves compliance and ultimately improves performance, which, in turn, reflects on stock prices. The results of this study are in line with previous research, such as that of Guo and Liang (2016), Arjun and Suprabha (2020) and Nair and Bhagat (2020), which found that cost optimization, increased operational efficiency and risk reduction were among the factors that led to the adoption of these technologies in banking industry.…”

“…Based on the mean equation as illustrated in Table 4, the findings indicate that blockchain technology has a significant positive influence on the stock market returns of both Abu Dhabi and Dubai banks. Because the UAE banking industry has been an early Guo and Liang (2016), Arjun and Suprabha (2020) and Nair and Bhagat (2020), which found that cost optimization, increased operational efficiency and risk reduction were among the factors that led to the adoption of these technologies in banking industry.…”

Blockchain-Based Decentralized Cloud Solutions for Data Transfer

“…Data from decentralised data sources provides more and safer data from both internal and external sources. In sources of intrinsic data for local and metropolitan areas, the data from a certain company's branch might be stated to be local [ 29 , 30 ]. Combined data from different companies' metropolitan data is represented by branches.…”

Blockchain in Financial Services: Current Status, Adaptation Challenges, and Future Vision

“…While several financial services companies, such as Deutsche KfW Financial Institutions, are still performing simulations for blockchain-enabled securities trading, others have fully integrated blockchain technology into secondary market services. A good example is the Nasdaq Linq [97], a PE trading solution developed by Nasdaq in collaboration with the blockchain start-up Chain.com [82]. This platform enables non-listed users to transfer their equity and perform a PE transaction's settlement.…”