Bank of Korea image via Shutterstock
Notably, in a section titled "Application Plan", the report's authors include several "solutions" to four key problems recommended by the Bank of Korea, headquartered in Seoul, South Korea.
sSpecifically, the application plan advocates for a "supernode" or central manager that oversees privacy controls by helping protect information about the trading partners recorded on the blockchain.
Earlier this month, 27 financial firms formed the Korean Blockchain Consortium, wrapping up a year in which the nation hosted a debate on the future of bitcoin regulation and saw the creation of a blockchain-powered private market by The Korean Exchange.
The Bank of Korea proposes that the supernode would also be responsible for issuing tokens and granting participants (or "token users") access to the shared ledger, and calls for a Merkle root-based implementation of a public blockchain capable of conducting 3,000 transactions per second.
From the report:
"In order to utilize distributed ledger technology in financial services, it is necessary to resolve technical issues such as securing trade secrets, controlling authority, maintaining trust and security and securing scalability."
The new Bank of Korea report can be read below:
The Bank of Korea is considering the creation of a 'supernode' to help mitigate privacy concerns should it seek to adopt distributed ledger technology.
If implemented, the report also concludes that a blockchain implementation could save the bank 16% of its total costs, or about ₩107.7bn, a figured based on previous research by Goldman Sachs.
Bank of Korea Joint Research Paper by CoinDesk on Scribd
The publication is also notable as it signals another strong sign of support for the emerging technology in Asia.
Data for the report was collected from April 2016 to October 2016.
Published as part of an overview of the central bank's future plans, the report titled "Present Status and Key Issues of Distributed Ledger Technology" further details policy issues that it believes could hinder the growth of distributed ledgers.
The joint research report was created with the assistance of blockchain firm Coinplug, academics and financial technology “experts” according to the press release.
Correction: An earlier version of the Bank of Korea report referred to Shinhan Bank in an instance that should have cited Bank of Korea. This was based on an incorrect translation provided, and the article has been updated and a new version of the report has been uploaded below to reflect the new information.
GDAX Exchange to Reimburse Traders After Ether Flash Crash
GDAX, the digital asset exchange operated by Coinbase, is moving to issue refunds after a stunning flash crash last week stoked anger amongst affected traders.
Ether prices dramatically plunged to
Bitcoin Shows What Banking Should Be: American Banker
American Banker, a daily trade newspaper that has been covering the financial sector since 1836, recently featured an analytical piece by its editor-in-chief Marc Hochstein entitled “How I missed the
Sharing Economy: Why Blockchain Might Be Next Big Thing for Office Rental
The shared workspace model is poised to transform the world of work, catering to current and future trends by creating flexible and adaptive office ecosystems. According to Jones Lang LaSalle, shared
Portugal Wants to Tax Bitcoin Users, despite Lack of Regulations
Just like in the rest of the world, the media in Portugal have been all over bitcoin because of the cryptocurrency’s growing popularity… and value. Back in April, Portuguese newspaper Jornal de Negóci
Cryptocurrency Market: Is There a Price Drop around the Corner?
The cryptocurrency price rally may soon hit a temporary hurdle, leading to a slight fall, before picking up the pace again. The forecast was made by Fred Wilson, a cryptocurrency investor, and
Proof-of-Life: Vitalik Buterin Uses Ethereum to Disprove Death Hoax
Vitalik Buterin, the creator of ethereum, used the technology in an unusual way this weekend, turning to the blockchain network itself to disprove his own death.
The hoax originated on the 4chan in
Major Chinese Bitcoin Exchange Lists Ethereum Classic Ahead of Ethereum
BTCC, the second largest Bitcoin exchange in China and the world, has announced the integration of Ethereum Classic on its newly released digital cryptocurrency exchange BTCC DAX. High-profile
Monday Massacre: Bitcoin, Ethereum Lead the Way as Cryptocurrencies Retreat into the Red
Cryptocurrency traders woke up to a sea of red this morning, as 92 of the top 100 cryptocurrencies by market cap experienced a marked price decline. The bitcoin price led the retreat, falling over 6%