VeChain partners with Walmart, BYD, DNG VL and BMW

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Related:

  • No Related Posts

Travelport, IBM Collaborate on Blockchain for Hotel Commissions

Travelport, a business and consumer travel services provider, announced it is using IBM’s Hyperledger Fabric to guarantee commissions paid to travel agencies.

According to a statement released on August 20, the blockchain was designed with input from IBM, travel management company BCD Travel, and three unnamed hotel chains. The system aims to “put the lifecycle of a booking on the blockchain,” to reduce the amount of payment disputes.

In 2018, Travelport processed over $83 billion of travel spend over $2.4 billion in net revenue.

“Traveler modifications at property, no shows, and complimentary room nights are just a few examples that drive commission discrepancies which in turn generate escalations, cost, and revenue loss,” said Ross Vinograd, Travelport’s Senior Product Director.

“The traveler can modify their booking multiple times, leaving room for information to go missing. For example, if a traveler arrives and then extends a hotel stay, that information might not make its way back to us as booking data,” said Marwan Batrouni, Vice President of Global Hotel Strategy, BCD Travel. Additionally, blockchain will help close the “gaps” made by different payments systems.

The blockchain will track, manage, and account for commissions owed to booking agents on behalf of hotel chains. Blockchain tech will ensure that payments are more accurate and quicker than the current, manual method.

If successful, this may improve business for travel agents, who currently wait 60 days after their clients check out to earn their commission. Thirty-four percent of travel agents find commission reconciliation and collection difficult, according to Travelport industry surveys, as reported by Ledger Insights.

Still in the proof-of-concept phase, during the coming pilot testing IBM will host the nodes. If the project gets off the ground, hotels will be able to host their own nodes.

In a separate statement anticipating the official announcement, Vinograd said:

“With travelers having endless options for accommodations, a booking alone is not enough to provide a commission to an agency… With blockchain, we’re able to reduce costs and ease burdens for all parties involved by improving transparency, accuracy and efficiencies to enhance the process.”

IBM image via CoinDesk archives

Related:

  • No Related Posts

ZakatTech Blockchain to track zakat collection

It is expected to enhance end-to-end Shariah compliance for the halal and Islamic finance industries

by AFIQ AZIZ/ pic by TMR

THE detailed and transparent movement of alms (zakat), from the moment of collection to the point of disbursement, could soon be tracked via ZakatTech, a pilot project that is expected to be introduced by the fourth quarter of the year.

Spearheaded by the International Shariah Research Academy for Islamic Finance (ISRA) and SysCode Sdn Bhd, the project is also the first Islamic finance transaction platform that is based on blockchain technology.

SysCode CEO Reza Ismail told The Malaysian Reserve the project is also expected to enhance end-to-end Shariah compliance for the halal and Islamic finance industries.

He said ZakatTech Blockchain would enable the tracking of funds throughout the whole process.

“Transactions are recorded via a custom asset structure which enables tracing and tracking of donated funds at an unprecedented level,” he said.

He said with such levels of transparency and traceability, the confidence of the general public to donate zakat through verified channels could be further enhanced.

“Accordingly, the total zakat collection and its distribution towards the needy can be increased and upscaling of the societal socio-economy can be effectively implemented,” he said.

Reza said the platform’s sandbox environment is already fully functional and ready to begin pilot implementations.

“Most of the Pusat Pungutan Zakat (PPZ) institutions are already aware of this initiative as we have introduced it to them in a regional muzakarah in Brunei recently.

“We are presenting to specific parties who can pilot this project towards the end of 2019. We will announce these parties accordingly when the time is right,” he added.

As it is, zakat collection and distribution involves millions of records, which are also one of the most transacted data in the country, making traceability a pivotal element in the whole transactional processes.

Last year alone, Selangor, Wilayah Persekutuan Kuala Lumpur, Putrajaya and Labuan collected a total of RM1.4 billion in zakat from about 437,000 contributors, which served over 150,000 qualified asnaf — the needy according to Islamic law.

PPZ-Majlis Agama Islam Wilayah Persekutuan alone had aimed to collect RM710 million of zakat this year, forecasting the number to reach RM1 billion by 2023.

In 2018, the agency collected RM651 million worth of zakat from 180,985 contributors where RM551.56 million was distributed to 110,045 asnaf in the same year.

In Selangor, where 52.5% of the 5.8 million residents are Muslims, the targeted zakat collection is RM900 million to accommodate more than 40,000 asnaf.

Reza said blockchain would be the best method in addressing transparency and traceability concerns regarding zakat.

“Current technology cannot ensure full transparency and traceability for

this type of transactions, where the database is built for the purpose of recording and presenting data in different forms such as strings, numbers and alphabets.

“Blockchain technology is built for the purpose of recording and securing data through the implementation of a mathematical model. Therefore, the technology proposition here is totally different.

“This ensures data integrity from the point of origin to the final point of consumption (of the said data). Using said mathematical models, we can be assured at any point of time that the data has not been tampered with, because we can calculate it,” Reza said.

Meanwhile, ISRA ED Prof Dr Mohamad Akram Laldin (picture) said the ZakatTech project would enhance the zakat ecosystem, which different zakat institutions can connect with.

“It is not an application by itself, rather a service that enables zakat institutions to use a blockchain platform to record and trace their transactions.

“Each participating zakat institution will be able to participate via its own existing application. However, a standard application will be developed by our team.

“In addition, zakat institutions will also be able to maintain and connect to their own database management systems, if they opt to. This will enable zakat institutions to manage the proceeds, and connect zakat payers and recipients in a more effective and efficient way,” Mohamad Akram said.

Reza said the platform is built on a federated blockchain environment powered by Hyperledger Blockchain Fabric, with its root nodes deployed on a custom-built cloud platform powered by Microsoft Azure.

Hyperledger is an open-source engine for business blockchain, and takes care of the most important features for evaluating and using blockchain for business use cases, while Microsoft Azure is a cloud computing service created by Microsoft Corp for building, testing, deploying and managing applications and services through Microsoftmanaged data centres.

Reza said the Hyperledger implementation does not require a “tokenised” environment, or any miners to be involved in its transactions.

“Instead, Hyperledger utilises endorsement policies by organisations and peers participating in the transaction. The Hyperledger endorsement policies are fully customisable and the platform implements different policies based on different types of transactions.

“This is in line with the objective of enabling various types of institutions to use blockchain as a service to enhance Shariah compliance,” he said.

Related:

  • No Related Posts

Dagchain versus Hyperledger | Comparison 2019

Blockchain innovation has been around since 2008. That is the point at which a pseudonymous individual or a group of individuals called Satoshi Nakamoto distributed a paper reporting the new innovation. From that point forward, cryptocurrency dependent on blockchain advancements, as Bitcoin and Litecoin, have multiplied broadly.

Such a large number of digital currencies have jumped up over the previous decade that the entire subject can feel overpowering. In this article, we’ll demystify the ideas of digital money and the innovation that it’s based on and talk about the contrasts among Dagchain and Hyperledger.

Hyperledger

Dagchain HyperledgerDagchain Hyperledger

The Hyperledger venture is a communitarian exertion propelled by the Linux Foundation in 2016. Its expressed point is to unite individuals from various ventures so as to investigate the uses of blockchain innovation. The Hyperledger task does not have its own cryptocurrency. It plans to progress blockchain innovation and think of new uses for it.

Hyperledger’s individuals incorporate pioneers from the banking, figuring, and aeronautics ventures. Its individuals incorporate Airbus, American Express, Cisco, and Deutsche Bank, to give some examples.

Hyperledger records a scope of various activities on its site, all including better approaches to utilize blockchain innovation. For instance, the project known as Burrow is gone for improving the manner in which keen contracts work, and the Hyperledger Quilt is intended to make installments and exchanges simpler crosswise over various records.

Issues with Hyperledger

The Hyperledger venture has created a few advancements in the field of blockchain innovation, yet the project works in an unbending top-down design. The general population and gatherings that remain to profit the most from it are as of now in the worldwide one percent. The Hyperledger project needs clear and quick advantage for the vast majority of the world’s residents, particularly for those in developing countries.

Dagchain

Dagchain is the innovation that backs the cryptocurrency known as Dagcoin. It was made because of the deficiencies in blockchain innovation, which we’ll get into later in this content piece.

Dagcoin

Dagchain HyperledgerDagchain Hyperledger

Dagcoin is the money sponsored by Dagchain. It was considered with the objective of making a decentralized digital currency for use in developing nations. The thought was to enable common individuals to adapt to a general sense uncalled for framework and to help individuals manage the issues brought about by money depreciation.

The Dagcoin cryptographic money is planned to be much the same as a normal cash, just better. Rather than simply one more item to trade, Dagcoin will likely be the most usable currency ever.

Dagcoin expects to be a stage up from normal cash also. This implies improving the speed of exchanges while diminishing the cost, offering access to cash to more individuals with lesser confinements and impediments, giving more opportunity to execute.

How Is Dagchain Different from Hyperledger?

Dagchain does not work on a blockchain arrangement. It’s anything but a progression of blocks; rather, each different exchange frames its own block. The blocks are then connected to past exchanges so as to shape what’s known as a coordinated non-cyclic chart, or DAG.

The Dagchain was intended to be brisk moving and solid enough to back a typical currency. It was intended to democratize cryptocurrency and increment its versatility. While industry pioneers and huge business are free to utilize Dagcoin, the innovation was initially intended for use in the developing scene. It was planned to keep running as easily as could be expected under the circumstances and to be available to individuals who might not have foundations in innovation.

In contrast to different digital forms of money, it doesn’t depend on miners/diggers to affirm exchanges. Dagchain has each new individual from the system affirm in any event one past exchange. This implies there is no two-level framework, as there is in different cryptocurrencies, in which miners/diggers are advantaged over different clients. It likewise implies that there is a motivating force to keep Dagchain working rapidly, since each new client needs to affirm past exchanges before including their own exchange.

The Breakdown:

Dagchain is new innovation that looks to cure issues that emerged with blockchain innovation. It makes digital currency available to individuals around the globe. It Speeds up the affirmation procedure for exchanges and wipes out the two-level framework in many cryptographic forms of money.

Hyperledger runs on blockchain innovation, backs blockchain undertakings bolstered by figuring, aeronautics, and banking pioneers. It does not host a cryptographic money.

Concluding Thoughts

Dagchain and Hyperledger differ in the way they work just as in their planned uses. Albeit both have their underlying foundations in blockchain’s “distributed ledger” framework, Hyperledger means to investigate new uses for blockchain, while Dagchain stays away from it altogether with an end goal to expand exchange speeds while diminishing or wiping out expenses.

They were additionally made considering entirely various uses; Hyperledger expects to streamline installments and exchanges for enormous banks, while Dagcoin was imagined with an end goal to make a steady, decentralized cash to help clients in creating nations. On its way of becoming the cryptocurrency of the future, Dagcoin also educates the masses through marketing by providing knowledge about the benefits of digital currencies.

Related:

  • No Related Posts

Dagchain vs. Hyperledger | Comparison & Differences

Blockchain technology has been around since 2008. That’s when a pseudonymous individual or group called Satoshi Nakamoto published a paper announcing the new technology. Since then, cryptocurrencies based on blockchain technologies, like Bitcoin and Litecoin, have proliferated widely.

So many cryptocurrencies have sprung up over the past decade that the whole subject can feel overwhelming. In this article, we’ll demystify the concepts of cryptocurrency and the technology that it’s built on and talk about the differences between Dagchain and Hyperledger.

What Is Dagchain?

Dagchain is the technology that backs the cryptocurrency known as Dagcoin. It was created in response to the shortcomings in blockchain technology, which we’ll get into later in this article.

What Is Blockchain Technology?

Blockchain is the technology that supports Bitcoin, Ethereum, and other digital cryptocurrencies. Blockchain technology also underpins smart contracts and other decentralized applications, or “dapps.” There are seemingly endless uses for blockchain technology. Its supporters say that the technology takes power out of the hands of central authorities – governments, banks, and legal systems – and empowers ordinary people.

Eventually, blockchain fans say, the technology could take over virtually any operation that is currently performed by intermediaries. This means that loans, voting systems, and, of course, currency exchanges could eventually be handled by blockchain technology.

Blockchain’s critics say that technology has made it easier for criminals to launder money and avoid currency tracing when paying each other for illegal goods and services.

What Is Hyperledger?

The Hyperledger project is a collaborative effort launched by the Linux Foundation in 2016. Its stated aim is to bring together people from different industries in order to explore the uses of blockchain technology. The Hyperledger project does not have its own cryptocurrency. It aims to advance blockchain technology and come up with new uses for it.

Hyperledger’s members include leaders from the banking, computing, and aviation industries. Its members include Airbus, American Express, Cisco, and Deutsche Bank, to name just a few.

Hyperledger lists a range of different projects on its website, all involving new ways to use blockchain technology. For example, the project known as Burrow is aimed at improving the way smart contracts operate, and the Hyperledger Quilt is designed to make payments and transactions easier across different ledgers.

Problems with Hyperledger

The Hyperledger project has generated several innovations in the field of blockchain technology, but the project operates in a rigid top-down fashion. The people and groups that stand to benefit the most from it are already in the global one percent. The Hyperledger project lacks clear and immediate benefit for most of the world’s citizens, especially for those in developing nations.

What Is Dagcoin?

Dagcoin is the currency backed by Dagchain. Dagcoin was created with the goal of having a decentralized cryptocurrency for use in developing countries. The idea was to help ordinary people cope with a fundamentally unfair system and to help people deal with the problems caused by currency devaluation.

The Dagcoin cryptocurrency is intended to be just like an ordinary currency, only better. Instead of just another commodity to trade, our goal is the make Dagcoin the most usable cryptocurrency ever.

In addition, Dagcoin aims to be a step up from regular money as well. This means improving the speed of transactions while reducing the cost, giving access to money to more people with lesser restrictions and limitations, giving more freedom to transact.

How Is Dagchain Different from Hyperledger?

Dagchain does not operate on a blockchain network. It is not a series of blocks; rather, each separate transaction forms its own block. The blocks are then linked to previous transactions in order to form what’s known as a directed acyclic graph, or DAG.

The Dagchain was designed to be quick-moving and reliable enough to back a normal currency. It was designed to democratize cryptocurrency and increase its scalability. While industry leaders and big business are welcome to use Dagcoin, the technology was originally designed for use in the developing world. It was intended to run as smoothly as possible and to be accessible to people who may not have backgrounds in technology.



Unlike other cryptocurrencies, it does not rely on miners to confirm transactions. Dagchain has every new member of the network confirm at least one previous transaction. This means that there is no two-tier system, as there is in other cryptocurrencies, in which miners are privileged over other users. It also means that there is an incentive to keep Dagchain operating quickly since each new user needs to confirm previous transactions before adding their own transaction.

The Breakdown

Dagchain:

  • Is new technology that seeks to remedy problems that arose with blockchain technology
  • Makes cryptocurrency accessible to people around the world
  • Speeds up the confirmation process for transactions and eliminates the two-tier system in most cryptocurrencies

Hyperledger:

  • Runs on blockchain technology
  • Backs blockchain projects supported by computing, aviation, and banking leaders
  • Does not host a cryptocurrency

Final Thoughts

Dagchain and Hyperledger differ in how they operate as well as in their intended uses. Hyperledger aims to explore new uses for blockchain, while Dagchain avoids it entirely in an effort to increase transaction speeds while reducing or eliminating fees.

They were also created with wholly different uses in mind; Hyperledger aims to streamline payments and transactions for large banks, while Dagcoin was conceived in an effort to create a stable, decentralized currency to help users in developing countries.

Nils Grossberg is an entrepreneur from Tartu, Estonia. Nils Grossberg graduated from the University of Tartu with a bachelor’s degree in History. He is the co-founder and former CEO of Dagcoin OÜ, the software company behind the development of Dagcoin cryptocurrency and its ecosystem.

Related:

  • No Related Posts

Blockchain Platforms Software Market Overview and Future Scope With Top Key Players – IBM …

This research report is equipped with the information categorising for Blockchain Platforms Software Market by parameters such as players, brands, regions, types and application. The report also details the information about the global market status, competition landscape, growth rate, future trends, market drivers, challenges, opportunities and porter’s forces analysis with respect to these elements.

Blockchain Platforms Software Market :- Reports Intellect represents the detail analysis of the parent market based on elite players, present, past and futuristic data which will offer as a profitable guide for all Blockchain Platforms Software Market competitors. The overall analysis Advanced Blockchain Platforms Software Market covers an overview of the industry policies that Blockchain Platforms Software Market significantly, the cost structure of the products available in the market, and their manufacturing chain.

You can get the sample copy of this report now @ https://www.reportsintellect.com/sample-request/733064

Key Companies Covered : IBM, Intel, Microsoft, Ethereum, Ripple, Quorum, Hyperledger, R3 Corda, EOS, OpenChain, Stellar, SAP, Amazon, Mastercard

Most Important Types : Private, Public, Consortium

Most Important Application : E-Commerce, Finance, Medicine, Real Estate, Others

Geographical Regions for Blockchain Platforms Software Market: Geographically, North America is largest market for Blockchain Platforms Software Market, followed by Europe, Asia Pacific, and Row. APAC region is expected to witness highest growth in forecast period. Rising R&D funding for development of microscopes, increasing nanotechnology research, low material costs, and growing expertise and academic excellence in emerging APAC countries such as China and India are the major factors driving the growth of this market.

Get Instant discount @ https://www.reportsintellect.com/discount-request/733064

Overview of the chapters analysing the Blockchain Platforms Software Market in detail

Chapter 1 details the information relating to Blockchain Platforms Software Market introduction, Scope of the product, market overview, Market risks, driving forces of the market, etc

Chapter 2 analyses the top manufacturers of the for Blockchain Platforms Software Market by sales, revenue etc for the period 2019 to 2024

Chapter 3 throws light on the competition landscape amongst the top manufacturers based on sales, revenue, market share etc for the period 2019 to 2024.

Chapter 4 analyses the global market by regions and their market share, sales, revenue etc for the period 2019 to 2024.

Chapters 5 to 9 analyse the key regions with key countries based on market share, revenue, sales etc.

Chapter 10 and 11 contain the information about market basis type and application, sales market share, growth rate etc for the period 2019 to 2024.

Chapter 12 focuses on the market forecast for 2019 to 2024 for the Patient Derived Continuous for Blockchain Platforms Software Market by regions, type and application, sales and revenue.

Chapter 13 to 15 contain the details related to sales channels, distributors, traders, dealers, research findings, research findings, and conclusion etc for the for Blockchain Platforms Software Market.

Reasons why you should buy this report :

Understand the current and future of the for Blockchain Platforms Software Market in both developed and emerging markets.

The report assists in realigning the business strategies by highlighting the key business priorities.

The report throws light on the segment expected to dominate the for Blockchain Platforms Software Market

Forecasts the regions expected to witness fastest growth.

The latest developments in the Patient Derived for Blockchain Platforms Software Market and details of the market leaders along with their market share and strategies.

Saves time on the entry level research as the report contains vital information about growth, size, leading players and segments of the market.

The forecast assist in drafting expansion plans in business.

About Us:

Reports Intellect is your one-stop solution for everything related to market research and market intelligence. We understand the importance of market intelligence and its need in today’s competitive world.

Our professional team works hard to fetch the most authentic research reports backed with impeccable data figures which guarantee outstanding results every time for you.

So whether it is the latest report from the researchers or a custom requirement, our team is here to help you in the best possible way.

Contact Us:

sales@reportsintellect.com

PH – +1-706-996-2486

US Address:

225 Peachtree Street NE,

Suite 400,

Atlanta, GA 30303,

Related:

  • No Related Posts

Blockchain Platforms Software Market Demand, Size, Trends, Development, Opportunity, Growth …

Blockchain Platforms Software Marketreport offers a comprehensive valuation of the marketplace. It does so via in-depth comprehensions, grateful market growth by pursuing past developments, and studying the present situation and future forecasts based on progressive and likely areas. Each research report supports as a depository of analysis and data for each and every side of the industry, including but not limited to: Regional markets, types, applications, technology developments and the competitive landscape.

Blockchain Platforms Software Market :- Reports Intellect represents the detail analysis of the parent market based on elite players, present, past and futuristic data which will offer as a profitable guide for all Blockchain Platforms Software Market competitors. The overall analysis Advanced Blockchain Platforms Software Market covers an overview of the industry policies that Blockchain Platforms Software Market significantly, the cost structure of the products available in the market, and their manufacturing chain.

Get Sample Copy of this Report at @ https://www.reportsintellect.com/sample-request/733064

The regional analysis of Global Blockchain Platforms Software Market is considered for the key regions such as Asia Pacific, North America, Europe, Latin America and Rest of the World. North America is the leading region across the world in terms of market share. Whereas, owing to rapid economic growth in countries such as China, India, and Japan, Asia Pacific region is also expected to exhibit higher growth rate / CAGR over the forecast period 2019-2024.

Some of the leading market players include : IBM, Intel, Microsoft, Ethereum, Ripple, Quorum, Hyperledger, R3 Corda, EOS, OpenChain, Stellar, SAP, Amazon, Mastercard

Market Segment by Type : Private,Public, Consortium

Market Segment by Applications : E-Commerce, Finance, Medicine., Real Estate, Others

Geographical Regions for Blockchain Platforms Software Market: Geographically, North America is largest market for Blockchain Platforms Software Market, followed by Europe, Asia Pacific, and Row. APAC region is expected to witness highest growth in forecast period. Rising R&D funding for development of microscopes, increasing nanotechnology research, low material costs, and growing expertise and academic excellence in emerging APAC countries such as China and India are the major factors driving the growth of this market.

Get Instant discount @ https://www.reportsintellect.com/discount-request/733064

Overview of the chapters analysing the Blockchain Platforms Software Market in detail

Chapter 1 details the information relating to Blockchain Platforms Software Market introduction, Scope of the product, market overview, Market risks, driving forces of the market, etc

Chapter 2 analyses the top manufacturers of the for Blockchain Platforms Software Market by sales, revenue etc for the period 2019 to 2024

Chapter 3 throws light on the competition landscape amongst the top manufacturers based on sales, revenue, market share etc for the period 2019 to 2024.

Chapter 4 analyses the global market by regions and their market share, sales, revenue etc for the period 2019 to 2024.

Chapters 5 to 9 analyse the key regions with key countries based on market share, revenue, sales etc.

Chapter 10 and 11 contain the information about market basis type and application, sales market share, growth rate etc for the period 2019 to 2024.

Chapter 12 focuses on the market forecast for 2019 to 2024 for the Patient Derived Continuous for Blockchain Platforms Software Market by regions, type and application, sales and revenue.

Chapter 13 to 15 contain the details related to sales channels, distributors, traders, dealers, research findings, research findings, and conclusion etc for the for Blockchain Platforms Software Market.

Reasons why you should buy this report :

Understand the current and future of the for Blockchain Platforms Software Market in both developed and emerging markets.

The report assists in realigning the business strategies by highlighting the key business priorities.

The report throws light on the segment expected to dominate the for Blockchain Platforms Software Market

Forecasts the regions expected to witness fastest growth.

The latest developments in the Patient Derived for Blockchain Platforms Software Market and details of the market leaders along with their market share and strategies.

Saves time on the entry level research as the report contains vital information about growth, size, leading players and segments of the market.

The forecast assist in drafting expansion plans in business.

About Us:

Reports Intellect is your one-stop solution for everything related to market research and market intelligence. We understand the importance of market intelligence and its need in today’s competitive world.

Our professional team works hard to fetch the most authentic research reports backed with impeccable data figures which guarantee outstanding results every time for you.

So whether it is the latest report from the researchers or a custom requirement, our team is here to help you in the best possible way.

Contact Us:

sales@reportsintellect.com

PH – +1-706-996-2486

US Address:

225 Peachtree Street NE,

Suite 400,

Atlanta, GA 30303

Related:

  • No Related Posts

Russian Bank Sberbank to Seek Alternatives to ‘Inefficient’ Central Bank-Backed Masterchain

Sberbank, Russia’s largest lender, is to scale down its participation in Masterchain, a blockchain project led by the country’s central bank, calling it “ineffiecient, insecure and slow”.

Oleg Abdrashitov, head of Sberbank’s blockchain lab, told Coindesk the institution was winding down its participation in Masterchain and would seek opportunities using more widely-proven enterprize blockchain platforms.

Coindesk reported Abdrashitov as saying:

Masterchain does not satisfy the requirements for Sberbank’s use cases, so for all future exploration we will use enterprise blockchain platforms such as Hyperledger Fabric or Quorum.

Mortgage Bond Custody

By March 2017, Sberbank was in control of around half of Russia’s mortgage market reported Vedomosti, the press-service of the state-backed institution.

Indeed, the primary use case Sberbank intended for the enterprize platform was as a decentralized depository for digital mortgage bonds.

Such a use case could potentially save Sberbank millions of dollars a year by cutting out the National Settlement Depository, a Moscow-based exchange group and clearing facility that charges a small fee per mortgage bond it holds as custodian.

Masterchain Launch Delayed

The Masterchain trial use case started last autumn and was set to be deployed in August, but this launch date has been delayed as technical developments have slowed.

Masterchain was conceived from a fork in the Ethereum blockchain, and built according to laws regulating the use of cryptography, which is highly restricted in Russia. This means the system is highly centralized.

Abrashitov also told Coindesk the system was too “slow and insecure”, with a single mortgage bond taking three minutes to upload onto the Masterchain.

He said: “Business people are not used to dealing with something where you push a button and then you go take a break [until it works]. The leadership is looking at that and gets disappointed in the blockchain tech. We are spending shareholders’ money [on blockchain exploration]. We need solutions that are practical.

Abdrashitov also explained that the Masterchain blockchain was inefficient, making it impossible to use the platform for several purposes at the same time. So for every use case a new network would have to be built.

Further Options Considered

And so, the state-controlled bank said it was backing out gently. While it will continue to participate in the project, its role and expected usage of any end product will be limited and the company intends to seek alternative enterprize platforms, naming the likes of Hyperledger Fabric and Quorum.

Hyperledger Fabric was developed by Linux and IBM for the execution of smart contracts and meets the use cases required by Sberbank for functions such as over-the-counter trading, trade finance and mortgage lending.

Related:

  • No Related Posts