Created at 8am, Apr 17
ilkeCrypto
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Blockchain for finance: A survey
Contract ID
E3-3fY8N2jf5SbFwgrPfAB5gGmthnK6XZMwhL2skf4Q
File Type
PDF
Entry Count
153
Embed. Model
jina_embeddings_v2_base_en
Index Type
hnsw

As an innovative technology for enhancing authenticity, security, and risk management, blockchain is being widely adopted in trade and finance systems. The unique capabilities of blockchain, such as immutability and transparency, enable new business models of distributed data storage, point‐to‐point transactions, and decentralized autonomous organizations. Here, the authors focus on blockchain‐based securities trading, in which blockchain technology plays a vital role in financial services as it ultimately lifts trust and frees the need for third‐party verification by using consensus‐based verification. The 12 most popular blockchain platforms are investigated and 6 platforms that are related to finance are elaborated on, seeking to provide a panorama of securities trading practices. Meanwhile, this survey provides a comprehensive summary of blockchain‐based securities trading applications. Numerous practical applications of blockchain‐based securities trading are gathered and they are categorized into four distinct categories. For each category, a typical example is introduced, and how blockchain contributes to solving the key problems faced by FinTech companies and researchers is explained. Finally, interesting observations are provided ranging from mainstream blockchain‐based financial institutions to security issues of decentralized finance applications, aiming to picture the current blockchain ecosystem in finance.Wu, Hanjie & Yao, Qian & Liu, Zhenguang & Huang, Butian & Zhuang, Yuan & Tang, Huayun & Liu, Erwu. (2024). Blockchain for finance: A survey. IET Blockchain. n/a-n/a. 10.1049/blc2.12067.

WU ET AL. 4.2.3 securities industry Clearing and settlement system in the
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The clearing and settlement system is a system used for securities transactions settlement, which involves two main processes: clearing and settlement. Clearing is the process of matching, verifying, and reconciling trade details between the buyer and the seller. Settlement is the process of actually transferring the agreed-upon nancial assets (e.g. stocks, bonds, cash) from the seller to the buyer and vice versa. Traditional securities settlement systems rely on centralized securities exchanges and securities clearing organizations to complete securities clearing and settlement. During the trading process, buyers and sellers of securities need to submit trading orders to the securities exchange through brokers, and the settlement and delivery of securities also need to be completed through the securities clearing organization. The entire process requires the participation of multiple intermediaries, which prolongs settlement time and introduces risks associated with multiple
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However, blockchain technology can bring many benets to the securities clearing and settlement system, such as improving trading efciency, reducing trading costs, and enhancing trading security.
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Goldman Sachs is one of the worlds most powerful investment banks, and it is also the earliest nancial institution to research blockchain technology. It proposed an application of Securities Settlement Cryptocurrency (known as SETLcoin), which is designed to utilize blockchain technology for securities trading and settlement, enabling users to trade nancial assets using SETLcoin via a virtual wallet. The virtual wallet for SETLcoin is built on blockchain technology, and each user can have a virtual account to store and manage their nancial assets including stocks, bonds, currencies, and more. Whenever a user attempts to make a trade, SETLcoin will exploit smart contracts to validate the transactions legality and record transaction data. Subsequently, this transaction data will be stored in a distributed ledger accessible and veriable by each node in the blockchain network [87, 88].
id: 01a62ac2eaae9bc7e2081575f93d17e9 - page: 13
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