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According to a report from efinancialnews.com, founder of European trading venue Chi-X Peter Randall has developed an accelerated version of the Bitcoin blockchain, which supports 5,000 transactions per second and could reach 100,000 transactions per second. Currently, Bitcoin blockchain supports a mere 7 transactions per second.
Peter Randall and former hedge fund manager Anthony Culligan are jointly setting a firm to provide the new settlement infrastructure, SETL.
In a statement, Randall said,
“The acceleration version of the blockchain “distributed ledger” would simplify post-trade transactions and could ultimately make redundant much of the existing infrastructure, which is fragmented, cumbersome, costly and in need of technological innovation and simplification.”
The cost-reduction potential of the Bitcoin blockchain was earlier also highlighted by a leading Spanish bank Santander, which estimated that banks can save up to $20bn a year by 2022 by using the ledger technology.
This faster blockchain will be able to cater to a multitude of transactions in times of crises such as the Greece crisis, which exposed the weakness of the Bitcoin system.
The computers participating in the network will have to be authorized and identifiable. To keep the regulators and auditors in the loop, SETL is also open to external investigation as well.
Initially, SETL is planning to make its foray in the payments industry, preferably banks. The next phase would see the implementation of the faster system in the settlement of asset trades.
Until now, the new venture was privately funded, but “the firm is now looking to raise capital,” said Randall.
With this blockchain project, the list of trading executives looking into the revolutionary potential of the ledger technology has added another eminent personality. New York Stock Exchange head Duncan Niederauer and Nasdaq OMX Group Inc. CEO Bob Greifeld are among the other trading leaders who have jumped on the blockchain bandwagon.
