Japan’s Largest Bank MUFG Plans to Use Blockchain Payment by 2020: 1 Million Transactions Per Second
Japan’s largest bank MUFG (Mitsubishi UFJ Financial Group) (PDF) disclosed details of cooperation with Akamai (Akamai, the global CDN/cloud computing company). MUFG announced the launch of a “very large” blockchain support system and plans to combine payment technology with Akamai cloud computing technology to develop a blockchain trading system. The system can handle 1 million transactions per second and the transaction costs are low. MUFG expects this technology to continue to upgrade with a target of 10 million transactions per second.
The MUFG blockchain trading system is expected to be operational in 2020.
In terms of transaction confirmation time, this blockchain system can confirm the completion of a transaction within 2 seconds.
Compared to other online trading system speeds, Bitcoin currently trades at a peak rate of 7 times per second, Ethereum’s peak transaction rate is 20 times per second, and the world’s largest payment network Visa transaction rate is officially claimed at 24,000 times per second. EOS advertises peak transaction speeds. It can reach 1 million times per second.
MUFG stated that the future blockchain trading system will include micropayment, pay-per-view, on-demand payment transactions and other forms of IoT payments.
“We will provide an open platform to support multiple payment methods.” MUFG announced.
Since private companies or bank blockchains all use private chains, the ability to fully “open up” the network requires further investigation.
MUFG did not introduce the details of the blockchain trading system. MUFG only mentioned that all the nodes of this blockchain trading system will be placed on the Akamai intelligent platform to realize ultra-high speed transactions.
Akamai co-founder and CEO Tom Leighton added: “This blockchain trading system is built on our cloud platform and is dedicated to solving issues related to payment scalability, latency, and security.”
MUFG is one of the world’s top five banks and has assets in excess of trillions of dollars. The bank has always been very optimistic about cryptocurrencies and blockchain. As early as November 2016, MUFG developed a payment pilot project using blockchain technology. The project beat Japan’s bank wire transfer system (1400 transactions per second) with 1,500 transactions per second.
In addition, MUFG has also formed a blockchain R&D team and is expected to release a cryptocurrency called “MUFG” in 2019, which is planned to be used by banks for large-scale trials.
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