Decentralized Stock Market using Blockchain

The conventional stock market platform possesses vulnerabilities such as high transaction costs, centrally managed governance which is vulnerable to attacks, lack of market transparency activities and methodologies, third party intervention and an unreliable environment. Blockchain is a technological breakthrough that is rapidly evolving the digital world by providing a new perspective on system security, adaptability, and efficiency. It provides a safe and secure means of exchanging any form of goods, service, or transaction. The presented blockchain-based implementation addresses the inadequacies of the centralized stock market infrastructure by verifying the authenticity of user’s holdings, imposing self-enforced smart contracts and achieving democratic and precise execution and agreement decisions by consensus mechanisms. Thus replacing the need for a centralized authority which preserves the credibility of the stock exchange process. The solution is validated by executing a model in Ethereum. This contributes to a reduction in overall transaction costs owed to brokers and central authorities.