The Central Bank of China has developed a blockchain platform that digitizes payment checks from local companies. This is reported by Coindesk.
The project, which took about a year to develop, was created to prevent fraudulent transactions with checks in the Chinese market.
As the deputy head of the People's Bank of China laboratory for studying digital currencies Di Gang said, the new blockchain-platform uses the algorithm of the "practical Byzantine paradigm of fault tolerance" (PBFT) and is able to tokenize checks, while all transactions are controlled by smart contracts.
Once the smart contract rules are set in the blockchain, any participant cannot alter the system easily. Even for code updates, regulators will have full access to the record, which increases regulatory efficiency and reduces the cost by removing a manual cross-checking process for transactions.
Deputy head of the digital currency research lab, People's Bank of China
According to him, the main advantage of the technology lies in the fact that the Central Bank will have full access to all records on the check.