Digital Bank of Santander plans to use in the public square Ethernet chain to explore customer cash
The Spanish banking giant Santander (Santander) is a project that aims to explore the use of digital public square Ethernet chain to achieve clients’ cash.
The message from Ether.camp founder and Java RomanMandeleil Ethernet Fang client developers discussed in today’s Devcon2 conference to announce, on behalf of the Bank of Santander has confirmed the news. The Bank of Santander said that the goal of the project is to be issued by a bank funds open to the community of innovators, to improve the working efficiency of the bank.
The outside world is filled with all kinds of proof of concept projects and block chain alliance, and the Bank of Santander to issue digital cash in public on the chain can be said to move in the global scope is special. Ethernet network has been running workshops for more than 1 years, the market value of more than $1 billion, the average daily trading around $40 thousand.
Mandeleil explains the operation mode of the Bank of Santander project in the interview. Customers can be in the bank account funds into a tagged online currency CashETH, the currency can be exchanged for banknotes.
Mandeleil told CoinDesk:
These tokens are supported by the real currency of the Bank of Santander. You can put them into dollars whenever and wherever possible.
In the demo, Mandeleil simulation of a virtual prototype technology by its customers to create a digital currency, just a mnemonic consisting of a password to connect brain wallet (brainwallet), then the digital currency for online shopping. (although in the past a lot of brain wallet, but he insisted that the data show that this version of the brain wallet is easy to crack).
The Bank of Santander representative pointed out that they are working with Ether.camp, trying to find more banking partners in this project. In addition, they also plan to hold several programming Marathon (hackathons), designed to develop more micro payment case.
In essence, the purpose of this project is to bank account service to bring more new ideas and trading services. In addition, Mandeleil said that this project is the start-up company’s vision, hope to be able to use block chain technology to bring more benefits to banks and consumers. He said:
This is more like a development, rather than a reform.
However, he stressed that the project if you can successfully establish the relation between is a publicly traded financial enterprises and the chain leap.
(if the project is successful) you can set up more things, you can also prove to the regulatory authorities, “blockchain nothing terrible”.
Mandeleil shows a system. In this system, the Bank of Santander, the customer can choose three instead of traditional bank accounts linked functions, transfer or refund tokens.
If the user chooses tokens their funds, the system will establish payment channels, low cost to $0.01. Which will produce small fees as the Bank of Santander’s income, the amount depends on the user mode of allocation of funds. During the show, Mandeleil shows a sum of $350 to a square block chain Ethernet test version, which will cost $1 for gas, gas is necessary for the execution of the trade network Ethernet workshop.
After pay the gas fee in advance, the user can preset the number of transactions. If the number of transactions increased, gas costs will rise. Mandeleil will be the Bank of Santander dollar as a powerful competitor of PayPal.
This system can realize the flexible use of funds. As long as you pay for a click, then add the key (privatekey), then you can check the balance and reliable trading.
In order to let us understand more clearly about this project, Mandeleil demonstrated a prototype technology to CoinDesk. The user can use the token in the New York Times test version of the site in the capital to enjoy the subscription service.
Mandeleil mentioned that these digital funds can cash in the Bank of Santander, but at the same time, users can also use the mutual trade.
From this perspective, the project also helps to expand the user base of the bank, bring a new source of income for the bank.
According to Mandeleil, before the project began in 7 months, when the Bank of Santander representative Ether.camp team showed their own ideas, but the smooth implementation of the project still needs a lot of work.
The Bank of Santander side faces regulatory obstacles, the other side continues to make efforts for the development of the project.
For example, the Mandeleil is discussing an important problem and the Bank of Santander. If the project after the release, many banks have to follow, have issued their own digital cash, then it will bring interoperability and settlement.
However, Mandeleil believes that block chain market is currently have the ability to solve similar problems. For example, he proposes an encryption currency conversion tool as a way to solve the above problems.
Mandeleil Bank of Santander and the plan for the next step to find more banks for the project partners, will the project with UBS (UBS) launched the settlement currency project comparison. It is worth noting that a member of the Bank of Santander is also the currency settlement project.
On behalf of the Bank of Santander pointed out that the lack of project development is a big obstacle to the legal framework, they are currently studying whether to apply for some related licenses.