MUFG and Akamai plan new blockchain payments service
The Japanese bank says the platform will offer a capacity to process a million transactions per second and the ability to finalise transactions in less than two seconds. It will be compatible with internet of things (IoT) and other unnamed new technologies.
MUFG says it has engaged in numerous research projects with Akamai, and the platform is a result of that work.
The bank says there is also “potential to further develop this processing ability, permitting the handling of ten million transactions per second”.
According to MUFG, blockchain’s transaction speed and processing capacity are determined by the speed of consensus decision-making between the nodes that make up the blockchain.
The “two important factors” behind this are the speed of the network between the nodes, and the time required for new blocks within a node to be created and validated.
Its new service enables higher transaction speed and processing capacity via a new system structure.
High-speed communication between nodes is achieved by positioning all nodes responsible for consensus decision-making on Akamai’s cloud platform.
The latter is composed of server groups located at more than 3,800 points across 135 countries.
The bank says it has developed a “unique design permitting high-speed and high-capacity creation and verification of new blocks within nodes”.
MUFG says: “Until now, initiatives to increase the speed of blockchain had to sacrifice its fundamental structure or features. MUFG and Akamai’s blockchain-based platform offers higher capacity and increased transaction speed while preserving the intrinsic merits of blockchain.”
The new payment network will be equipped with an interface that can be used as a communications network, and include options to promote pay-per-use, micropayments, and other new IoT payment methods.
They plan to offer the new network from fiscal year 2019.
Nets and coins
MUFG has shown interest in blockchain and cryptocurrencies before.
Last week, Mitsubishi Corporation, MUFG, Bank of Ayudhya (Krungsri), a Thailand-based subsidiary of MUFG, and Standard Chartered started a pilot test for moving real funds over RippleNet.
In mid-January, MUFG also announced it would offer its own proprietary cryptocurrency.
Called MUFG Coin, it will be valued at approximately one Japanese yen, though the value will be left unfixed. The new cryptocurrency system will require users to create a digital wallet to take advantage of the MUFG Coin.