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Russian banks begin practical implementation of blockchain technology

“AK Bars”, Sberbank and “Otkritie” have implemented a pilot project for the rapid and safe exchange of bank KYC questionnaires with the application of blockchain technology. RBC reports that the prototype is based on the "Masterchain" platform.

According to the author of the project, it is an initial step on the road to use API banking that can help improve the operational efficiency of hardware and software infrastructure.

Traditionally, banks exchange KYC questionnaires on paper with a signature, a seal and slowness. Blockchain technology replaces the manual process with an electronic analogy. The software that is being developed provides a single window for changing the KYC questionnaire to all its counterparts and ensures the identity of financial institute in electronic environment, the reliability of disseminated data and the ability to track the change of KYC questionnaires over time.

ʺThe development of interbank KYC questionnaires improves interaction between financial institutions, makes it cheaper and transparent. The problem seems to be boring, but believe me, it opens the door to further cheapening of interbank interaction,ʺ the project manager of the distributed register “AK Bars Digital Technologies” Sergey Ukustov said.

The encrypted questionnaire is stored in a distributed immutable store. A link to a questionnaire is stored in a blockchain transaction. Distribution of keys to decrypt the questionnaire is carried out with the help of additional cryptographic techniques. They guarantee that only a counteragent can read the questionnaire. However, the contractor is not available for information about how many other contractors are in the bank. The structure of the interaction between banks remains a secret.

ʺThe pilot project is one of the first steps towards a practical organization within a banking environment that will lead to an entirely new form of interaction between credit organizations in and outside our country,ʺ the Head of the Retail and Small Business Development Department of “Otkritie” Andrey Sabynin said.

Previously, The Head of Sberbank Herman Gref stated that blockchain technology would radically change the entire economy, as well as provided examples of other successful projects of the institute he led.

Source: forklog.com

  • March 23, 2017 11:53 AM MSK
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