Unnamed Ukrainian Bank to Work on Blockchain

News and Analysis

Ukraine may soon present a blockchain-based system for financial entities, which might resemble that developed by R3, a consortium of upwards of 40 major banks.

Developers from Distributed Lab intend to implement this system, unofficially known as ‘financial internet’ in one of Ukraine’s banks in three months’ time.

The ‘financial internet’ will be based on Infra, which is a protocol for sending transactions, reaching agreements as to account balances, and maintenance of decentralised trading. There will be no decentralized cryptocurrency involved – only fiat money will be used.

The company refused to name the bank intending to implement the technology. However, it will become the first bank using blockchain banking systems.

The system in question is said to eliminate the need for miners and validators, and verify transactions by its own means. Regulators may also be involved in verification as necessary. Depending on the kind of transaction and parties involved, various ways of reaching consensus are possible.

Communication protocol, however, is intended to remain open in order to facilitate the establishment of financial relations. The project seeks to accelerate transactions and enhance their transparency using features inherent in blockchain technology. This will also decentralize trading and currency exchange.

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