• Mon, 26 Aug 2019, 09:34 AM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Sberbank to not initiate new work under Russian central bank's blockchain project

Coins.Max Pixel/Max Pixel

Wed, 03 Jul 2019, 05:24 am UTC

Efficiency issues have caused Sberbank, the largest bank in Russia, to break away from its participation in the Masterchain initiative that was launched by the country’s central bank. The institution’s head of blockchain, Oleg Abdrashitov said as much, even citing security issues that are quite the concern in today’s market. As of now, the bank is weighing its options and is trying to find another avenue to fulfill its decentralization ambitions.

Speaking to Coindesk, Abdrashitov explained why Sberbank was breaking away from the blockchain initiative by the Russian central bank. Above all else, he simply believed that Masterchain does not meet the demands that are currently the norm in the industry.

“Masterchain does not satisfy the requirements for Sberbank’s use cases, so for all future exploration we will use enterprise blockchain platforms such as Hyperledger Fabric or Quorum,” he said.

It’s worth noting that Sberbank will complete the work that it has already committed to with regards to Masterchain. However, it will not renew its participation in the project and will not work on any new ventures under the initiative.

As for Masterchain itself, its launch was recently announced to have been delayed, Cryptoglobe reports. It would appear that technical challenges are causing developments to slow down and this is exactly the kind of issue that Sberbank is talking about.

Abdrashitov said that Masterchain is not only slow, but also not sufficiently decentralized. He also pointed out security issues with the system, saying:

“Proof-of-work systems are good for thousands of participants, but if there are only five, it’s easy for one of them to rewrite the ledger.”

He further said that it is also not possible to use Masterchain for multiple purposes at once, adding that a new network has to be rolled out for every use case. Expressing his dissatisfaction with the system, Abdrashitov stressed that Masterchain would be viable if the developers replaced the proof-of-work consensus with an enterprise-friendly one.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $10,341.70 (+2.03%)
  • Ethereum (ETH) $190.28 (-0.19%)
  • XRP (XRP) $0.270700 (-0.70%)
  • Bitcoin Cash (BCH) $310.55 (+0.65%)
  • Litecoin (LTC) $73.88 (+0.39%)
  • Bitcoin (BTC) $10,341.70 (+2.03%)
Aug 26, 2019 (Monday)
09:33
Manchester City announces blockchain partnership with Superbloke
08:49
US lawmaker’s concerns on Facebook's crypto remain unresolved even after meeting with Swiss regulators
08:13
Brave Browser expands token tipping service to Vimeo, Reddit users
08:05
Craig Wright again tries to prove authorship of Bitcoin white paper
04:09
Crypto startup Circle eyes $100M fundraise for its crowdfunding arm SeedInvest
04:05
BitPay, Blockchain.com team up to offer a new way of bitcoin spending
04:04
Binance offers lifetime VIP membership to hack victims, blames KYC vendor for image leaks
Aug 23, 2019 (Friday)
11:35
Stablecoin project Terra receives funding from HashKey Capital
10:49
Three of the founding members of Libra Association consider backing out: Report
08:55
Overstock's Patrick Byrne steps down as CEO
08:52
Pundi X brings XPOS crypto payments to Venezuela's Traki retail stores
07:22
Blockchain startup Blockstack scores strategic investment from Japan's Recruit Holdings
07:19
BitGo announces support for multi-signature EOS wallet and custody services
06:39
US Treasury blacklists crypto addresses of suspected Chinese fentanyl traffickers
06:14
Chainalysis launches ‘Chainalysis KYT Alerts’ to detect suspicious cryptocurrency activity in real-time
05:13
Cryptocurrencies used to buy fentanyl, other illicit drugs: White House
05:04
Blockchain energy startup Power Ledger extends energy trading trial in Fremantle
03:53
Blockchain accelerator initiatives launched at the University of California campuses
Aug 22, 2019 (Thursday)
13:05
Crypto exchange Coincheck mulls launching IEO Platform
12:46
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft