Blockchain Technology and its Impact in Stock Exchange

The traditional centralized stock exchange systems are having many issues, such as steep transaction costs, centralized control and governance, and vulnerability to various forms of attack and abuse, including front-running. So, a system that provides the accessibility, integrity, reliability, and security for stock transactional data is much needed in any trading environment. Blockchain is an emerging technology that is used for sharing data in a decentralized manner in a huge network of untrusted participants. Blockchain-based systems guarantee accessibility, availability, integrity, reliability, security and easy data management. The execution of smart contracts in stock exchange will eliminate the need of central authority and facilitates various stock trading-related requests and inquiries. The data stored in the transactional record is accessible by all the stakeholders without compromising its authenticity. The blockchain based stock exchange system will eliminate the broker commission and transaction fee but it will have the mining fee which is negligible compared to other fees of centralized system. This study has prepared a report on the previous research work that was implemented on blockchain based stock exchange system and a comparison is made on the blockchain type, its implementation and performance.