Netherlands Bank’s Mission to integrate Blockchain into the Banking World

September 4, 2019 12:36 AM UTC

The DNB, DeNederlandscheBank, announced they are committed to create a stable financial system, which means, stable prices as well as solid financial institutions. DNB has been conducting a blockchain experiment and their conclusion is that the blockchain technology is not yet ready for the high requirements of a financial stable market infrastructure.

According to DNB website, the biggest flaws about the blockchain technology are:

 insufficient capacity, inefficiency due to high energy consumption and lack of complete certainty about having paid a payment

This blockchain experiment has been conducted for three years. DNB created a few prototypes to test different consensus algorithms, payment systems and other features. These prototypes seem to show that the blockchain solution cannot meet the requirements of financial markets. According to the FMI, the requirements are:

safety, reliability, efficiency, finality of the payment (legal certainty), authorization, resilience, availability, capacity, scalability, costs and sustainability

DNB seems to find the blockchain technology really interesting nonetheless and hopes the future will bring new algorithms and technology capable of meeting all the requirements.

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