The Australian Stock Exchange has fired 200 entrepreneurs working on an aborted blockchain project

The Australian Securities Exchange (ASX) will lay off nearly 200 contractors who have worked to integrate blockchain technology into the CHESS clearing and settlement system.

The news comes after the ASX more dangerous The end of its seven-year venture earlier this month, with the company cutting $170 million in pre-tax losses as a result.

ASX CHESS (Electronic Clearinghouse Sub-Register System) has been around for nearly 25 years and handles the settlement of stock transactions and stock registers on a daily trading volume of approximately $3.19 billion.

company planned In order to innovate the blockchain to give both issuers and end investors “greater control and increased confidence in” the activities of the stock market, providing improved access to the record of holders of securities for issuers of securities.

Independent audit Consulting firm Accenture revealed a myriad of issues impacting the project, including latency and technical limitations around its API, as well as challenges around “achieving scalability, flexibility, and supportability.”

The blockchain project, which began in 2017, has faced delays throughout its lifetime, and its completion was recently delayed Until the end of 2024.

The ASX said though that most of the external staff assigned to the project had been affected by the decision Reuters It retained a minority of external contractors working on the project, some of whom were hired to work on a formal project review or move to other positions in the company.

At its peak, the project had a total of 300 people working on it, approximately 75% of whom were independent contractors.

Despite the problems involved in efforts to reinvent the CHESS system, an ASX spokesperson said in a statement that the existing CHESS infrastructure “remains secure, stable and works well”.

Blockchain projects and mainstream adoption

Blockchain adoption by major corporations has suffered.

The ASX move is not the only shutdown of a major blockchain project the industry has seen in recent weeks.

IBM and shipping giant Maersk They announced that they are closing TradeLensA project aimed at digitizing the global marine ecosystem, which will now close its doors at the end of 2023.

While the Australian Stock Exchange may have dropped its blockchain ambitions, at least for the time being, other exchanges around the world may soon begin testing similar technology.

In September, the European Securities and Markets Agency (ESMA) Plans revealed To start testing trading securities such as stocks and bonds on digital ledgers using distributed ledger technology (DLT).

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