A consortium of major banks has successfully tested blockchain technology
The R3CEV consortium, which already consists of 42 banks, has conducted the first successful tests of blockchain technology as applied to traditional financial transactions. The test involved eleven members of the consortium. As part of the test, its participants made verification transactions. The system was powered by the Microsoft Azure cloud service and used the Ethereum network.
Consortium founder David Rutter described it this way :
The transition from theories and hypotheses to applied use symbolizes the next important step to ensure that this technology changes the procedures by which organizations communicate and trade with each other in the financial markets, as well as provide reports on their activities. These are very exciting events, both for R3CEV, and for our banks, and indeed for the entire international financial industry.
A feature of the blockchain technology, originally developed for the functioning of cryptocurrencies, is that there is no need for intermediaries. No third party is required to control, verify and confirm transactions. All participants in the process have access to the global transaction accounting system.
In the future, this system will automate, speed up and at the same time reduce the cost of money transfers both within the framework of one country and in international transfer systems. This increases the reliability of work and minimizes the possibility of fraud.
For example, according to the calculations of R3, current international transfers, taking up to 4 business days, can be completed in 15 seconds. And eliminating unnecessary steps and the work of third parties will save up to $ 20 billion annually. The consortium promises not to postpone new tests that will bring this beautiful bright future of finance closer.
Blockchain technology has caused great interest after the popularization of cryptocurrencies, the very first and most famous of which is the currency Bitcoin. R3CEV ConsortiumIt was founded in 2014, and since then more than 40 banks have joined it. Among them are, to put it mildly, large players such as Barclays, Credit Suisse, Goldman Sachs, JP Morgan, Royal Bank of Scotland, Bank of America, Commerzbank, Deutsche Bank, Morgan Stanley, National Australia Bank, Royal Bank of Canada, UniCredit , Wells Fargo et al.