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Wall Street is increasingly interested in the Ethereum blockchain

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Wall Street is increasingly interested in the Ethereum blockchain

Wall Street is increasingly interested in the Ethereum blockchain
CONTENT

  • Ethereum blockchain could be the new home for Wall Street traders

  • The existing financial system is full of pitfalls that can ruin the market

  • At the same time, Ethereum itself did not lose its original properties.

International consortium of news organizations developing transparency standards.

The traditional financial world is increasingly starting to pay attention to the largest blockchain sandbox for settlement transactions.

Wall Street is increasingly interested in the Ethereum blockchain

The Ethereum blockchain platform is ranked second in the list of the top 100 cryptocurrency projects with the highest capitalizations for a reason. The distributed cryptographic sandbox has become a launching pad for hundreds, if not thousands of ERC-20 blockchain projects.

Many of them subsequently moved to their own Mainnet network, but Ethereum’s contribution became the starting point that allowed the projects to attract hundreds of millions of dollars of investment..

Last month, machine learning engineer John Johnson noticed one interesting detail: when he traded through Fidelity, he was able to place orders with much more money than he had on hand..

A few days later, Johnson received a letter stating that if he did not transfer enough funds to the account balance by the end of the week, then the broker would simply liquidate the required amount of assets to cover the deficit..

Macrobubble

When asked about the practical possibility of placing large orders in the absence of sufficient funds on the balance sheet, Fidelity noted that the broker allows clients to place trades without funds in the account, if the broker is sure that the amount will be repaid by the client by the time of settlement.

Johnson soon realized that using previously pledged assets as collateral on a new loan and short selling could lead to excessive volatility..

Wall Street is increasingly interested in the Ethereum blockchain

Commenting on the buoyancy of brokerage orders, Ethereum ecosystem co-founder Vitalik Buterin noted that more and more companies on Wall Street are beginning to realize the benefits of cryptographic blockchain technologies..

Moving from Wall Street

Distributed storages are able to contain a multi-tier data packet with high accuracy, avoiding a large number of loopholes, one of which Johnson took advantage of in his example..

Enterprise applications of all kinds are increasingly exploring the ethereum mainnet: https://t.co/uQ6CBdBYkd

There’s great value in a public neutral place to store messages and application logic. But this also highlights why our work on privacy and scaling is so important.

– vitalik.eth (@VitalikButerin) April 4, 2020

Buterin is convinced: society needs an open neutral place where messages and logic of various applications can be safely stored. 

“It also highlights why our privacy and scaling work is so important,” Buterin added..

In confirmation of Buterin’s words, cryptocurrency investor Ryan Sean Adams cites the example of the Fat Brands restaurant franchise..

Last month, the Nasdaq-traded franchise issued $ 39 million in bonds through the Ethereum ecosystem, with the issuer’s ETH address listed on the Bloomberg terminal..

Wall Street is increasingly interested in the Ethereum blockchain

Despite the fact that the story with Fat Brands is, rather, a once illustrative case, the use of the Ethereum blockchain network as a settlement layer has every chance of becoming a priority platform for all of Wall Street..

Earlier, Buterin said that he used Ethereum as a means of payment until the cryptocurrency market collapsed due to a 30% drop in Bitcoin, which, according to the creator of Ethereum, lost its original status..

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