Blockchain technology has been sidelined by the Australian Securities Exchange (ASX), a prominent entity in the country’s financial space, as it deviates from its original intentions of using blockchain to rebuild its software platform.
The unexpected move signals a major shift in perception of the once celebrated concept that has emerged alongside the growing popularity of cryptocurrencies.
The decision to forego rebuilding the blockchain marks an important turning point, highlighting the challenges and limitations that became apparent during the implementation journey.
De-Blockchain: ASX Explores New Paths to Refactoring Software
In a recent meeting (trans Reuters), the ASX made a significant announcement, indicating its decision to exclude blockchain technology and any related distributed ledger technology (DLT) from its future plans. This step marks a departure from the previous intentions of the organization and represents a significant shift in strategy.
Back in November 2022, the ASX decided that pause Rebuilding its comprehensive trading, settlement and clearing platform, which was originally intended to integrate decentralized computing using blockchain technology.
Image: ASX
The company recognized the need to pause after seven years of development, as an external review revealed the need for significant rework.
After the initial halt, ASX has expressed its intention to explore alternative avenues for a fresh attempt to rebuild its software, which has been in use for more than three decades.
The company is now actively looking for new paths and considering different strategies to meet the challenges it faced during the previous development phase.
Pioneering ASX ambitions with Blockchain technology
The ASX had set its sights on becoming The first stock exchange in the world to integrate blockchain technology in its basic services. In collaboration with New York-based contractor Digital Asset, which provided the necessary technology, ASX was about to revolutionize its operations.
In fact, in 2016 the ASX acquired a small stake in Digital Asset after enlisting its services to rebuild its software.
When asked about the approach of the next software refactoring attempt, Tim Whiteley, the project manager, revealed a significant change of direction.
While the ASX is open to exploring all available options, Whitley mentioned that the desired business outcomes will likely require the use of more traditional technology than blockchain.
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Adopting traditional technology for business goals
At the aforementioned meeting, Whitley briefed the participants on the company’s progress toward formulating a new strategy.
He explained that the ASX aims to finalize this strategy before the end of the year, stressing the organization’s commitment to moving forward with purpose and direction.
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