Wall Streets Cryptocurrency Interest: A Gap in On-Chain ActivityThe podcast delves into the growing interest of Wall Street in cryptocurrency, particularly Bitcoin, as seen through the launch of Bitcoin ETFs by major players like BlackRock and Fidelity. However, this institutional trading is predominantly off-chain, not utilizing blockchain technology directly. This discrepancy underscores the current limitations of blockchain systems in meeting the high performance and reliability standards demanded by Wall Street.Institutions require predictable speed, consistent data access, and operational resilience, which existing blockchains often fail to provide due to issues like congestion, unpredictable transaction fees, and latency. Moreover, the unpredictability of optimistic settlement techniques used in many newer blockchain solutions, which can sometimes lead to transactions being rolled back, is a significant concern for financial firms prioritizing stability and guaranteed outcomes.However, theres a silver lining. Institutions are actively seeking ways to upgrade blockchain technology to meet their needs. This includes developing custom blockchains with features like instruction-level parallelism and deterministic conflict resolution. These advancements aim to process many trades simultaneously without compromising accuracy or speed, effectively eliminating the traffic jams that plague current blockchain networks.The ultimate goal is to create blockchain systems that are not only faster and more reliable than traditional markets but also seamlessly integrate with existing trading software. Once a few firms demonstrate the efficiency and transparency of on-chain trading, the rest of the market is expected to follow, potentially revolutionizing global market operations.

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