The central bank of Netherlands, De Nederlandsche Bank (DNB), has recently stated and acknowledged that Cryptos such as Bitcoin, Ethereum, a genuine form of currency. Since DNB knows that crypto is not a feasible asset for trading and cannot be considered as a real currency. It gives an efficiency and capacity for trading.
DNB being robust and reliable financial institutions have tested four distributed ledger technology prototypes for three years project, named Dukaton.
The first example was based on bitcoin software. The platform was decentralized on five laptops. A second example involved creating Dukatons which use a less energy consuming method. In a third example, a central Dukaton was replicated with a self-built wallet without bitcoin software. These examples have kept cryptographic solutions for security.
Many configurations were tested and different algorithms were used to accept transactions along with network nodes.
Finally, it was concluded that all the examples did not give any solutions to meet financial market organization needs, including efficiency, safety, reliability authorization, availability, resilience, payment finality, scalability, cost, capacity, and sustainability. It even showed that Algorithms could improve cyber resilience, but such algorithms might fail to meet other requirements.
Future Improvements Possible
Banks are showing a growing interest in the blockchain protocol. The payment protocol would let banks to offer their users the ability to transfer any amount of money in any currency to other institutions that use the protocol, without the need for mediators. That would lead to cost savings for banks.
As per the news published in Coin Idol, central banks in many countries have been experimenting with the blockchain technology. The Bank of Japan and the European Central Bank recently released a report claiming that DLT can make fresh securities settlement tools and blockchain technology will kick it into their future.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]