Yes, I do think blockchain can bring transparency to markets mainly because the public is allowed to view the changes that have been made on the ledger of the blockchain. A blockchain is a distributed ledger that is completely open. Generally, with any regular transactions, there is a middle man like the bank that registers the transaction. It is a centralized system where, when a transaction occurs, the information is recorded on a shared ledger or block, and these blocks are linked together to form a blockchain.
In a blockchain database, every participant or node maintains a copy of the shared ledger. Each transaction on the blockchain is registered in computer code, showing who the parties are, the details of the trade, and time stamp with each containing a rare math-based encrypted signature. This digital signature is key as it allows each block of information securely connected to all the rest. This system provides full transparency and connectedness that lends the blockchain it’s trust and credibility. This connection offers an audit trail of each transaction that’s ever occurred in a system. So, if there is an unauthorized change, each node is notified, and we can see where it took place, and then they either recognize the action as valid or rejected. This makes the blockchain system tamperproof.
Transaction of the blockchain technology is not monitored by a single entity where it has no single point of the network to have the failure, and it is sturdier for hackers to corrupt. The entire blockchain is only accessible to those who are a part of the chain, and only they can modify it. Blockchain is used to keep track of the progress of goods, currency, food items from the source of origin to the final destination. Any discrepancy can be tracked down. So to answer your question, yes I do believe that blockchain brings transparency to markets.
Of course by the look of things, it is possible
When it comes to predicting how financial assets will perform over time, financial institutions cover risk similarly to how bookmakers do — by offering attractive odds on less likely performers and thereby ensuring a spread of risk. This spread of risk then fluctuates directly in accordance with the price movement of the financial asset.
The reason for these fluctuations is that all data on who is selling and buying what, and when, is held by a select group of brokers and market makers, and by them alone. Analytical predictions are the professional backbone of analysts and brokers in the stock markets.
However, what separates predicting from guessing is knowledge. These centralized providers overlay the information from historic volatility prediction models, and augment it with information gleaned from viewing trades in real-time and hence gaining access to collective/crowd wisdom. However, the traders themselves don’t have this key information on how others are predicting.
This represents a distinct asymmetry of information and enables institutions to market certain products to offset their potential losses by pricing them attractively, thereby leveraging their advantage over the investor to create unfavourable market conditions for them.
Ultimately, what this means is that the price of underlying assets that aren’t trading as well, and are less likely to perform, are constantly revised downwards to provide an attractive price point for prospective investors.The Blockchain technology, if deployed and scaled carefully, can bring transparency to the highest level.
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