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Japanese Bankers and bitFlyer Bitcoin Exchange Release Blockchain Banking Report

Japanese Bankers and bitFlyer Bitcoin Exchange Release Blockchain Banking Report

Japanese Bankers and bitFlyer Bitcoin Exchange Release Blockchain Banking Report

Every banker is looking for an edge over another banker; something to separate themselves from the pack and say to the consumer “This is why you should bank with me.” All banks have debit cards, checking accounts and alike. Virtually none have the latest blockchain technology in-house, but in Japan, this may change as early as next year. A nine-month multi-bank test of Bitcoin’s blockchain technology versus the traditional wire transfer system has been completed and we have the results.

According to the report, seen in its entirety here, Mizuho Financial Group, Inc., Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Financial Group, Inc., the Deloitte Tohmatsu accounting group and the Bitcoin exchange bitFlyer have been running Blockchain tests for virtually all of 2016, with the final tests concluding in September.

The goal was to see if Bitcoin’s Blockchain technology could hold up to the rigors and speed requirements of the current currency transfer systems. You could say that these tests were successful.

“Blockchain's low processing speed was seen as a major drawback of the technology,” said the Asian Nikkei Times. “But researchers were able to conduct 1,500 transactions per second using Blockchain, on par with the nearly 1,400 transactions the current interbank wire system is capable of handling at peak times.”

The banks again were not mentioned, but they are known to be the three largest banking groups in Japan. New regulations in Japan, which began this spring, have brought the economic value of the Bitcoin digital currency on par with the Japanese Yen, and these regulations have given Japanese corporations a legal field to work in as they seek to capitalize on the improvements this new technology can provide. The report states that the technology performed as advertised.

“In terms of technology, considering the level required for actual operations of interbank payment services, though the range that could be verified in this practical experiment is limited, fatal defects were not identified and it is considered that blockchain technology can be applied to the area.”

“In the assessment of the experiment environment constructed this time, it was proven that the performance throughput, in particular, achieved 1,500 transactions per second and that the level sufficient for actual operation is expected.”

Cost benefits were also realized in several areas:

“As a result, several points of cost reduction were confirmed on the central system side, and it is confirmed that system cost could be reduced by utilizing blockchain technology.”

The successful nature of the tests has meant that greater implementation of the Blockchain technology in the banking sector is expected in 2017. Startups in the region that build Blockchains may see some very large contracts from the banking industry in the months and years to come.

Author : Evander Smart

Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

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