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Abilities of blockchain technology: assessment of the US Department of Defense and the Central Bank of Kuwait

The US Department of Defense and the Central Bank of Kuwait evaluated the abilities of blockchain technology

Traditionally, the abilities of blockchain technologies are considered in the context of the financial sector, but recently other structures around the world have also been paying attention to the decentralized system. For example, in December last year, the US Department of Defense stated that it sees great potential in blockchain, and that the registry can be successfully used to eliminate the result of natural and man-made disasters.

Now, the US logistics agency (DLA) uses a rather outdated technology to track all processes, with a single center, which makes data synchronization between different systems more difficult, failures and inconsistencies occur. DLA is convinced that blockchain can solve many logistics issues by displaying the most up-to-date information and transparency with the whole technology.

The DLA issued a statement saying that the changes in transactions and trust approaches that blockchain has changed can be compared to how the Internet has changed the approaches to communication. Thanks to the decentralized technology, it became possible to transfer safely between nodes the technical properties and data of materials, to monitor data from the manufacturer from whom the raw materials are purchased, before being transported by barges.

The US Department of Defense plans to continue exploring all the abilities of blockchain technology. Certainly, it is still very far away from studying to direct implementation into processes at the state level, but such interest of US departments suggests that one day government systems can actually move to decentralized modern technologies.

The National Bank of Kuwait has already implemented blockchain technologies from the American startup Ripple for financial transfers to Jordan. True, it is not known whether this is about xRapid and xCurrent.

Ripple is a decentralized platform operating directly in the field of payment systems. Its main task is to carry out currency exchange without chargebacks. A key highlight of the technology is the consensus center, where each node is important. The network operates on the RTGS protocol, which is used as a base for online gross settlement system. Blockchain we used to see it is absent in Ripple, and more corresponds to a regular database that is distributed between nodes with super-high response speed. The capacity of this system is 1500 transactions per second, while the cost of a single operation is less than a cent.

The nodes on the servers check transactions, their number is limited, and the classic for blockchain PoW algorithm is absent. Thus, Ripple is not quite similar to other cryptocurrency systems, which, apparently, attracted the attention of the Bank of Kuwait.

New clients of the National Bank of Kuwait can use blockchain abilities. As reported in the financial regulator, this offer is a completely innovative, reliable and secure solution for remittances. In the near future, the bank plans to launch money transfers via Ripple-blockchain to other countries, after the system has been honed on transfers to Jordan.

It is noteworthy that in 2017 the NBK banned banking organizations and companies under the supervision of the Central Bank to trade cryptocurrency.

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