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Bank of Korea Mulls New Blockchain Oversight Mechanisms

The Bank of Korea has announced it is considering developing a supernode, in a bid to allay potential privacy concerns ahead of a wider rollout of distributed ledger technology.

The supernode would centrally manage and verify transactor identities, protecting sensitive information about parties to transactions over the blockchain infrastructure, one of a number of solutions offered by the bank as it eyes up user cases for adopting the blockchain for a number of core functions.

The revelation comes as the central bank increasingly looks to be preparing to embrace blockchain infrastructure.

Its research paper Present Status and Key Issues of Distributed Ledger Technology set out to examine potential difficulties with using the blockchain, in a bid to iron out technical issues remaining with the technology ahead of a wider adoption.

According to the report, identifying and offering solutions to these issues was essential to satisfy markets and investors, ahead of eventually embracing the efficiency and cost benefits of moving to more decentralized systems via the blockchain.

"In order to utilize distributed ledger technology in financial services, it is necessary to resolve technical issues such as securing trade secrets, controlling authority, maintaining trust and security and securing scalability."

Analysts at Goldman Sachs have suggested the adoption of the blockchain could save the Bank of Korea up to 16 percent of its total cost base, while introducing significant time and cost advantages for traders and other banks.

As the bank looks to address remaining concerns with the technology, it does so with an eye firmly on further exploration of the technology and its benefits for the near future. The report comes during a busy conclusion to the year for blockchain technology, as it continues to move toward a more viable position.

With potential applications across a range of industries and sectors, and strong support from private, public and charitable groups, 2017 looks set to be the biggest year yet for the adoption of blockchain and distributed ledger technology.

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