Blockchain Plans Scrapped By Australian Stock Exchange
Blockchain technology has been sidelined by the Australian Securities Exchange (ASX), a prominent entity in the country’s financial domain, as it moves away from its original intentions to utilize blockchain to rebuild its software platform.
This unexpected move signifies an important shift in perception of a once-celebrated concept that has risen to prominence along with the growing popularity of cryptocurrencies.
The decision to abandon the blockchain rebuild marks a significant turning point, highlighting the challenges and limitations that became apparent during its implementation journey.
Blockchain scrapped: ASX explores new avenues for software reconstruction
At a recent meeting (via Reuters), the ASX made a significant announcement, declaring its decision to exclude blockchain technology and any related distributed ledger technology (DLT) from its future plans. This change represents a departure from the organization’s previous intentions and marks a notable shift in strategy.
In November 2022, the ASX decided stop temporarily the rebuilding of its comprehensive trading, settlement and clearing software, originally intended to incorporate decentralized computing using blockchain technology.
Image: ASX
The company recognized the need for a break after seven years of development, as an external review revealed the need for significant rework.
After the initial pause, ASX expressed its intention to explore alternative approaches for a new attempt to rebuild its software, which has been in use for over three decades.
The company is now actively seeking new avenues and considering different strategies to address the challenges it faced during the previous development phase.
ASX Pioneering Ambitions with Blockchain Technology
The ASX aimed to become the world’s first stock exchange to integrate blockchain technology in its main services. In collaboration with New York-based contractor Digital Asset, who provided the necessary technology, ASX was poised to revolutionize their operations.
In fact, in 2016, ASX even acquired a small stake in Digital Asset after hiring its services to rebuild its software.
When asked about the approach for the upcoming software rebuild attempt, Tim Whiteley, the project director, revealed a significant change in direction.
While the ASX is open to exploring all available options, Whiteley stated that the desired business outcomes would likely require utilizing more conventional technology rather than blockchain.
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Adopting mainstream technology for business goals
At the aforementioned meeting, Whiteley updated attendees on the company’s progress in formulating a new strategy.
He communicated that ASX intends to finalize this strategy before the end of the year, underscoring the organization’s commitment to moving forward with purpose and direction.
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