Blockchain-based payment is fast proving to be a new hotbed for innovation and competition.
The latest salvo comes from MUFG. The leading global financial group is tying up with Akamai Technologies to build a new blockchain-based online payment network for current payment processing, pay-per-use, micropayments and other developing IoT-enabled payment transactions.
The hyper-scale payment network tackles the most significant concern about blockchain--speed. According to a press release, the new online payment network can process more than one million transactions per second at latencies of less than two seconds per transaction. The underlying blockchain architecture is expected to be extensible to 10 million transactions per second.
“For years, the financial industry has sought to utilize blockchain to secure and hasten transaction processing and lower associated costs,” Nobuyuki Hirano, President and Group CEO of MUFG said.
“We have high expectations for our partnership with Akamai to provide customers the ability to support significantly greater volumes of high-speed payment transactions without compromising the level of security required for payment networks,” he added.
The new blockchain online payment network is built on Akamai Intelligent Platform and draws on the vendor's distributed systems experience. When launched, the network will reportedly improve scalability, reliability, performance, and security.
“This new blockchain-based online payment system, built upon our cloud platform, will be designed to address the concerns related to scalability, latency, and security that have to date hindered broader use of blockchain," said Dr. Tom Leighton, CEO, and co-founder of Akamai.
The MUFG blockchain-based online payment system will be available in Japan during the first half of 2020.