The Australian Securities Exchange (ASX) has taken a significant decision on the cryptocurrency business. They have chosen to scrap their ambitions to revamp their software platform utilizing blockchain technology.
This is a huge shift from the previously lauded notion that gained popularity with cryptocurrency. The ASX made its decision following a review that revealed they needed considerable revision for future expansion.
A New Direction
The ASX sparked much consternation among market players in 2022 when it revealed fresh intentions to pause its reconstruction of comprehensive trading. This was built using decentralized computing. Unfortunately, the corporation has recently declared that it would not use blockchain technology in its latest attempt to repair its extremely old software.
During a recent meeting, the project director said that, while the exchange is looking into new possibilities, it would most likely employ existing technologies. This is a significant departure from their previous ambitions to adopt new blockchain technology in certain of its critical processes.
The decision by Australian Securities Exchange to abandon its initial concept of blockchain technology might be due to a number of fundamental issues. The external examination highlighted the necessity for major redesign after years of development. After years of utilizing older technology, using blockchain technology may appear to be too dangerous.
Furthermore, the majority of those present at the conference expressed a preference for a low-risk approach that avoided such a rapid move into new and unproven technologies.
(The Australian Securities Exchange Offices in Sydney. Source: Ledger Insights)
But what does ASX hope to accomplish before the end of the year? The corporation has already asked vendors for new software concepts and technology that may be used by them. They are also taking market players’ feedback into account to ensure that everyone is pleased with the unexpected adjustments.
The ASX decision may come as terrible news to members of the crypto business. This is because blockchain technology was previously heralded as a game changer, but it is currently being rejected by major financial institutions. This move highlights the challenges that the cryptocurrency business and technology may face in the near future.
The decision by the ASX to forego the use of blockchain in its software platform upgrade is a big step. The ASX is now investigating traditional technological solutions after seven years of research. They are highlighting the significance of market input and a less risky strategy. The industry will be watching ASX’s new strategy and its influence on blockchain technology in finance with anticipation.