African Bank Uses Ethereum-based Blockchain for Payments

SARB uses Ethereum-based blockchain for payments

The Central Bank of South Africa has published an excellent result of Project Khokha. The project was a demonstration in order to replicate the interbank payments and settlements on an ethereum-based enterprise blockchain, based on Ethereum.

The South African Reserve Bank (SARB) has published its report on a real test of the wholesale payment system based on the blockchain and has been running for almost three months since February.

The central bank showed that the practical platform was deployed in a “realistic test environment” in which the blockchain was able to process the entire typical daily volume of South Africa’s Real Time Gross Settlement System (SAMOS), about 70,000 transactions, in about 75 minutes. On average, transactions were processed for 2 seconds with complete confidentiality and 100% settlement rate.

SARB Project Khokha Performance test #3

A separate test iteration simulating a failed SARB node in which banks can still make transactions with each other without central bank supervision has achieved similar positive results with 70,000 transactions that took less than 2 hours.

The pilot also included other banks, such as Discovery Bank, Absa, Capitec, FirstRand, Nedbank, Investec and Standard Bank.

Despite the revolutionary success of the PoC trial, the central bank insists that before the start of a full-fledged launch of the blockchain system into production, many issues must be solved:

“This report notes that there are many issues to consider before the decision to take a DLT-basedsystem into production can be taken. Some of these issues relate to the practicalities of implementation, but also to legal and regulatory factors and to the broader economic impact.”

In addition, the bank insisted that the purpose of the locking system is not intended to replace SAMOS at this stage, but to better understand how the interbank settlement system will integrate with the Blockchain Quorom platform.

As previously reported, the Khokha project was announced in February by the central bank in partnership with Ethereum coder collective ConsenSys, which uses Quorum, a blockchain platform developed by JPMorgan and EthLab, the Ethereum startup.