Biggest Bank in Japan Planning to Switch to Blockchain Payments by 2020

The biggest bank in Japan was reported to have co-developed a new blockchain to increase the speed while lowering the cost of payments.

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Mitsubishi UFJ Financial Group (MUFG), in partnership with US tech company Akamai, has designed a blockchain to handle at least a million transactions per second with a max confirmation time of 2 seconds.  The companies said that these figures can be raised to 10 million transactions per second as they improve upon the tech.

This is a huge step-up from bitcoin which processes only a mere 7 transactions per second with confirmation times oftentimes exceeding 10 minutes.

One of the main differences of the two blockchains is that the MUFG and Akamai blockchain is permissioned—only verified computers are allowed to join in on the network that orders and confirms payments.

Commenting on the blockchain bandwagon banks that banks are slowly getting on, President and Group CEO of MUFG Nobuyuki Hirano said:

“For years, the financial industry has sought to utilize blockchain to secure and hasten transaction processing and lower associated costs.”

CTO of Akamai Labs Andy Champagne said that they are expecting the payment network application to “roll forward” in early 2020.

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