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NASDAQ Interested In Blockchain

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NASDAQ Interested In Blockchain
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NASDAQ OMX Group, Inc. (NASDAQ: NDAQ) is the latest big name to start looking into the benefits of bitcoin-based technology.

The exchange is hoping to use blockchain, the ledger-like technology that bitcoin runs on, to revolutionize its trading platform.

New Uses

Blockchain has been touted as one of the largest tech revolutions over the past ten years, due to its ability to keep track of transactions without an intermediary.

The technology has been evaluated for use in many capacities outside the currency space, as many believe the possibilities for this type of system are nearly endless.

However, Nasdaq's use of blockchain would be revolutionary, as it would mark the first large-scale use of the technology outside currency/cryptocurrencies.

Related Link: Bitcoin 101

Nasdaq To Integrate Bitcoin

Nasdaq is planning to first integrate blockchain into its Nasdaq Private Market, where pre-IPO companies are traded.

The current system for that smaller market relies heavily on informal means like spreadsheets, so the addition of blockchain is expected to significantly improve the market's functionality by accurately recording trades instantly.

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Security Concerns

While Nasdaq's investigation into how bitcoin can benefit its exchanges has been widely praised by cryptocurrency enthusiasts, critics say using blockchain opens the exchange up to a new set of security risks.

Bitcoin has been surrounded by press highlighting the risks of hacking attacks and money laundering scandals, so blockchain may not be easily accepted at first.

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