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   1017

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

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

tZERO to Launch Bitcoin Trading App

Application itself is being developed by Bitsy; it may also begin to support Ethereum in the future
22 March 2019   141

The security tokens platform tZERO announced plans to launch a mobile application for buying and selling bitcoin. In the future, the application may also begin to support Ethereum,  CoinDesk reports.

According to Saum Noursalehi, CEO of tZERO, applications for iOS and Android devices should be launched in June. Bitsy is developing it, a cryptocurrency start-up that is part of the portfolio of the Overstock venture division of Medici Ventures.

That’s part of the reason we acquired Bitsy — to accelerate time to market for our mobile app. They have an app for trading crypto, primarily bitcoin, in a beta-phase, they built a wallet and key recovery mechanism, and this will be the foundation of the mobile app for tZERO. They are also working on some cool stuff like biometric login. 

Saum Noursalehi

CEO, tZero

According to him, the application will allow you to store cryptocurrency without the need to trust third parties and it will be connected to the network of exchanges through the API. The implementation of this plan will occur through partner tZERO, the institutional trading platform SFox.

In the future, the head of tZERO added, the platform also intends to create its own cryptocurrency vault to meet the demand from users.

The public beta testing of Bitsy wallet started in November 2018. With his help, the Overstock retailer plans to launch Bitcoin sales on its website.