Dutch authorities criticized blockchain technology

Home » BLOCKCHAIN » Dutch authorities criticized blockchain technology
2018-06-07
Dutch authorities criticized blockchain technology

According to the representatives of Central Bank, blockchain technology is still a useless addition to the national Dutch payments system. Analysts of De Nederlandsche Bank (DNB) concluded that distributed registry technology (DLT) is inappropriate for the current financial and payment infrastructure due to its inadequate ability to scale and handle large volumes of transactions.

DNB’s view is based on the results of experiments within the Dukaton project, which has been testing four DLT prototypes during the last four years . The experiments of Dukaton were designed to find out what value technology could bring to the current payment system of the Netherlands. The first prototype was based on the source code of bitcoin.

According to the results of the testing, the central bank acknowledged that blockchain can increase the stability of the financial infrastructure to external attacks, but this advantage is offset by the complexity of “scalability, power and efficiency.”

“The current payment systems are very effective and can handle large volumes and ensure the legality of payment. Tested blockchain solutions demonstrate that they are not efficient in terms of costs and energy consumption and can not process a large number of transactions, “the Central Bank report says.
At the same time, DNB does not rule out the possibility that as the industry progresses, advanced algorithms will be able to meet all the technical criteria of the Dutch financial system. The central bank stresses that it will continue to invest in further development of applications and conduct experiments with the blockchain.

CRYPTOCURRENCIES
  • bitcoinBitcoin$5,080.08
  • ethereumEthereum$165.12
  • rippleXRP$0.328066
  • tetherTether$1.01
  • eosEOS$5.39
  • stellarStellar$0.115270
  • litecoinLitecoin$79.67
  • cardanoCardano$0.084614
  • tronTRON$0.026716
  • moneroMonero$67.94
  • iotaIOTA$0.319307
  • nemNEM$0.066076
  • dashDash$121.75
  • neoNEO$11.41
What is Cryptocurrency? How to Use, the Future of Crypto, the History of Bitcoin
Cryptocurrency market is actively developing and expanding. This relatively new industry is causing a lot of questions and attracting a huge number of investors, businessmen and ordinary people. “What is the future of cryptocurrency?”, “How to choose cryptocurrency exchange?”, “How to sell Bitcoins?” “What about cryptocurrency mining”? Millions of people read cryptocurrency news everyday and […]
2019-04-08 0 48
What is Bitcoin?
The cryptocurrency industry is becoming more and more popular all around the world. Despite the fact that there are more than 1000 different cryptocurrencies and the number keeps growing, cryptocurrency is often associated with Bitcoin. Bitcoin is the first modern cryptocurrency in the world; it attracts thousands of users and investors from different countries. Millions […]
2019-03-20 0 46
Bitcoin, Ethereum, Ripple, Monero, Dash, Tron: major differences and features
Investors see different names of cryptocurrencies and the movement of their courses, but typically don’t even know why the digital coins are so popular. Most of us have already Googled “How to buy Bitcoin” or “How to sell Ethereum”. Cryptocurencies are becoming more and more popular: Bitcoin price is fluctuating and its value is not […]
2019-03-19 0 45
What is Blockchain?
“Giving users easy access to many different kinds of digital assets on the blockchain and, particularly, tokens that are linked to assets in the real world, is crucial to seeing blockchain adoption reach the next level, and I applaud Digix Global’s initiative in being the first of many such projects to successfully launch” – Vitalik […]
2019-03-06 0 43
© 2017–2018