First blockchain-based market index goes live

     Brave New Coin (BNC), a data and research company based in Queenstown, New Zealand, announced today that it has developed the first self-certifiable financial market index with Melbourne-based Smartbit, with the first product being the BNC Bitcoin Liquid Index (BNC-BLX).

     Providing "self-verifiable market data" has been almost impossible or very difficult in the past. Through this partnership, it will be done through a process called "Market-Chaining", which can place market indices, quotes and transaction data securely on the blockchain to provide tamper-proof proof.

Fran Strajnar, CEO of BNC, said:

     “Imagine putting the S&P 500 index on a blockchain. Any service, human or machine could use it for settlement when needed.”

     The first data source will be the BNC Bitcoin Liquid Index, which provides historical and real-time Bitcoin index data for the settlement of Bitcoin-related financial derivative services. This is an exciting new solution provided by financial service providers using blockchain technology. Just like "Proof of Reserve", the market demand for "Proof of Settlement" is growing rapidly, so the market chain can provide a new way of verification and auditing.

     “This partnership will redefine BNC’s position in the industry and make the company’s service offerings more powerful and in-depth. BNC will continue to expand the range of solutions and develop tools for the market. This first project is just the beginning of a larger project to bring financial and blockchain data together in a more accurate and transparent way.”

     There are many advantages to using market chains, such as assets can be registered on the blockchain through index providers, and when they are used for settlement, sales or other purposes, anyone or a third party can verify the legitimacy. It also has a huge impact on transaction auditing and settlement, such as providing a verification layer directly when trying to combine brokerage quotes, trading or settlement systems with index sources.

     According to BNC, the biggest benefit for institutions is that they can fully satisfy customer trust and be able to automatically audit transaction prices on the blockchain. This is the first time that a mathematical protocol has been used to replace the central authority of the past, so both customers and institutions are on the same footing. This should give customers great confidence to participate in the services provided by the company.

     The indices provided by the market chain are ready for exchanges and brokerage companies to provide trading and quotation solutions in the new year. BNC and SmartBit expect to promote the launch of self-certified indices from multiple financial institutions in early 2016.