Blockchain News Feed

All the latest news on Blockchain & Cryptocurrencies

Menu
  • Home
  • News
  • Exchanges
  • Market Analysis
  • YouTube
  • Brave Browser
Menu

South Africa’s Central Bank Sees Ethereum Blockchain Only as ‘Backup’

Posted on juni 30, 2018 by Blockchain News
South Africa Reserve Bank (SARB): Virtual Currencies Are 'Cyber-tokens'

The South African Reserve Bank (SARB), South Africa’s Central Bank, has concluded a multi-bank project to test bank-to-bank payment transfers using the Ethereum based platform, Quorum.


Project Khokha is a collaboration of eight South African banks including SARB, Absa, Capitec, Discovery, Investec, FirstRand, Nedbank, and Standard Bank.

70,000 Transactions in Two Hours

The project used the Ethereum blockchain platform Quorum. It aimed to replicate South Africa’s current bank-to-bank payment platform, the South African Multiple Gross Operation Settlement System (SAMOS), using the distributed ledger technology of blockchain.

After a 14-week realistic trial of the bank-to-bank clearance and settlement system, the project has been deemed a success. It replicated transactions rather than using actual transactions but proved that the 70,000 daily transactions handled by SAMOS could be completed using blockchain technology within two hours.

In the trial, each bank involved had a node, or a participating computer, in the Project Khokha Ethereum network. Public cloud servers from Microsoft Azure and Amazon Web Services were also utilized Extra server capability was added to power the computations needed to verify the transactions.

The network was tested with SARB’s node verifying every transaction between the banks and with every bank on the network verifying all transactions. According to SARB the process and validation provided by Quorom delivered a combination of “scalability, resilience, confidentiality, and finality.”

The report published after the tests describes Project Khokha as an initiative in “collaborating for innovation and therefore:

Both the process, as well as the outcome of the project, contribute to the SARB’s goals. The decision was made to assess the use case for DLT in wholesale payments and interbank settlement and thus build on and extend the work done in other parts of the world.

A Backup, Not a Replacement

SARB concluded that a further study is required to establish if distributed ledger technology (DLT), or blockchain technology, is suitable for interbank settlements. The central bank states that key considerations will be how support frameworks integrate, and the legal, regulatory and compliance factors.

According to reports, SARB’s Deputy Governor Francois E. Groepe expects a blockchain-based system to support the existing settlement system as a backup fourth layer if implemented, rather than replacing it.

In May 2018, SARB and Groepe announced that cryptocurrencies do not conform to the traditional definition of money and SARB would prefer to use the term “cyber-token”.

JP Morgan, Quorum’s creator, was considering a spin-off of Quorum to increase its wider adoption, according to reports in March 2018, after its success in global blockchain pilots.

Can blockchain-based settlement networks replace traditional database infrastructure used by banks? Share your thoughts below!


Images courtesy of Shutterstock

The post South Africa’s Central Bank Sees Ethereum Blockchain Only as ‘Backup’ appeared first on Bitcoinist.com.


Source: Bitcoinist.com
Original Post: South Africa’s Central Bank Sees Ethereum Blockchain Only as ‘Backup’

Ledger Nano X - The secure hardware wallet

Meest recente berichten

  • Bitcoin needs clear regulations to be less volatile, Bridgewater analyst says
  • FATF updates guidance on crypto service providers, calls for public comments
  • Chicken and greens: $97B retail firm uses IBM blockchain to track food supply
  • Bitcoin price nears $44K as large Coinbase outflows fail to stop the sell-off
  • One of Switzerland’s leading banks now offers crypto trading

Categorieën

  • Altcoin Buzz
  • Altcoin Buzz News
  • AMBcrypto
  • Bitcoin.com
  • Bitcoinist
  • BTC Manager
  • CCN
  • Coin Mastery
  • Coindesk
  • Coinpower News
  • Cointelegraph
  • CryproSlate
  • Crypto Daily
  • Crypto News (.net)
  • Cryptocoin News
  • Cryptocurrency News
  • CryptoDaily.co.uk
  • CryptoPotato
  • CryptosRUs
  • Daily HODL
  • DataDash
  • Ethereum Worldnews
  • Exchanges
  • ICO's
  • Invest in Blockchain
  • Market Analysis
  • News
  • News BTC
  • Newsbit
  • Portfolio
  • Pricecheck
  • Ready Set Crypto
  • The Modern Investor
  • ToshiTimes
  • Use The Bitcoin

Archief

  • februari 2021
  • januari 2021
  • december 2020
  • november 2020
  • oktober 2020
  • september 2020
  • augustus 2020
  • juli 2020
  • juni 2020
  • mei 2020
  • april 2020
  • maart 2020
  • februari 2020
  • januari 2020
  • december 2019
  • november 2019
  • oktober 2019
  • september 2019
  • augustus 2019
  • juli 2019
  • juni 2019
  • mei 2019
  • april 2019
  • maart 2019
  • februari 2019
  • januari 2019
  • december 2018
  • november 2018
  • oktober 2018
  • september 2018
  • augustus 2018
  • juli 2018
  • juni 2018
  • mei 2018
  • april 2018
  • maart 2018
  • februari 2018
  • januari 2018
  • december 2017
  • oktober 2017
  • september 2017
©2021 Blockchain News Feed | Design: Newspaperly WordPress Theme