Trading on the New York Stock Exchange (NYSE) was suddenly halted today following a steep 99.97% drop in the value of Berkshire Hathaway’s Class A shares. The stock last traded at $185.10, down from $627,214.90. The halt, categorized as M, was triggered due to volatility, and the cause of the sudden decline remains unclear.

In a related incident, a glitch at the NYSE operator caused trading halts due to volatility in approximately twelve other companies, according to Bloomberg. This incident follows a recent trend of technical issues affecting major exchanges. For instance, on March 18, the Nasdaq experienced a three-hour disruption in premarket trading due to connectivity problems with its matching engine, as reported by the Bangkok Post.

The Depository Trust & Clearing Corporation (DTCC) is currently testing blockchain technology in partnership with Chainlink to expedite settlements for mutual funds. However, recent events suggest that the stock market may benefit from blockchain more than previously anticipated. Chainlink’s decentralized oracle network could potentially address such issues by providing accurate and trustworthy data feeds.

Chainlink aggregates data from multiple independent sources and uses consensus mechanisms to validate information before it is integrated into the blockchain. This approach ensures data integrity, reducing the risk of manipulation or errors common in centralized systems. Additionally, Chainlink offers real-time data verification capabilities, swiftly identifying and rectifying discrepancies to prevent incorrect trades and price fluctuations.

Smart contracts powered by Chainlink can automatically respond to predefined conditions, such as significant deviations in stock prices, by halting trading or triggering alerts. This automated response enables prompt investigation and resolution of issues, thereby bolstering market stability.

By leveraging Chainlink’s decentralized oracle network, stock exchanges can enhance transparency and trust among participants. The decentralized nature of data feeds ensures no single entity controls the data, mitigating risks of manipulation and fostering greater confidence in market operations.

Ultimately, blockchain technology, particularly Chainlink’s decentralized and tamper-resistant data feeds, coupled with its real-time verification capabilities, could substantially mitigate risks associated with glitches and erroneous trades in stock exchanges. This could significantly improve the overall reliability and stability of the trading environment.