Commonwealth Bank of Australia Builds a Blockchain, Westpac Hosts Challenge

Two of Australia's big four banks are bringing their Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term ambitions closer to reality.

Commonwealth Bank of Australia (CBA) literally built a blockchain. According to Australian Financial Review, CBA put together five 1 GB computer boxes and loaded them up with ledgers and keys. Each computer represents a node in the dummy blockchain and would host a distributed ledger to validate transactions.

It reportedly took the bank's IT team two weeks to build the code for the scheme.

Bitcoin's blockchain and other distributed ledger systems inspired by it are envisioned to change the way banks settle securities and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.

CBA earlier this year announced plans to adopt the Ripple protocol for currency transfers. It was also one of the first banks to join a startup-led consortium that aims to develop blockchain technology in collaboration.

On the surface, it would seem that Australian banks have a love-hate relationship with cryptocurrency. They have been proactive with their blockchain technology endeavors, and CBA CIO David Whiteing even hinted that the cryptocurrencies themselves aren't so bad.

On the other hand, Australia's banks have also reportedly been closing the accounts of bitcoin startups, and the country's competition watchdog reportedly began investigating.

Another one of the big four, Westpac, is holding a "blockchain design challenge", which will bring together developers, technology executives, bankers and lawyers. Westpac too announced plans to explore Ripple earlier this year, and was disclosed as one of the investors behind Coinbase's record-breaking $75 million funding round.