How long can crypto continue to ignore this US clearing house blockchain?
The largest clearinghouse in the United States, the Depository Trust & Clearing Corporation (DTCC), has provided performance details for its private blockchain.
According to a recent press release, the blockchain, called Project ION, processes “100,000 bilateral stock transactions per day, and nearly 160,000 transactions on peak days.”
DTCC describes Project Ion as a “resilient, secure and scalable” settlement service that can meet regulatory standards.
While most public blockchains process simple monetary settlements such as fees and remittances, DTCC’s distributed ledger must settle contractual ownership between tens of millions of counterparties across thousands of brokerage houseswhile remaining in compliance with NYSE or NASDAQ rules and US securities laws.
DTCC’s authorized blockchain clears shares
DTCC chose R3 and the Corda technology to build the distributed ledger that underpins DTCC’s Project Ion platform.
Currently, DTCC’s classic non-blockchain settlement system remains its authoritative record, clearing $2.37 quadrillion worth of securities by 2021. Project Ion’s blockchain is running in parallel with this older system until regulators approve the full liquidation settlement.
The clearinghouse developed Ion in collaboration with large brokerage houses such as Barclays, Charles Schwab, Fidelity and Robinhood.
Read more: Sanctions, censorship and ESG: Is Bitcoin still fungible?
How the clearinghouse’s ledger compares to other blockchains
Since Project Ion is a private distributed ledger, DTCC retains full control of the system. Access and participation must be approved by the company.
The company provides different levels of access to consortium members, such as administrative privileges to the wholly-owned depository, or view-only access to financial advisors.
Permissioned blockchains have the advantage of being more scalable than public blockchains. With fewer parties making decisions and no resources spent on consensus, increasing a blockchain’s capacity becomes much easier. The relatively easy scaling of the blockchain usually results in higher transactions per second.
Public, permissionless blockchains can still process large volumes of payments. Bitcoin processes 400,000 transactions on peak days and routinely handles 300,000 transactions daily.
But because DTCC has complex needs, which do not include decentralizationchose the scalability of a permissioned blockchain.
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