Dutch National Bank: Blockchain cannot match with Banking

Dutch National Bank stated in its recent report that the present infrastructure of blockchain technology is yet not ready to contest with banking system
11 June 2018   1554

Recently, DeNederlandscheBank (DNB) carried out experiments utilizing the decentralized ledger technology. The research stated that the most substantial shortcomings of the technology are insufficient because of the high energy consumption, combined with the lack of complete certainty about making a payment.

Nevertheless, it pointed out that these disadvantages will be wagered with financial markets being better equipped to protect against outside attacks. Upon the experimentation phase, DNB deployed a project, called Dukaton, and studied 4  prototypes using distributed ledger technology (DLT) since 2015. This experimentation had a dual aim: gathering knowledge relatively to the technology and testing the potential of blockchain for improvements in payment and securities traffic.

The first prototype included a Dukaton constructed on Bitcoin’s protocol, featuring an exclusively-built blockchain. The Dukatons were made decentrally on 5 separate laptops through long-term calculations. Parties that confirmed and verified the transactions gained a reward in the form of monetary benefits.

The second prototype created the Dukatons in a much less energy-consumptive manner. Although, in this instance, the Dukatons were built based on a trusted third party that published them, instead of Bitcoin. This party would receive all the Dukatons, while the parties validating the transactions to be put into blockchain would only get a transaction fee.

The third prototype involved a centrally designed Dukaton, excepting the Bitcoin software but with a self-constructed electronic wallet, that kept the required cryptographic keys for security. In the result, this prototype served as a base for the fourth prototype to analyze the profitability of DLT for financial market infrastructure.

These prototypes show that the blockchain solutions tested currently cannot meet the high demands of financial market infrastructures (FMI). Requirements for FMIs are safety, reliability, efficiency, payment finality (legal security), authorization, resilience, availability, capacity, scalability, costs and sustainability.
Dutch National Bank
Report

Finally, DNB claimed that the blockchain technology is exciting and promising. DNB will keep on investing in the technology to use its full potential.

Lightning Labs to Raise $10M

As reported, the raised funds will be allocated to enforce the team with developers and commercial speciaslists
06 February 2020   317

Lightning Labs attracted $ 10 million investment during the A-series financing round, and also introduced a beta version of its payment service for outlets that work with bitcoin.

If bitcoin is going to reach its potential as a viable global currency, it’s going to need to scale beyond the base layer. Similar to how Visa relieves banks from handling all fiat currency traffic, Lightning relieves the base bitcoin chain from handing all transactions, thus bring more speed and fee efficiency to the network.

 

Brian Murray

Managing Director at Craft Ventures

With the help of the raised funds, the company intends to hire more developers and commercial specialists, so that it will be able to convey the applied solutions to users. In 2018, Lightning Labs unveiled a beta version of its LND scaling solution and received $ 2.5 million investment from several investors, including Twitter CEO Jack Dorsey and Litecoin creator Charlie Lee.

Now a beta version of the new Lightning Loop service has been launched, with the help of which outlets can more effectively manage payment channels and maintain liquidity in them. Several customers have already become interested in this tool, including the developer of the Fold shopping application, which processed approximately 1,600 transactions through the Lightning Network during the holidays in 2019.

We’re growing fast and Lightning Labs’ loop service makes it simple to manage our lightning node’s liquidity, letting our team focus on building out great user experiences that bring lightning to the world.

 

Will Reeves

Fold

According to Lightning Labs, this year the company will be developing tools for working with larger payment channels. We are talking about both individual channels, which individually can hold more than $ 1,500, and multidirectional ones, which break down payments into smaller parts.