Stocks such as Apple, Tesla and Facebook will be available to be traded on Ethereum, according to DX.exchange – a cryptocurrency exchange that offers tokens as shares of companies.
January 04, 2019 | AtoZ Markets – Ethereum’s value has risen in the last couple of weeks. With a hardfork expected later in the month, there are some positive news coming out from the Ethereum camp in recent times. A digital exchange, DX.Exchange, opening next week will allow investors to trade in major traded companies using Ethereum. The move is the first of its kind in the entire Cryptocurrency industry. The exchange which has its offices in Estonia and Israel will go further by allowing trades to occur even when the stock markets are closed.
Stocks That Can Be Traded On Ethereum Blockchain
DX.Exchange will at first offer digital tokens based on 10 Nasdaq-listed companies with plans to expand to new York stock exchange, Tokyo and Hong Kong. Though the companies whose stocks are traded are not involved, investors will still be able to earn same dividend in cash per unit regular share.
Stocks such as Apple, Facebook and Tesla will be available to be traded on Ethereum. The exchange will offer its initial digital stock offering to test investors’ interest in this new idea. However, the company’s CEO Daniel Skowronski told Bloomberg that the company does not offer its services to Americans and therefore wouldn’t need to obtain permission from the US Securities Exchange. In a mail to Bloomberg, Skowronski said:
We saw a huge market opportunity in tokenizing existing securities… We believe that this is the beginning of the traditional market’s merge with blockchain technology.
The company believes by being open 24 hours, it could have an advantage over traditional shares. Currently, its operations are authorized in the European Union. All trades will be carried out on the Ethereum blockchain and investors will be able to buy a fraction of a stock instead of the full share like it’s done in the traditional market. They could also give foreign investors opportunity to buy and sell US shares that were otherwise inaccessible or difficult to access.
Ethereum To Reduce Power Consumption By 99%
In a similar context, the second biggest digital currency was recently reported to have plans of moving from proof-of-work (POW) to proof-of-stake (POS) in the future. This move will apparently reduce energy consumption by 99%. In the past, cryptocurrency mining has faced major accusations of being unfriendly to the environment. Some researchers found that mining is overall bad for the environment. However, a recent research by Coinshare has proved otherwise after it concluded that an estimated 95% of all bitcoin mining operations is largely powered by renewable sources of energy which are not dangerous to the environment.
Just like Bitcoin, Ethereum uses POW as a consensus mechanism to secure the blockchain. However, Vitalik Buterin, Ethereum founder, has emphasized on the amount of energy required to secure the Ethereum blockchain. The migration to POS and the resultant drastic reduction of energy consumption still sounds good.
Ethereum currently trades at $152 after making good recoveries from $82. About a year ago, it hit $1400 to record its highest ever value. It remains to be seen if the current price surge will transcend to a major recovery. Ethereum upcoming hardforks are Classic Vision hardfork, Ethereum Nowa fork and Constantinople fork on 11th, 12th and 16th January respectively.
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