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Koreas Central Bank plans blockchain implementation in settlement system

Thursday 29 December 2016 13:21 CET | News

The Bank of Korea is considering implementing a supernode to help mitigate privacy concerns, should it seek to adopt distributed ledger technology.

Published as part of an overview of the central banks future plans, the report titled Present Status and Key Issues of Distributed Ledger Technology details policy issues which could hinder the growth of distributed ledgers and also estimates the cost-cutting effect of the application of the blockchain technology for the first time in Korea. The report mentions that blockchain implementation could save the bank about KRW 107.7 billion. Furthermore, the report recommends implementing the technology for major settlement services such as the BoK wire+ (Bank of Korea settlement system).

Addressing privacy issues, according to the report, cited by EconoTimes, would require PKI based Key Exchange, Supernode (Central Manager) – who will have access to transaction information along with the trading partner, and Confidential Transactions which will be applicable to distributed systems and maintain anonymity and make deals with parties to access deal information.

In addition, the report also recommended the supernode to be responsible for token issuance and granting participants (or token users) access to the shared ledger. It also calls for a Merkle root-based implementation of a public blockchain capable of conducting 3,000 transactions per second.
 


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Keywords: Korea, central bank, blockchain, settlement system, distributed ledger, supernode, privacy concerns
Categories: DeFi & Crypto & Web3
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