MONTE CARLO, MONACO / ACCESSWIRE / December 18, 2017 / As the amount of globally produced foreign exchange data continues to grow exponentially, the ability to use, understand, and most importantly, protect it keeps falling behind with each consecutive year. Unprotected data is at the risk of getting damaged, lost, hacked or corrupted, endangering both the private and business information of traders. However, the common response to insecurity – tightening regulations and raising compliance standards – is highly inefficient for enterprises, largely due to the increase of operational expenses. Vicente Izquierdo Munoz, internationally acclaimed economics and innovative investment expert, regards blockchain as the solution that can revolutionize the whole industry.
The current Forex trading security procedures involve a number of pre and post-trade systems that heavily rely on humans and computers. The vast amount of third-party mechanisms stretches transaction times and subjects them to error and malfeasance, primarily due to the centralization of data. Furthermore, reporting protocols vary across various regions, making security even harder to manage. As a result, businesses are taking substantial profit losses when making even the simplest of trades. Originally developed as the accounting method for Bitcoin, blockchain is a digital, decentralized, publicly distributed ledger for transactions. Every subsequent, completed transaction – a block – is added to the constantly growing chain. Each computer connected to the network – a nod – receives a copy of the updated blockchain and downloads it automatically, allowing all participants to keep track of contracts without centralized recordkeeping. This mechanism creates an environment where data can be verified by all involved parties, and minimizes the chance for records to be altered, deleted or mismanaged, ultimately solving time and security issues, while decreasing operational expenses.
Global adoption of blockchain technology will allow the immediate exchange of funds, in a highly secure and efficient environment across all markets, reducing the usual Forex settlement date of 'T+2' to 'T+0'. All the transactional information can be passed onto blocks of corresponding trades forming a blockchain, which is then copied to, and can be accessed on, the global, distributed ledger. As noted by Vicente Izquierdo Munoz, a critical aspect of this accounting method is that all available block information is encrypted, which enhances personal information security in addition to improving market transparency. The cryptography system is composed of a public key – a long, randomly generated string of numbers that acts as the blockchain address – and a private key – a different string of numbers that serves as a password, giving the owner access to their personal information and digital assets. This way, brokers, and regulators can easily view clients' and participants' personal information as needed, but otherwise, it's incorruptible. Currently a number of Forex dealers are exploring the opportunities provided by blockchain applications, however, it will take time before wide acceptance can be achieved.
Vicente Izquierdo Munoz is an internationally acclaimed economics and foreign exchange expert, and the co-founder of leading broker market of CFDs trading on currencies, indexes, commodities and stocks. With 17 years of experience behind his belt, Vicente serves both retail institutional entities, providing his clients with advanced technological solutions and offing opportunities to expand their portfolios in over 180 countries across Middle, East, Africa, Europe, Asia and Latin America.
Vicente Izquierdo Munoz - Co-Founder of a Leading Brokerage of CFDs: http://vicenteizquierdomunoznews.com
Vicente Izquierdo Munoz - Discusses Investing Based on Personal Values: https://finance.yahoo.com/news/vicente-izquierdo-munoz-discusses-investing-001500234.html
Vicente Izquierdo Munoz - on Global Trade Competition: https://finance.yahoo.com/news/vicente-izquierdo-munoz-global-trade-162500718.html
Contact Information:
contact@vicenteizquierdomunoznews.com
http://vicenteizquierdomunoznews.com
SOURCE: Vicente Izquierdo Munoz
