Datachain Collaborates With JCB For Blockchain Interoperability in Payments

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‍Datachain and JCB have agreed to conduct joint research to realize interoperability between multiple different blockchains in payments.

Through this joint research, Datachain and JCB will sort out the way blockchain interoperability should be in payments with a view to applying the technology to DVP (Delivery Versus Payment) and PVP (Payment Versus Payment) settlements, and aim to create innovative services by integrating the assets and know-how of both companies.

Background

There has been an accelerating trend in various countries to consider digital currencies based on blockchain infrastructure in recent years. In Japan, the Bank of Japan announced in April 2021 a demonstration experiment on a central bank digital currency.

At the same time, projects to build payment infrastructures and payment networks compatible with digital currencies are beginning to gain momentum worldwide. To give a few examples, the Blockchain Service Network (BSN) (*1), a national blockchain project in China, and Project Ubin (*2), a DLT (blockchain) payment project led by the central bank of Singapore, are representative cases. Those projects have a mechanism to achieve interoperability between multiple digital currency platforms and between digital currency platforms and business platforms.

Datachain has been conducting research, development, and demonstration experiments on blockchain interoperability. In May 2021, Datachain's blockchain interoperability project, YUI, was approved as a Labs project by Hyperledger.

Click here for more information on "YUI."

GitHub：https://github.com/hyperledger-labs/yui-docs

As described above, as interoperability between blockchains has become an essential theme in promoting digital currency projects, Datachain has started joint research with JCB, which has expertise in payment infrastructures and payment networks, to realize interoperability in payments.

*1 BSN（Blockchain Service Network）：A national blockchain project led by the Chinese government. It aims to establish a "Universal Digital Payment Network (UDPN)" to enable digital currency payments in various systems.

*2 Project Ubin： A DLT (Blockchain) payment project led by the Central Bank of Singapore (Monetary Authority of Singapore). It will solve issues in the financial domain using blockchains, such as digitizing the Singapore dollar and DvP payments.

The Theme of Joint Research

In this joint research, we plan to focus on the following topics:

1. Comparative evaluation of interoperability methods suitable for commercial enterprise services
2. Analysis of the interoperability system structure and functions of the infrastructure being considered and developed by BSN and other significant projects
3. Detailed study of the use of Cosmos' IBC Protocol(*3), Hyperledger Labs project "YUI" and Datachain's solutions.

*3 IBC Protocol： Abbreviation for Inter-blockchain communication protocol, a specification standard for ensuring interoperability between blockchains developed by the Interchain Foundation and the Cosmos project.

Future Initiatives

Through this joint research, Datachain and JCB will sort out how blockchain interoperability should be in payments, with an eye to applying the technology to DVP and PVP settlements by digital currencies. We will continue to create innovative services by combining the assets and know-how of both companies.

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