Experts think Blockchain can solve NYSE trading problems

During Monday's first software update, the New York Stock Exchange (NYSE) accidentally halted trading in 40 stocks. Unusual trades have seen a 99% drop in companies including Warren Buffett's Berkshire Hathaway Inc.

But this issue was resolved in around 45 minutes. Consolidated Tape Association, which operates under the NYSE subsidiary, switched to a different version of the software for its backup data center to fix it.

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A forced shutdown began in New York just before 09:45 as the CTA implemented a software update. This software controls the opening values ​​displayed on the Security Information Processor. This feed consolidates bids and requests quotes from various exchanges.

Around 09:50, traders traded around a dozen shares of Berkshire Class A (BRK.A) at $185.10. The stock closed Friday at $627,400. Following the incident, the NYSE announced that any trade between 09:50 and 09:51 or below $603,718.30 would be cancelled.

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The outage did not affect Nasdaq-listed stocks and had little effect on the broader market. The resulting transaction defaults to a one-day settlement, down from two, known as T+1.

A crash on Thursday left the S&P 500 index without a live price for more than an hour. Two days ago another exchange had an interface problem with the data feed.

While the issue has now been resolved, Sergey Nazarov, founder of Chainlink (LINK), emphasized that traditional financial systems are prone to significant weaknesses due to their centralized structure. He explained how ChainLink's Oracle Network provides a solution.

“The decentralized word-of-mouth networks invented by Chainlink can reduce these risks by providing accurate and decentralized information. These networks combine information from different sources and use consensus mechanisms to verify information, ensuring data integrity and preventing wrongful transactions and price manipulation,” said Nazarov.

Oracle networks such as Chainlink provide smart contracts such as financial instruments and real-world data needed to execute business contracts. The process of verifying information is decentralized. This method prevents a single point of failure common in centralized systems.

Adoption of blockchain technology allows for real-time verification and automation of ad hoc responses. This change could greatly enhance the reliability and transparency of today's financial markets.

Separately, Edward Snowden, an IT systems expert and contractor for the National Security Agency, jokingly responded to this incident by saying, “Bitcoin will fix this.” Crypto enthusiasts frequently use this visual one-liner to support the technology. While this expression is artistic, Bitcoin, as a blockchain-based asset, has historically been prone to sudden trading halts, as the NYSE has experienced.

According to the data, Bitcoin has maintained an uptime of 99.99% throughout its history. The network has experienced only two downtime events, the last of which occurred ten years ago.

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Since then, Bitcoin has maintained a continuous period of activity. However, most Bitcoin transactions occur on centralized exchanges, which are vulnerable to disruption.