Microsoft will provide Azure-based blockchain services for Nasdaq's modular financial framework systems. This week, a Microsoft press release revealed a new partnership between the cloud-based Azure service and Nasdaq's financial services provider to provide blockchain-based integration for the Financial Framework system widely used by this .
Part of Nasdaq's commercial technology arm, known as Market Technology, the Financial Framework – launched in 2016 as a modular system that allows users to access a wide range of applications and financial systems that can be applied as needed – it is used in some form of trade , clearing houses and deposits all over the world. The Microsoft partnership is now intended to add cross-ledger blockchain functionality to that software portfolio.
"Our [capital markets] the industry is evolving faster than ever with the advent and advancement of cloud, blockchain, machine intelligence and others, "said Magnus Haglind, senior vice president and head of product management for the industry technology of the Nasdaq market. "The main players in the sector are looking for these technologies to explore how they can become more effective and efficient, but also gain a competitive advantage"
The plan provides that Azure will contribute to secure interaction and communication between the major software systems of the Nasdaq Financial Framework, the middleware modules that use it and the customer's IT systems. To do this, it will use a suite of blockchain-based microservices to execute transactions and contracts, recording all these interactions in its registers.
According to Microsoft, Nasdaq sees the immediate opportunity for blockchain to manage the delivery, payment and settlement of transactions. Its systems will be there to ensure that this can happen even when several companies are using different blockchains and payment mechanisms.
"With several blockchains in use by various industry participants, we believe that the combination of NFF and Microsoft's blockchain technology can remove some of the existing project complexes in this area," said Tom Fay, Senior Vice President of Enterprise Architecture. Nasdaq.
"Furthermore, as more and more industries move towards technology and capital market structures, we see the potential for the blockchain to provide value in the secure, frictionless, instant match of buyers and sellers."
Given that Nasdaq seems to move forward with the integration of blockchain into its services, it seems that Microsoft is trying to make these new services as simple and friction-free as possible for its customers. This is part of a growing understanding among blockchain service providers that such systems must be as transparent as possible and that the user experience is the key to the adoption of distributed ledger technology.
As Daniel Larimer, creator of EOS, said in a recent interview: "Blockchain will be strongly adopted when people no longer speak of blockchain".
"To get from where we are today to there," said Larimer, "it is a matter of ensuring that existing companies and proven business models to upgrade their software to the use of blockchain offer users greater security" .
"These capabilities will also allow capital market organizations to use any NFF-based application that incorporates blockchain technologies without the need for specific accounting skills or knowledge," says Nasdaq's Tom Fay, echoing this. He believes that this is "critical as the industry pursues new cases of use for generalized accounting technology".
"From our point of view," he concluded, "Azure is unlocking the power of the blockchain by removing the greater complexity."
This, "said Fay," provides a layer of abstraction, making our offer smoother, safer, highly scalable and ultimately helps us continue to explore a much broader range of customer use cases for blockchain. " .