Straight Talk Special Issue: Financial Services - 35

record that can't be changed.
Through the use of
cryptographic technology, the
record, or ledger, of
transactions is encrypted so
that only authorized parties in
the network are allowed to
access or alter it. Changes don't
need a central authority or any
intermediary to authenticate
them; instead, a unique
algorithm-generated token is
created and assigned to every
change. These tokens are
grouped into blocks and are
validated by the computers on
the network. Each block has a
timestamp and a link to the
previous block. Everyone's copy
of the blockchain is kept in sync,
and cryptography ensures that
users can only edit the parts of
the blockchain for which they
have a private key and
permission to do so.
Today, blockchain technology is
not limited to virtual currencies.
Many centralized processes can
potentially be replaced with
blockchain technology. One such
area is the post-trade settlement
process, where the new
technology could enable the
instant updating of ledgers in a

synchronized and authenticated
manner. This would create a
real-time or near real-time
clearing and settlement system
that would bring it in line with the
speed of trading.

Cutting out the
middleman
As it speeds up processes,
blockchain's decentralized
control on authentication and
security also promises to reduce
risks for businesses. These
include risks involved in
verifying the identity of parties
to a transaction, as required by
so-called KYC, or Know Your
Customer, regulations.
For instance, market exchanges
like ours typically depend on a

clearing house to oversee the
clearing and settlement of
trades. Clearing houses sit in
the middle of a transaction
between buyer and seller,
guaranteeing that both parties
meet their obligations. The
clearing house holds what are
called margin, a cash advance to
be used if one side of the
transaction fails to fulﬁll its
obligations during the
settlement process.
To mitigate risk, the clearing
house ensures that margins are
paid in a timely
manner-usually on a day to
day basis, but in times of high
volatility, sometimes several
times a day. Clearing houses
oﬀer this service by levying a
small fee on each transaction.

Blockchain technology is not limited to
virtual currencies. Many centralized
processes can potentially be replaced with
blockchain technology.

35

Straight Talk Special Issue: Financial Services

Table of Contents for the Digital Edition of Straight Talk Special Issue: Financial Services

Contents
Straight Talk Special Issue: Financial Services - Cover1
Straight Talk Special Issue: Financial Services - Cover2
Straight Talk Special Issue: Financial Services - 1
Straight Talk Special Issue: Financial Services - Contents
Straight Talk Special Issue: Financial Services - 3
Straight Talk Special Issue: Financial Services - 4
Straight Talk Special Issue: Financial Services - 5
Straight Talk Special Issue: Financial Services - 6
Straight Talk Special Issue: Financial Services - 7
Straight Talk Special Issue: Financial Services - 8
Straight Talk Special Issue: Financial Services - 9
Straight Talk Special Issue: Financial Services - 10
Straight Talk Special Issue: Financial Services - 11
Straight Talk Special Issue: Financial Services - 12
Straight Talk Special Issue: Financial Services - 13
Straight Talk Special Issue: Financial Services - 14
Straight Talk Special Issue: Financial Services - 15
Straight Talk Special Issue: Financial Services - 16
Straight Talk Special Issue: Financial Services - 17
Straight Talk Special Issue: Financial Services - 18
Straight Talk Special Issue: Financial Services - 19
Straight Talk Special Issue: Financial Services - 20
Straight Talk Special Issue: Financial Services - 21
Straight Talk Special Issue: Financial Services - 22
Straight Talk Special Issue: Financial Services - 23
Straight Talk Special Issue: Financial Services - 24
Straight Talk Special Issue: Financial Services - 25
Straight Talk Special Issue: Financial Services - 26
Straight Talk Special Issue: Financial Services - 27
Straight Talk Special Issue: Financial Services - 28
Straight Talk Special Issue: Financial Services - 29
Straight Talk Special Issue: Financial Services - 30
Straight Talk Special Issue: Financial Services - 31
Straight Talk Special Issue: Financial Services - 32
Straight Talk Special Issue: Financial Services - 33
Straight Talk Special Issue: Financial Services - 34
Straight Talk Special Issue: Financial Services - 35
Straight Talk Special Issue: Financial Services - 36
Straight Talk Special Issue: Financial Services - 37
Straight Talk Special Issue: Financial Services - 38
Straight Talk Special Issue: Financial Services - 39
Straight Talk Special Issue: Financial Services - 40
Straight Talk Special Issue: Financial Services - Cover3
Straight Talk Special Issue: Financial Services - Cover4
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https://magazine.straighttalkonline.com/issue10
https://magazine.straighttalkonline.com/issue9
https://magazine.straighttalkonline.com/womeninit
https://magazine.straighttalkonline.com/financialservices
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https://magazine.straighttalkonline.com/issue5
https://magazine.straighttalkonline.com/issue4
https://magazine.straighttalkonline.com/issue3
https://magazine.straighttalkonline.com/issue2
https://magazine.straighttalkonline.com/issue1
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