Bank of England Publishes Blockchain Proof-of-Concept Paper to Regulate Transactions While Ensuring Privacy

Bank of England - The Bank of England has released a proof-of-concept paper on blockchain, which aims to explore how distributed ledger technology can be configured to regulate all transactions while ensuring privacy.

The Bank of England started with this paper, which was co-published with blockchain start-up Chain, which was largely an academic discussion. The authors of the paper, which also included a Bank of England official and the head of a regulator, hypothesized a fictitious asset ownership transfer scenario to explore how a distributed ledger technology system could be configured to ensure that all parties involved agreed to a regulatory During the consensus process, transaction details will not be fully obtained.

In addition, the Bank of England is also trying to understand the impact of privacy solutions on system performance, as well as on transactions, risks and so on. Cryptographic privacy solutions that ensure all participants can share data are still in their infancy and have limited scalability for deployment, they said.

Finally, the paper concludes:

“Overall, it seems theoretically possible to configure a distributed ledger system, because it keeps transactions private while allowing all data to be shared across the network. However, with regulation for all transactions, these trade-offs still need to be further explored, especially in terms of scalability, transaction processing speed, and security around encryption technology, etc., there may still be certain risks. "