How the ‘Dole Stock Crisis’ is Reigniting the Push for Blockchain

Earlier this year, a rare window opened into the way the stock market currently operates when a class action lawsuit revealed that there were recently 12 million more shares of Dole Foods than the company thought existed.

Patrick Byrne, Overstock CEO, in 2004 first encountered the so-called ‘slop’ in the financial system resulting from two main issues: 1) it takes three days for a trade to settle, and 2) the beneficiary of a stock rarely ever actually owns the stock, but rather an IOU.

Byrne describes the Dole discrepancies as an “expression” of the way the current system is “architected”, adding that without a certainty of how many stocks actually exist at any time, the price people are paying is little more than a guess at the actual value.

Blockchains, Byrne argues, both clarify who actually owns the stock, and make the time between when a stock is sold, and cleared, nearly instant.
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Matthew Olckers

Editor at Talan
Matthew's interests in innovation are in the financial services and education sectors. He joined the Talan Innovation team in September 2014, and focusses on the improvement of the user experience. Matthew is a Masters in Economics student at Paris 1: Panthéon-Sorbonne.

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