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Central Bank of South Africa sees Ethereum blockchain only as a backup

8 banks in South Africa signed a contract for the verification of bank payments, using Quorum.

01.Jul.18 9:15 PM
By Jason Brideslow


Central Bank of South Africa sees Ethereum blockchain only as a backup
The Khokha project is the cooperation of eight South African banks, including SARB, Absa, Capitec, Discovery, Investec, FirstRand, Nedbank and Standard Bank.

70,000 transactions in 2 hours

The project uses the Quorum platform. It aims to replicate the current payment platform of the South African Republic - the South African multi-gross settlement system (SAMOS), using distributed accounting technology of the blockchain system.

After 14-week realistic testing of the clearing system and settlements between banks, the project was recognized as successful. He copied transactions instead of using actual ones, but he proved that 70,000 daily transactions processed by SAMOS can be completed using blockchain technology within two hours.

During the test, each involved bank had a node or participating computer in the Project Khokha Ethereum network. Also used are public cloud servers from Microsoft Azure and Amazon web services. To ensure the efficiency of the calculations needed to verify transactions, additional server features were added.

The network was tested with a SARB node that checks each transaction between banks and each bank in the network that checks all transactions. In accordance with the SARB, the process and verification are provided by Quorum, a combination of "scalability, sustainability, confidentiality, and completeness."

In the report published after the tests, the project is described as an initiative of "cooperation in the field of innovation and, therefore, both processes, as well as project results, contribute to the achievement of SARB objectives. It was decided to evaluate the option of using DLT in wholesale payments and interbank settlement and, therefore, to base and expand the work done in other parts of the world. "

Backup, but not the replacement

SARB came to the conclusion that it is necessary to conduct additional research to determine whether the interworking technology (DLT) or interlocking technology for interbank settlements is suitable. The Central Bank states that the main considerations will be how support structures are integrated, as well as their legal and regulatory factors.

According to reports, the deputy director of SARB, François E. Gröp, expects that the system based on the blockhouses will support the existing settlement system as a reserve fourth level, if it is implemented, but will not be replaced.

The country is gradually going to meet crypto-technologies. So, for example, last year supermarkets allowed buyers to pay for purchases by cryptocurrency.

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