Trading on the New York Stock Exchange (NYSE) was abruptly halted today as Berkshire Hathaway Inc. Class A shares experienced a dramatic drop of 99.97%. The shares fell from $627,214.90 to $185.10 in the last trading session. The trading halt, designated by the M code, was due to volatility, and the cause of the sudden drop is unclear.
In a related incident, Bloomberg reported that a glitch at the New York Stock Exchange’s operator halted volatility trading at about a dozen exchanges, following a recent pattern of technical issues affecting major exchanges. For example, Nasdaq suffered a three-hour disruption in premarket trading on March 18 due to connection issues with its matching engine, the Bangkok Post reported.
DTCC is currently experimenting with using blockchain technology with Chainlink to speed up mutual fund settlements, but it looks like the stock market needs blockchain more than expected. Chainlink’s decentralized oracle network can address these issues by providing accurate and reliable data feeds. Chainlink leverages multiple independent data providers to ensure data is accurate and tamper-proof, reducing the risk of single points of failure common in centralized systems. This decentralized approach increases security and reliability, which are crucial for trading systems where timely and accurate data is essential.
Chainlink’s oracles aggregate data from various sources and use a consensus mechanism to verify information before it is included in the blockchain. This process ensures data integrity and prevents it from being tampered with or corrupted. Additionally, Chainlink provides real-time data validation to quickly identify and correct discrepancies, preventing erroneous transactions and price fluctuations.
Smart contracts supported by Chainlink can automate responses to certain situations, such as large fluctuations in stock prices, by halting trading or triggering alerts. This automation allows for immediate action to investigate and resolve issues, improving market stability.
By leveraging Chainlink’s decentralized oracle network, stock exchanges can improve transparency and trust among market participants. Decentralizing data feeds ensures that no single entity controls the data, reducing the risk of manipulation and increasing market reliability.
Ultimately, blockchain technology, and particularly Chainlink’s decentralized, tamper-proof data feed and real-time verification capabilities, can significantly reduce the risk of glitches and erroneous transactions on stock exchanges, increasing the overall reliability and stability of the trading environment.
