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Bank of England Progressing ahead with it’s cryptocurrency Development

Apr 20, 2018 Posted /  883 Views

Bank of England Progressing ahead with it’s cryptocurrency Development

The bank of England recently released its results of a research the bank has been carrying out on blockchain technology in a working partnership with the blockchain startup company Chain. The bank produced a proof-of-concept paper this week for a digital ledger network that is designed to handle data while maintaining the highest possible level of privacy.


Bank of England Pressing Ahead with their Cryptocurrency Research


The bank of England is progressing well with its research in blockchain technologically after recently releasing the research findings they have obtained so far. The bank which boasts of being a research-driven organization is said to have identified the potential blockchain offers way back during the first days of the technology.


The bank acknowledges the innovation of cryptocurrency that combines new payments systems with new currencies that are not issued by a central bank such as bitcoin, Ethereum, Litecoin, and others. On bank also acknowledges that cryptocurrency still poses some risks to the monetary and financial stability of the UK.


Regarding distributed ledger technology and blockchain, the bank says distributed ledger technologies can be adapted for other uses apart of cryptocurrency. The bank believes in the wide variety of potential benefits associated with the use of blockchain although acknowledges the many challenges would need to be overcome before the full potential of the technology can be felt.


Proof-Of-Concept Released


The bank has developed a Fintech Hub that monitors the developments in the distributed ledger technology as it points out relevant use cases that can be adapted for use at the bank. The bank also said they have a central bank issued digital currency which is considered as the bank's own version of cryptocurrency.


The proof of concept paper that the bank recently released is based on academic findings rather than practical. The aim of the research was to explore some of the key questions that could arise from ensuring privacy on a distributed ledger system. In the research testnet, a digital asset with fake real world value was transferred between some participants which included a central authority and a regulator. In the research, the central authority added the asset and the invited participants and the regulators were able to view all transactions in the network.


The findings showed that would be attackers would need the private keys of all the users of the system in order to decrypt all the data needed to compromise the security of the transaction system. Although the occurrence of the event is very unlikely with the current advancing technologies, it could be possible.

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Tags: Bank of England cryptocurrency Development blockchain technology blockchain

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