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.
Chip Maker TSMC Forecasts Weaker Crypto Mining Demand in Q4
Chip-making giant Taiwan Semiconductor Manufacturing Company (TSMC) has predicted weak demand for processors from cryptocurrency miners for the fourth quarter.
TSMC, the primary supplier for crypto
Crypto Exchange Huobi Now Lets Users Swap Between 4 Different Stablecoins
Huobi, the Singapore-based cryptocurrency exchange, has just launched a new solution that enables users to switch between different types of fiat currency-pegged cryptocurrencies, or stablecoins, in e
Bitcoin Price Eyes Triangle Breakout Above $6.4K
Bitcoin (BTC) is again trading in a narrowing price range above $6,400, but the lateral trading may soon give way to a rally, according to technical studies.
The price consolidation comes after Mon
Security firm G4S Has Launched a Crypto Custody Service
U.K.-based security services company G4S now offers a crypto custody service aimed to protect investors' holdings of digital assets.
Announcing the move in a press release on Oct. 16, the firm said
Gates Foundation Partners With Former Ripple CTO's Blockchain Project
The Bill and Melinda Gates Foundation has partnered with blockchain startup Coil as part of its mission to provide payment services for the unbanked.
The news comes via a tweet from Miller Abel, th
Mt Gox's Bitcoin Creditors Have 4 Days to Submit Rehabilitation Claims
Clients of the defunct crypto exchange Mt. Gox must submit claims for trapped funds by Oct. 22.
As previously reported by CoinDesk, the exchange first opened up the claims process in August, follow
Crypto Exchange Coinbase Open-Sources Its Security Scaling Tool
U.S.-based cryptocurrency exchange Coinbase is making a recently developed automated security scaling tool available to the public.
Called Salus, after the Roman the goddess of safety and well-bein
The SEC Is Setting Up a New Division to Talk to ICO Startups
The U.S. Securities and Exchange Commission (SEC) is launching a new division with the goal of making it simpler for fintech startups – including those launching initial coin offerings (ICOs) – to nav