Japan’s largest bank, Mitsubishi UFJ Financial Group (MUFG), has developed a new blockchain to increase the speed and lower the cost of transactions in partnership with the U.S-based tech company, Akamai, reported Fortune on May 21.
The two companies will work in collaboration to design a blockchain-based system that would be able to handle 1 million transactions per second, which could be verified and confirmed in less than 2 seconds. Akamai will be working on improving the technology and it is expecting to process 10 million transactions per second.
As a matter of comparison, Bitcoin can only handle seven transactions per second that can be confirmed in more than 10 minutes.
The blockchain-based system is built on “Akamai Intelligent Platform”, which is Akamai’s cloud service. Also, their blockchain is “permissioned”, which means that the only ones that can join the network that orders and confirms payments are verified computers.
The president and group CEO of MUFG, Nobuyuki Hirano, mentioned,
“For years, the financial industry has sought to utilize blockchain to secure and hasten transaction processing, and lower associated costs.”
He added that the blockchain technology will “support significantly greater volumes of high-speed payment transactions without compromising the level of security required to combat fraudulent transactions.”
The chief technology officer of Akamai Labs, Andy Champagne expressed that the technology will help “micropayment-type transactions,” and “Internet of Things” style payment where connected devices will operate autonomously.
“We expect to roll forward on the payment network application with Mitsubishi in early 2020,” he added.
Their partnership should help to solve technical obstacles such as security and speed “that have to date hindered broader use of blockchain,” said Akamai’s CEO and co-founder, Tom Leighton.