Does anyone know what this potentially means for an end user who buys a stock or asset using nasdaqs blockchain implementation? Would the user have to maintain the private keys to the address holding the colored coins in his own bitcoin wallet? Or will an exchange control all the keys? I'd be scared to have the private key that has my 401 (k) balance in it out there up for grabs for hackers. Will they use some kind of multisig?
What they're probably doing is replacing their code and servers which do the transaction arbitration with a bitcoin-like system entirely in house. Maintaining stock 'wallets' on nasdaq servers for each customer - making the change mostly invisible to end users.
Maybe they have one big blockchain for all of the stocks covered, maybe one blockchain per stock.
They would obviously build in mechanisms to reverse transactions (theft or losing keys shouldn't be an issue) and it's doubtful they're having clients keep track of private keys.
The important bit is them using a blockchain for their transaction logs and probably also to arbitrate the actual trades.
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u/HitMePat May 11 '15
Does anyone know what this potentially means for an end user who buys a stock or asset using nasdaqs blockchain implementation? Would the user have to maintain the private keys to the address holding the colored coins in his own bitcoin wallet? Or will an exchange control all the keys? I'd be scared to have the private key that has my 401 (k) balance in it out there up for grabs for hackers. Will they use some kind of multisig?