Blockchain Settlement Trials Successful – German Central Bank

The trial of blockchain based settlement technology research or Blockbaster which commenced in 2016 has been successfully completed. It was started by the central bank of Germany, Deutsche Bundesbank, and securities marketplace organizer Deutsche Boerse (DB).

The joint research conducted, achieved its goal of testing on blockchain, the full lifecycle of bond issuance, settlement, corporate actions, and redemption, as well as cash transfer including the provisioning of digital coins, transfer between market participants, and settlement of cash payments.

Using a Hyperledger Fabric framework and Digital Asset, which is a distributed ledger (DLT) solution for the financial sector, the transaction volume and speed of a production system were tested. Basic technologies behind the experiment were constantly improved during the trial, which rendered some test results outdated.

There were distinct advantages and disadvantages of blockchain technology. The high latency for some technology stacks and high CPU-usage were mentioned among weaknesses, while higher resiliency and lower cost of reconciliation due to the joint database were considered to be benefits.

Burkhard Balz, executive board member of Germany’s central bank also stated that there are “rapid developments to continue” and adding that he sees “potential in using it for high-volume applications”:

“The approach of a permissioned architecture, which takes into account the requirements of the financial sector from the outset, has proven to be right.”

Link to the full news article here.

This is definitely a step forward to the future of a Blockchain-powered world.


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