‘S team Blockchain financial platform SETL today released a technical white paper detailing the performance testing of SETL’s global bank blockchain in a cloud environment by the Regulated Responsibility Network (RLN). The network is capable of processing 1 million transactions per second (tps).
A throughput of 1 million tps dwarfs encryption and traditional systems. Ethereum currently can only handle 15 tps, while recent blockchain technology has tens of thousands of tps. The traditional card payment system processes about 1700 tps on average, and the peak transaction volume is about 24,000 tps.
RLN is a distributed ledger method, originally proposed by Tony McLaughlin of Citi in his paper, The regulated Internet of ValueIn the paper, Tony McLaughlin proposed a single shared network for tokens, and pointed out: “Such a network will be in line with today’s isolated financial architecture-the regulated Internet of Value- There is a significant difference. The system will incorporate modern monetized currencies, bonds, stocks, trading instruments and other regulated financial instruments in an’always-on’, programmable global network.”
SETL opened its sandbox for trials in November and has so far attracted some of the world’s largest banks, custodians, and electronic money companies. Central banks can access the test platform for free to test how they can issue Central Bank Digital Currency (CBDC) together with regulated commercial banks and custodial tokens.
The trial is expected to last six to nine months and will explore how to use RLN to settle interbank and cross-border transactions in real time, including delivery and payment and complex liquidity management arrangements. If successful, the network will become an important part of the international financial market infrastructure.
“This is a breakthrough moment for financial services. We are deploying technologies used in social media, carpooling, and online markets to create an extremely effective payment and settlement infrastructure. It is inherently distributed, secure, and resilient. We are very pleased to conduct this successful scalability test with a well-known cloud provider and realize the scalability advantages that cloud brings to financial services.”
—— Anthony Culligan, SETL Chief Engineer
The complete white paper is available here.