The Central Bank of South Africa wins the prize for its blockchain on Ethereum Payments


Central Banking, a global forum for central banks, awarded the FinTech & RegTech award as the best upside-down accounting initiative to South Africa's Central Bank for its success Project Khokha, which successfully used a blocker platform in Ethereum to process interbank payments and settlements [19659002] The test showed that distributed ledger technology (DLP) can enable the processing of digital rather than analog transactions, offering significant improvements to global transactions. On its Web site, Central Banking demonstrates that the success of the test demonstrates the need for regulators to respond to the concerns of bank security and privacy to improve the overall processing of transactions.

Realized Realistic Testing

The South African Reserve Bank designed and executed the Khokha Project in less than three months to test the competence, resilience, confidentiality, purpose and scalability of a DLT solution for the # 39; processing transactions in realistic conditions on a wholesale payment system. The bank used the JP Morgan Chase Quorum network with tolerance to Byzantine errors in Istanbul and Pedersen's commitments and tests of autonomy.

The participating banks created their nodes and were able to commit, track down and redeem the rand marinated on the distributed register.

The main objective of the project was to correctly process the transactions respecting the Principles for financial market infrastructures. The project also established measurable objectives for performance, transaction times, security and privacy.

One goal was to scale from 70,000 to 200,000 daily transactions, based on real-time gross settlement needs for South African banks. Another was to process one-day trading in two hours while coping with a one-day processing loss.

Test used Benchmark established

The central bank has set a target of 95% of the transactions validated in less than one second, and 99% of the transactions validated in less than two seconds. While the central bank maintained the visibility of all transactions, the participating banks were not able to view each other's transactions.

The network managed the daily volume in less than two hours, providing purposes of regulation and complete transactional privacy. The central bank maintained regulatory control of transactions processed in two seconds through a network of geographically distributed nodes.

Central Banking noted that regulators must work together to protect the financial system so as not to stifle innovation.

Close-up image of Shutterstock.

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