Exchanging goods in a digital environment can be tricky.
Even once a counterparty has been found, executing the actual transaction can carry risks – the most problematic being that one side can renege on their side of the trade and run away with the other party’s assets. The risks incurred are fundamentally due to lack of transaction atomicity: in a typical exchange, parts of a trade (securities settlement) or transaction (payment settlement) can succeed while others fail.
This lack of atomicity is problematic and makes it difficult for entities to trade and transact with untrusted counterparties. Ultimately, this leads to a reliance on institutionalized trust and the potential for rent-seeking middlemen to emerge to fulfill this function.
The settlement function, or the act of transferring ownership (settling) inline with the underlying agreement between parties, is well-established… (Read Full Report Now)
Free On-demand Webinar — “The State of Institutional Remittance”
You’ve read the report – now hear what the experts have to say. Click on the link to watch, “The State of Institutional Remittance,” hosted by The Block.
The webinar is hosted by The Block’s Frank Chaparrow with panelists: