Japan's SBI Sumishin Bank partners with Mijin and Dragonfly to apply blockchain technology to accounting systems

Japan’s SBI Sumishin Bank has revealed a three-month experiment it conducted in partnership with Dragonfly Financial Technology and Japanese permissioned blockchain solutions provider Mijin to demonstrate the use of blockchain technology in the accounting systems of financial institutions.

According to a translated press release on Mijin’s blog, the experiment was conducted on a blockchain system provided by Mijin, a subsidiary of Tech Bureau Corp. It simulated an operating environment with 2.5 million bank users and was able to conduct 90,000 transactions per hour.

The press release stated:

"Six nodes were set up on AWS, and fault tolerance and availability were tested during the experiment, and it was confirmed that everything was working properly."

Many financial institutions such as JPMorgan Chase and Goldman Sachs are committed to applying blockchain technology to securities clearing and settlement. This is the first public project to apply blockchain technology in the consumer banking field.

Experiments currently being conducted by other banks and financial firms have only demonstrated the potential of blockchain in controlled environments, rarely involving real-world transaction volumes. However, SBI’s trial is the first to be conducted using data parameters that resemble real-world scenarios.

Mijin’s blog post states:

“The demonstration experiment conducted by SBI Sumishin Bank can serve as a cutting-edge project ahead of all other blockchain applications.”

According to Lon Wong , CEO of Singapore-based Dragonfly Financial Technology, Mijin’s blockchain solution holds great promise for streamlining consumer banking infrastructure systems. He said:

“Mijin/NEM technology makes it easy to integrate with core banking systems. In fact, it should co-exist with traditional core banking systems, running in parallel, and eventually replacing them over a long period of time.”

Lon Wong

Tech Bureau CEO Takao Asayama explained that the correct application of distributed ledger technology could change the revenue model of banks. He also said that the system used in the experiment was able to process tens of thousands of transactions per second from different locations, and they are currently studying how to further increase this number.

Original article: http://themerkle.com/sbi-sumishin-net-bank-trials-blockchains-in-financial-accounting-systems/
Author: Traderman
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/sbi-sumishin-bank-mijin-dragonfly-blockchain)