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Chainlink Could Fix Today’s NYSE Stock Market Glitch As Berkshire Hathaway Appears Down 99%
Trading on the New York Stock Exchange (NYSE) fell sharply stopped today, after Berkshire Hathaway Class A shares suffered a dramatic 99.97% drop in value. The stock last traded at $185.10, down from $627,214.90. The stop, coded as M, was triggered by volatility and the cause of the sudden drop remains unclear.
In a related incident, a technical issue at the NYSE operator caused volatility trading at about a dozen other companies to halt, as Bloomberg reported. This follows a recent pattern of technical issues affecting major exchanges. For example, on March 18, the Nasdaq faced a three-hour interruption in pre-market trading due to connectivity issues with its matching engine, as reported from the Bangkok Post.
The DTCC is currently in the testing phase using blockchain technology with Chainlink for faster liquidations of mutual funds, but it seems the stock market may need blockchain more than it thought. Chainlink decentralized oracle network could solve such problems by providing accurate and reliable data feeds. Chainlink uses multiple independent data providers to ensure data accuracy and tamper-proof, reducing the risk of single points of failure common in centralized systems. This decentralized approach improves security and reliability, which is critical for trading systems where timely and accurate data is essential.
Chainlink oracles aggregate data from various sources and use consensus mechanisms to validate the information before it is entered into the blockchain. This process ensures the integrity of the data, preventing its manipulation or corruption. Additionally, Chainlink can provide real-time data verification, quickly identifying and correcting discrepancies to prevent erroneous trades and price swings.
Smart contracts supported by Chainlink can automate responses to certain conditions, such as significant stock price deviations, halting trades, or triggering alerts. This automation enables immediate action to investigate and resolve issues, improving market stability.
By leveraging Chainlink’s decentralized oracle network, exchanges can improve transparency and trust among market participants. The decentralized nature of data feeds ensures that no single entity controls the data, reducing the risks of manipulation and increasing market trust.
Ultimately, blockchain technology, particularly Chainlink’s decentralized, tamper-proof data feeds and real-time verification capabilities, could significantly mitigate the risk of technical issues and misoperations on stock exchanges by improving trustworthiness and the overall stability of the trading environment.