The South African Central Bank (SARB) has been honored for its distributed ledger initiative called Project Khokha. The award was given to the top bank by Central Banking, a global central banking forum.
The central bank was recognized as having the best Distributed Ledger Initiative after it successfully launched its Project Khokha.
SARB testing transaction speed, privacy, and security
According to information posted on the central bank’s official website, the Quorum-based payment blockchain was successfully used to simulate the use of DLT in a real-life setting.
Back in July, SARB tested the technology with eight banks in the country deciding to participate in the trial.
The bank revealed that the payment platform was tested in a realistic test environment and it was able to handle the daily volume of South Africa’s Real Time Gross Settlement System (SAMOS).
Developing Project Khokha
The project was designed and developed within three months. According to the press release:
“The network was built on JPMorgan Chase’s Quorum network, using Istanbul Byzantine fault tolerance, Pedersen commitments and range proofs to deliver on the combination of scalability, resilience, confidentiality and finality.”
Quorum is a permissioned blockchain developed by JP Morgan Chase and is based on the Ethereum source code.
In its original report, SARB revealed that the two methods are fast and the pilot system was able to successfully process SAMOS’ high-value payments transaction volumes across distributed sites within a calculated time.
SARB achieved its project goals
One of the goals of the Project Khokha was to increase the bank’s daily transactions capacity from 70,000 to 200,000. The project was also designed to make it possible for them to process one day’s trading in two hours.
The bank further added that it was able to reach its goal of 95% of transactions validated in less than one second. In addition to that, 99% of transactions were approved in less than two seconds.
SARB was the only one allowed to see the transactions made by the banks as they couldn’t see the transactions made by the others.
South African Crypto Market
South Africa has a very active cryptocurrency market. Bitcoin interest in the country has been on the rise in the country over the past few months. Alongside Nigeria, South Africa is considered the biggest cryptocurrency country in Africa.
The SARB is working to ensure that it regulates the market and embrace the blockchain technology in several facets of their economy.
It is worthy to note that the Project Khokha was not designed to completely move the South African financial system to a blockchain-based model. It was designed to help them understand the implications of using a tokenized asset to transfer value.