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Japan’s largest bank plans 2019 blockchain service with two-second transaction speeds

Mitsubishi UFJ Financial Group (MUFG), the world’s fifth-largest bank by assets and largest in Japan, has announced the development of a new blockchain platform that will process a million transaction a second.

Teaming up with Akamai Technologies, MUFG plans to launch the new service in 2019 and will leverage the former’s cloud delivery platform to ensure a smooth rollout. According to both, under normal conditions, the Akamai solution was able to process transactions in less than 2 seconds.

On top of that, the system was able to chew through one million transactions a second, and MUFG reckons that there could be scope for that number to increase to 10 million.

Related: MUFG plans to replace core banking systems with AI by 2024

The new servicewill have interface that can be used as a communications network, and will include functions for the transfer and management of value through the blockchain.

“Blockchain has been attracting attention in the past few years due to its potential to strengthen protection against falsification of transactions and drastically lower costs, and many financial institutions around the world have partnered with IT firms to test various proof of concept designs,” MUFG wrote in a release [PDF].

“Until now, initiatives to increase the speed of blockchain had to sacrifice its fundamental structure or features. MUFG and Akamai’s blockchain-based platform offers higher capacity and increased transaction speed while preserving the intrinsic merits of blockchain.”

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