European Central Bank Maintains Blockchain Potential
March 29, 2018
The European Central Bank (ECB) has spoken again in support of huge blockchain’s potential after collaboration with the Bank of Japan (BoJ ) finished.
In the second report the ECB has prepared in the course of it’s partnership with the BoJ, it has examined the functions blockchain may have in various deals with securities.
With blockchain keeping on technically developing, the ECB considers adopting new approach to securities calculation called “delivery versus payment” (DvP). Here operating systems “link the transfer of two assets in such a way as to ensure that the transfer of one asset occurs if and only if the transfer of the other asset also occurs”.
“DvP could be conceptually and technically designed in a DLT environment with cash and securities on the same ledger (single-ledger DvP) or on separate ones (cross-ledger DvP)”, as the report says.
The cross-ledger operation refers to the concept broadly-known as “cross-chain atomic swaps” which is trasnfering information between two independent blockchains. This is the main goal for Lightning Network for cryptocurrencies like Bitcoin and Litecoin.