Turkish state exchange Borsa Istanbul (BIST) has developed its own blockchain for customer data storage.
The following announcement was made Wednesday morning on the exchange’s website.
The blockchain platform that will store the new customers’ data and share documents in a decentralized network was created by the BIST’s IT department.
It is also aimed to provide Know Your Customer (KYC) standards, register new customers and secure exchange of information and documents on a "fast, reliable and transparent platform."
The blockchain system synchronized the customer databases of Borsa Istanbul, Istanbul Clearing, Settlement and Custody Bank (Takasbank), and the Central Securities Depository of Turkey's (MKK).
Borsa Istanbul states that the platform is technically perfect and capable of performing a large number of operations, its security infrastructure is borrowed from reliable guarantees provided by the blockchain technology.
One of the biggest improvements of the blockchain technology is that the high number of transactions can be realized without any problems. In this context, the Istanbul Stock Exchange says that the Blockchain network, which they will constantly develop, can be used in other projects where it is necessary.
WHY IS IT IMPORTANT?
- Thanks to the project developed using the "Know Your Customer" (KYC) format, the new customer information can be added to databases and be automatically synchronized with each other, updating the existing information and document management can be done via the financial Blockchain network.
- If the database is now controlled via the Blockchain network, it will ensure that all the human factor errors in the information entry will be prevented. This is one of the biggest advantages of the blockchain technology. At the same time, it will allow the creation of a fast, secure and transparent platform.