The prototype is based on distributed ledger or blockchain technology for the Russian financial market. Participating financial institutions include Sberbank, Alfa Bank and Tinkoff Bank (which confirmed usage of Ethereum’s technology) and Russian payments operator, Qiwi Group.
The central bank explained that the ‘Masterchain’ is ‘a networking tool’ for participating members using blockchain technology. The platform enables for “prompt confirmation of data actuality” to a transacting customer. The innovation also enables instant communication possible between counterparties among the platform, while assuring confidence in financial transactions.
The Russian central bank might also develop its blockchain solution based on Ethereum that could be used across the financial industry, beyond banking to help both the regulator, and the market participants understand outcomes, estimate capacities, mitigate the risks of using different technologies, and decide on follow-up actions.
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