Mitsubishi UFJ Financial Group, the biggest bank in Japan is reportedly planning to leverage decentralized ledger technology so as to facilitate payments in the future.
The Japanese bank has reportedly created a blockchain system through which it plans to improve its services. Mitsubishi UFJ wants to use the new decentralized ledger to bring down the cost of payments while also increasing the speed at which it renders its services. The bank has been working together with a U.S-based tech firm called Akamai to create the decentralized ledger.
The goal of the two partners was to create a blockchain system that will have a latency of less than two seconds and also handle 1 million transactions per second. They also revealed that they plan on improving the system over time so that it can handle up to 10 million transactions per second.
Mitsubishi UFJ will also adopt a “permissioned” approach which means that only computers that are verified will be allowed to join the blockchain network. This approach is different from that of Bitcoin (BTC) and other cryptocurrencies which freely allow computers into the network, thus allowing anyone to mine the cryptocurrency.
Additionally, the new decentralized ledger has been built on the Akamai Intelligent Platform which is the cloud service offered by Akamai. Mitsubishi UFJ CEO Nobuyuki Hirano had this to say about the blockchain pursuit: ?For years, the financial industry has sought to utilize blockchain to secure and hasten transaction processing, and lower associated costs,? The Japanese bank is to switch completely to blockchain technology by 2020.
Blockchain technology has emerged as one of the most promising technologies because it is highly secure and also fast. The banking industry is expected to be one of the industries that will benefit greatly from this technology and so far many banks have been researching the technology.
Akamai Labs? Chief technology officer, Andy Champagne stated that Mitsubishi UFJ?s blockchain has been designed to make traditional payments online although he expects it to pave the way to payments similar to micro-transactions. The new blockchain will be tested in the next few months and if all goes well, the payment system will be fully operational in the next two years.
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