Blockchain technology has been sidelined by the Australian Securities Exchange (ASX), a prominent entity in the nation’s financial domain, as it departs from its original intentions of utilizing blockchain to reconstruct its software platform.
This unexpected move signifies a momentous shift in the perception of a once-celebrated concept that rose to prominence alongside the growing popularity of cryptocurrencies.
The decision to abandon blockchain rebuild marks a significant turning point, highlighting the challenges and limitations that have become apparent during its implementation journey.
Blockchain Ditched: ASX Explores New Paths For Software Rebuild
In a recent meeting (via Reuters), the ASX made a significant announcement, stating its decision to exclude blockchain technology and any related distributed ledger technology (DLT) from its future plans. This move represents a departure from the organization’s previous intentions and marks a noteworthy shift in strategy.
Back in November 2022, the ASX decided to temporarily halt the rebuild of its comprehensive trading, settlement, and clearing software, which was originally intended to incorporate decentralized computing using blockchain technology.
Image: ASX
The company recognized the need for a pause after seven years of development, as an external review revealed the requirement for significant rework.
Following the initial pause, the ASX has expressed its intention to explore alternative approaches for a fresh attempt at rebuilding its software, which has been in use for over three decades.
The company is now actively seeking new paths and considering different strategies to address the challenges it faced during the previous development phase.
ASX Pioneering Ambitions With Blockchain Technology
The ASX had set its sights on becoming the world’s first securities exchange to integrate blockchain technology into its core services. In collaboration with the New York-based contractor Digital Asset, which provided the necessary technology, the ASX was poised to revolutionize its operations.
In fact, in 2016, the ASX had even acquired a small stake in Digital Asset after enlisting its services to rebuild its software.
When asked about the approach for the next 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 the utilization of more conventional technology rather than blockchain.
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Embracing Conventional Technology For Business Objectives
In the aforementioned meeting, Whiteley updated participants on the company’s progress toward formulating a new strategy.
He conveyed that ASX aimed to finalize this strategy before the year’s end, underscoring the organization’s commitment to driving forward with purpose and direction.
-Featured image from KRIZZDAPAUL/GETTY IMAGE