What Does Blockchain Technology Mean to Forex?
For many years, there has been speculation about major forex trading platforms embracing blockchain technology. Some of the most notable instances of this discourse came to life in December, when HSBC and Wells Fargo adopted blockchain to settle bilateral foreign exchange deals. To support forex trading “using real currency and real accounts,” the two banks have started collaborating with the Core-FX distributed ledger created by Baton Systems.
Many people have been eager to witness this account for a long time. It is amazing. However, what will the shift mean for traders, given that it seems blockchain technology in FX is finally becoming a reality?
Accuracy and Precision
The blockchain is built from the ground up to enable exact and accurate transactions, sometimes via simple buy and sell orders and other times through the implementation of smart contracts (which traders can use to put in orders, set limits, etc.). Furthermore, the procedure is becoming even more precise thanks to the developing blockchain technology. The introduction of Chainlink has successfully created a form of next-generation data validation method for completing blockchain transactions, particularly in financial training. It is a novel protocol that helps smart contracts verify the accuracy of their data. Having such a system in place helps traders ensure that any contracts they create and orders they place will be carried out precisely as intended.
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