According to local media Taipei Times, May 14, reported that privately owned Taipei Fubon Commercial Bank has become the first bank to bring in action the blockchain based payment system in the country.
In March 2017, Taipei Fubon Bank had revealed that plans to introduce blockchain based payment system when they signed a contract with the university to carry out “key technology and engineering R&D for [a] blockchain payment network.”
The blockchain based payment system is deployed in restaurants and merchants near National Chengchi University, announced the bank.
The payment system is running on Ethereum (ETH) network, the blockchain powered payment application uses Istanbul Byzantine Fault Tolerant (BFT) consensus protocol,
this reduces the time taken for a transaction and also cuts down on transaction fee. The algorithm has cut transaction times to less than one second, said the bank.
An improved method of recording data transactions is provided by the newly-launched blockchain deployment. Every transaction that takes place is quickly encrypted and recorded in the blockchain. Through the blockchain account book, the queries of the merchants will be completely solved as all transactions will be available in the blockchain.
The transaction volume of cooperative merchants in the zone near the university has quadrupled over the two-week period following the launch said the Taipei Fubon Bank.
The transaction volume of cooperative merchants in the zone near the university has quadrupled over the two-week period following the launch, said, Taipei Fubon Commercial Bank. Taipei Fubon Bank stated that the next stage in the project’s development is to expand the blockchain-powered payment system to stores and
businesses across the Chengchi area, creating a demonstration zone for the new application.
In January, using blockchain to provide technological advances like pollution sensors and health history tracking to citizens, Taipei announced that they intend to turn into a ”smart city,”. In February, to improve “the security and efficiency of payment systems the governor of Taiwan’s central bank Yang Chin-long stated that the bank is exploring blockchain applications.