5 Things Blockchain You Need to Know for October 11, 2022
SWIFT Sets Out a Blueprint for Central Bank Digital Currency Network
TLDR: Rather than connecting with each counterpart individually, banks may need only one main global connection to reduce the number of breaks in the chain and improve efficiency.
The majority of central banks across the world are currently employing, testing, or researching CBDCs. Most aren’t eager to be left behind by bitcoin and other cryptocurrencies, but they’re perplexed by technological hurdles. After an 8-month experiment exploring various technologies and currencies, financial messaging system SWIFT has created a game plan for a global central bank digital currency (CBDC) network. The trial, which included both the French and German national central banks and global lenders like HSBC, sought to determine how CBDCs might be utilized internationally as well as turned into fiat money if necessary.
The structure of the SWIFT trial resembles a bicycle wheel, with 14 central and commercial banks connecting spoke-like into its main hub. The aim is that once expanded, banks may only require one major worldwide connection rather than thousands if they connect with each counterpart separately. As a result, there will be fewer breaks in the chain, leading to greater efficiency. The trials, which also included various distributed ledger technologies, will be followed by more complex testing in the next year. CBDCs are already in operation in a number of countries, including the Bahamas and Nigeria. China is well ahead on the development of an e-yuan, while the Bank for International Settlements has been conducting cross-border experiments. The most significant advantage of SWIFT is that it has a well-established network that connects over 11,500 financial institutions and investment funds in over 200 countries.
The future of payment and investment may be dramatically different thanks to digital currencies and tokens. However, that potential can only be realized if the different approaches being explored are able to connect and work together. We see diversity and compatibility as two of the most important aspects of the financial ecosystem, and our innovation will help bring about a digital future.
Emirates Will Train Thousands of New Cabin Crew in the Metaverse
TLDR: Can you picture a cabin crew member training in the metaverse? The metaverse technology provides highly effective and accurate training methods for cabin crew through VR, making it easier for airline staff to be prepared.
The next step for the internet is the metaverse — an online realm that takes many different forms. This can include gaming, internet communities, and business meetings where people will be able to communicate through avatars of themselves. Emirates, a Dubai-based airline, announces that it will begin training its new cabin crew in the metaverse instead of traditional classroom settings.
The metaverse technology provides highly effective and accurate training methods for cabin crew through VR and simulated real-life scenarios, making it easier for airline staff to be prepared. This allows the airline to design an aircraft that will look exactly as it should in 2024. The Metaverse can be compared to a more immersive Zoom meeting, in which people feel as though they are in the same room. In order to keep up with travel demand, the airline is searching to recruit hundreds of new cabin crew members.
Of course, the metaverse can’t perfectly recreate all the training that Emirates cabin crew go through in real life. Practical hands-on sessions such as aircraft evacuation, ditching, and medical emergency situations will be held in a state-of-the-art aviation training institution. Augmented reality (AR) experiences may hold the key for the metaverse to reach its true potential. This evolution is a part of the plan to bring people from around the world to work on its future-focused projects including those relating to the metaverse, NFTs and Web3.
How Zero-Knowledge Proofs Will Guarantee Compliance for DeFi Adoption
TLDR: Zero-knowledge proofs have been found to have lawful applications outside of finance. With this technology, you can rest assured that only the relevant data is shared;
Following U.S. Treasury sanctions on a prominent crypto mixer, the debate in the DeFi industry rages, but real progress is taking place beneath the surface. The decentralized finance (DeFi) community is in an uproar following sanctions from the U.S. Treasury against a popular crypto mixer, but something far more important is happening without anyone noticing. The technologies powering privacy-preserving protocols like zero-knowledge proofs have found new legally compliant use cases outside of finance altogether.
In a world where we are constantly struggling to keep our information secure, zero-knowledge proofs provide us with a way to verify data without revealing sensitive content. This tool can help us both protect and gain value from our sensitive data. Zero-knowledge proofs are not a new invention; they’ve been around for decades. Their mathematical logic may be used to verify any number of data exchanges or areas that could benefit from decentralization and increased security.
With zero-knowledge technology, you can rest assured that only the relevant data is shared; for example, your age could be verified with a driver’s license without also sharing previous addresses or other unnecessary information. Zero knowledge, when applied to our banking system and credit scoring, may and will revolutionize financial access for individuals who face discrimination. The same applies to tax verification or a privacy-preserving voting system
In reality, real-world applications have already emerged, as zero-knowledge proofs have been developed to assist the Danish Red Cross’s humanitarian operations in Somalia. Given the patients’ delicate circumstances, the organization was able to demonstrate that individuals are eligible for particular medical treatment without disclosing their names or other personal information.
Mastercard Launches New Crypto Fraud Protection Tool
TLDR: Finally, there is a solution for banks to detect and prevent fraud on crypto merchant platforms.
As the use of digital assets becomes more popular, and the adoption grows beyond enthusiast circles, Mastercard releases new software to help detect fraudulent activity related to digital asset businesses. Since the most common uses for blockchain technology are trading and “DeFi,” companies within the traditional financial sector are collaborating with digital asset firms more frequently. The software will be concerned more with users’ transaction activity, rather than whether or not the blockchains themselves are compliant with regulations. This encompasses both digital asset service operators and blockchain projects themselves.
The service utilizes artificial intelligence, blockchain data, and public records of crypto transactions to determine crime-related risks of crypto exchanges within the Mastercard network. The technology will report on over 7,000 digital asset services and indicate things that are at risk or require further monitoring. It will then be up to individual card-issuing institutions to decide whether or not to keep doing business with them. With this innovative software, it is now a piece of cake for law enforcement to hunt down crypto criminals and utilize intelligent data science and machine learning algorithms to study and pinpoint exceptions in public blockchain data. Mastercard isn’t the only one jumping on this bandwagon- its competitor Visa has also made noteworthy investments in the cryptocurrency industry.
Though blockchain and digital assets have yet to truly revolutionize the world, they remain as powerful tools with great potential. They have already changed the way we verify data, and with continued development, they may one day change the entire economy. For now, however, they remain largely in the hands of traders and price speculators. Have you invested in any digital assets? What do you think is their most promising use case?
The Future of E-Commerce Payments in the Metaverse
TLDR: With the recent popularity of the term “metaverse,” many are wondering if this new virtual world presents a sales opportunity for businesses. The answer? Yes — and biometrics hold the key to success.
In reality, all payments made today — with the exception of cash transactions conducted in person — are virtual. Even though a business may feel it needs to accept different types of payment in the virtual world, using cryptocurrencies for payment transactions in the metaverse is risky.
When it comes to metaverse payments, conventional payment methods are a good choice. Biometrics may also be used in this virtual environment to confirm different payment systems. In a virtual world, it is easier for shoppers to pay with their voice than to type out long passwords. People value speed and convenience, so businesses want to satisfy customers’ needs while also ensuring secure payment transactions in order to reduce the risk of fraud. Therefore, biometrics should play an important role in payments made in the metaverse.
Investments in this electronic realm are increasing. Mastercard has revealed that it is developing new technology that will work in the metaverse and enable customers to make biometric payments utilizing their face or hand. With all of this activity, payment providers will undoubtedly follow the metaverse to other markets. While it is possible to accept payments in order to enhance the metaverse’s sales potential, careful planning and execution are necessary to provide a good customer experience — and biometrics will almost certainly be a key consideration.
Financial messaging system SWIFT has laid out its blueprint for a global central bank digital currency (CBDC). The key question for central banks: What could it mean?
Around 90% of the world’s central banks are now using, trialing or looking into CBDCs.
In this week’s episode of the Blockchain Brief we talk about exploring how CBDCs can disrupt the banking system, listen to our new episode here:
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