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Spring Meetings - R3 - World Bank - OECD - Bank of Canada

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Posted (edited)

some new stuff from the Bank of Canada working with the Bank of England and Bank of Singapore - seems related to this thread but a bit above my head - so I am posting it here






Edited by Julian_Williams

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On 5/2/2019 at 5:16 AM, Julian_Williams said:

seems related to this thread but a bit above my head

I am not going to lie. The first time I saw your posted I just passed right over the second article, but I stumbled upon the article again which lead me back to this post. I think we are sleeping on the Bank of Canada right now. They are making extreme progress as indicated from the second article. 

"The two central banks (Bank of Canada and Monetary Authority of Singapore) connected their respective experimental domestic payment networks, namely Project Jasper and Project Ubin, which are built on two different distributed ledger technology (DLT) platforms in a bid to make the cross-border payments process cheaper, faster and safer."

"The Jasper-Ubin project was carried out in partnership with Accenture (Investor of Ripple) and J.P. Morgan, who supported the development of the Canadian network on Corda, and the Singapore network on Quorum, respectively."

"The project teams used a technique called Hashed Time-Locked Contracts (HTLC) to connect the two networks and allow Payment versus Payment (PvP) settlement without the need for a trusted third party to act as an intermediary."

Before this, I have not heard of Hashed Time-Locked Contracts, but I looked more into it. According to this Medium article (https://medium.com/@jkendzicky16/ripple-xrp-analysis-cc4f440d0604), "xCurrent is conducted through Interledger (ILP), a completely independent protocol layer that uses hash time-lock contracts to facilitate trustless payments over ledger systems." AKA smart contracts. 

Moreover, its far more intriguing the white paper Payments Canada, Bank of Canada, and R3 made on its experimentation with DLT for Domestic Interbank Payments Settlement from 2017. I'll pull a few exerts that I found interesting but the white paper has bounds on information.  

"many Canadian financial institutions are members of the R3 consortium and have benefited from R3’s global perspective and focus on DLT initiatives."

"DLT is increasingly being referenced for cross-border payments where innovators such as Ripple Labs are partnering with global financial institutions to exploit gaps in this service area"

"The analysis to date suggests that DLT platforms that employ a proof-of-work consensus protocol, as was built in Phase 1, do not deliver the necessary settlement finality and low operational risk required of core settlement systems. Phase 2 built a distributed ledger platform that employed an alternative consensus model using a “notary node” and could deliver improvements in settlement finality, scalability and privacy, but does not adequately address operational risk requirements. Further evaluation of DLT is still required as solution providers enhance their offerings and introduce enhancements to satisfy the PFMIs that must be met by any wholesale interbank payments settlement system."


This is ONLY project jasper. I have not even touched on project Ubin yet!!!!

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