South Africa’s central bank won for its successful project Khokha used on the Ethereum blockchain platform for interbank payments and settlements. A global central banking forum, Central Banking, awarded FinTech & RegTech Award for Best Distributed Ledger Initiative to the bank.
The website of Central Bank noted that the test successfully demonstrated that to address banks’ security and privacy concerns, regulators are required. It is needed to improve the global transaction processing, CCN reported.
The Reserve Bank of South Africa in the period of three months designed and executed Project Khokha. It was done to test the proficiency, confidentiality, resilience, finality and scalability of a distributed ledger technology (DLT) solution and for transaction processes under realistic conditions on a wholesale payment system.
Reportedly, JP Morgan Chase’s Quorum was used by the bank to design the solution. Each of the participating banks on the network created their own node. The goal of Project Khoka was to scale up the 70,000 transactions per day to 200,000. All they wanted was to abide by the Principles for Financial Market Infrastructures and process the transactions successfully. The project also established the transaction time, measurable goals for performance, security and privacy.
The bank reached a goal of 95% of transactions in less than one second and 99% of transactions validated in less than two seconds. The central bank could see all transactions but the participating banks couldn’t view each other’s transactions. It also managed the daily volume in less than two hours, provided settlement finality as well as complete transactional privacy. The bank also maintained regulatory oversight of transactions that are processed in less than two seconds.
Image via Shutterstock
Join our Telegram group