[vinniejames]

The reason for this is the fact that large businesses profit from being the middle-man here. Moving towards automated settlement on a blockchain reduces cost and increases efficiency,it's a win-win for everybody except the middle-man

[tzs]

There's nothing in fast, cheap, automated settlement that requires a blockchain. A centralized system should cost less, at least compared to a proof of work blockchain, due to energy costs.

Also, stock markets are heavily regulated. In a centralized system, it is relatively easy to enforce regulations. How do you do that in a blockchain based system?

[yks]

Blockchain is the biggest "solution looking for a problem" of our time and because it looks like we've entered the meme age, I'd not be surprised if everything was reimplemented with blockchain regardless of the fit.

[spiralx]

There is a massive overlap between /r/wallstreetbets, Elon Musk fan-boys and crypto enthusiasts I bet, and this mess has something for all of them: gaming, FOMO, evil short-sellers, beating the system, lots of diagrams with arrows and an app that's easy to use and easier to blame.

[Beldin]

Having the stock market emit 325.95 kg CO2 per transaction [1] is one of the few ways I've ever heard to make the stock market significantly worse for society -- irrespective of your current feelings about it.

[1] https://digiconomist.net/bitcoin-energy-consumption/

[Scoundreller]

There’s more to crypto than Bitcoin.

[Grustaf]

Why would a blockchain be better than a traditional database for this? Making it decentralized is a non-goal, so what would the advantages be?

The real issue is not the specific technology, it's that it's an ancient hodge podge.

[mlyle]

No. The issue is that you have no central ledger of ownership of stock, but instead many firms' individual ledgers. You also have various kinds of risk of fraud, etc.

T+2 is an atomic commitment algorithm that leaves enough time for humans to make phone calls and discuss the implications when there's going to be a failure to deliver or another anomaly from fraud or globally inconsistent state.

[spiralx]

It's far more centralised than you think, dematerialization isn't 100% complete but Cede and Co. hold the ledger of who owns what - at least to the extent that is possible.

https://en.wikipedia.org/wiki/Depository_Trust_%26_Clearing_...

https://en.wikipedia.org/wiki/Cede_and_Company

[dan-robertson]

Blockchains are about decentralisation and removing the need for trust. But neither is necessary in the case of stock settlement. If you accidentally have the DTC send someone a bunch of your shares, you politely ask that person for them back and you’ll likely get them. Try doing that with a blockchain (especially if you accidentally send them to a nonexistent address)

[xadhominemx]

Blockchain does not do anything a database cannot. It's a pointless application of the technology.

[NovemberWhiskey]

Who do you think "the middle-man" is here, exactly?