Blockchain technology is not a valuable addition to this payment method at the Netherlands — not yet, according to the nation's central bank.
In a blog article published Thursday, De Nederlandsche Bank (DNB) arrived at the conclusion that spread ledger technologies (DLT) isn't acceptable because of its present financial payment infrastructure as a result of the insufficient capability to scale to large volumes of transactions and other troubles.
The DNB provided the opinion depending on the outcomes of a project named Dukaton, which ran a set of experiments which has analyzed four DLT prototypes within the previous 3 decades.
Dukaton set out to conduct research in an attempt to understand just how much worth the nascent technology brings into the nation's existing payment method. Basing its very first prototype on the source code of this bitcoin blockchain, the group employed different consensus calculations and validation mechanisms in subsequent phases.
After the evaluations, the central bank admits that blockchain may increase the durability of fiscal infrastructure against outside attacks, but this advantage comes at the cost of"scalability, efficiency, and capacity," it states.
The bank wrote in the post:
"The current payment systems are very efficient, can handle large volumes and provide the legal certainty of payment. The blockchain solutions tested show that they are not sufficiently efficient, with regard to costs and energy consumption, and they can not handle large numbers of transactions."
Nevertheless, the DNB doesn't eliminate the chance that, since the blockchain industry goes forward, a much better-equipped algorithm would have the ability to meet all of the technical thresholds needed by the Dutch monetary system.
Also, the bank said they will continue investing in further application investment and doing various experiments with Blockchain Technology.
In similar work, South Africa's central bank declared positive consequences because of the trial of its own blockchain-based platform for interbank settlement and clearance.
This stage was built in addition to Quorum, the venture blockchain system created by investment bank JPMorgan