When it comes to financial transactions, time synchronization accuracy of all connected elements in a trading system is a critical, yet difficult, challenge. Distributed ledger technology (DLT) is transforming trade and trade financing creating disruption in spaces typically occupied by traditional information repository methods and ledgers. The use of DLT brings timing considerations of its own.
Financial industry timing regulations are stringent, mandating that time synchronization be accurate to 100 microseconds. With the goal of eliminating fraudulent security trades, regulations specifically call for:
- Accuracy of financial reporting based on proper time
- Documentation of when a transaction occurred or did not, which helps in digital forensics
- Protection from change in consumer information and/or timing of modifying records
Inaccurate time in an organization’s network, as well as the impact of this error on financial applications, may result in legal action.
DLT networks and their underlying infrastructure are held to the same time synchronization accuracy requirements demanded of financial institutions. This makes precision timing a critical enabler creating a trusted environment for real-time DLT transactions. ATIS’ Time and Money 2020 sheds light on the critical role of timing and synchronization in enabling secure transactions within a DLT environment. Join us to learn about timing’s role in advancing the DLT revolution.