Prepare Yourself for Stock Trading Using Bitcoin Technology

By Chris Mills on at

Blockchain, the digital ledger underpinning Bitcoin, is perhaps the cryptocurrency’s most interesting (and intelligent) feature, with its ability to securely and publicly record transactions. Given that stock trading is a confusing mishmash of property trading hands, blockchain-powered trades seems like a surprisingly good idea.

Overstock.com is an online retailer that has warmly embraced Bitcoin and the blockchain, and now it’s taking the crypto-love one step further: the US Security and Exchange Commission (SEC) has approved Overstock’s plan to issue public securities. That’s a huge step forward for the blockchain as a technology, seeing that it’s currently been limited mostly to Bitcoin.

A blockchain is a platform for making a publicly available, non-changeable register of transactions. Users can write transactions to the chain (and have them verified by a vast network of computers), but cannot subsequently delete those entries. In the absence of a central bank, it’s what keeps Bitcoin ticking.

In the hands of Overstock, that same system will power issuing company stock, via a subsidiary called TØ.com. The company hasn’t announced exactly when it will be issuing crypto-securities, but CEO Patrick Byrne told Wired it’s “high on our list of priorities for 2016”.

[Wired]


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