The platform can process a million transactions per second.
Japan’s Mitsubishi UFJ Financial Group (MUFG) has tied up with US cloud software firm Akamai to develop a blockchain service with the capacity to process a million transactions per second and finalise transactions in less than two seconds.
“MUFG and Akamai, using Akamai’s globally deployed high-speed and high-security platform, will utilize this new blockchain’s high-speed processing and secure value transfer abilities to promote pay-per-use, micropayments, and other new IoT generation payment methods,” the bank said in a statement.
The blockchain will be built on Akamai’s cloud service, Akamai Intelligent Platform. The bank targets the global payment network service to be available by 2019 or early 2020.
Japanese banks have been turning to digital methods to cut costs as they are faced with dwindling loan demand brought about by a rapidly shrinking population. MUFG is also planning to cut branches by 20% over a six year period to be replaced by self-service branches to optimise efficiency and bring operating costs down.
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