Blockchain is gaining momentum every day and is becoming an integral part not only of the financial market, but also of the most diverse aspects of human life. However, for full implementation, the technology must be certified and allowed for legal use. It was this factor that pushed the Central Bank of the Russian Federation to create a new blockchain platform – Masterchain.
How the Masterchain was created
The head of Sberbank, German Gref, has repeatedly expressed his approval of the blockchain. He is confident that in a few years this technology will penetrate all industries and “radically change the entire economic order.”.
As explained by the Central Bank, Masterchain is a “network tool” for participants who use blockchain technology. The platform allows you to “quickly confirm the relevance of data” for a transactional client. The innovation also enables instant messaging between counterparties on the platform, while providing confidence in financial transactions..
In addition to technical conversations, it is interesting and even unexpected to see how the Central Bank of the Russian Federation is developing a blockchain based on Ethereum. This platform was developed by the Canadian-Russian programmer Vitalik Buterin.
The head of the FinTech Association, Alexey Arkhipov, spoke about the long-standing desire to create a blockchain network that meets all the requirements. He also assured: “According to our estimates, the finished product will be fully completed by the beginning of 2019. At the same time, we plan to implement the cases of our participants on the Masterchain to test the potential and ready-made technical solutions. In addition, cryptography certification needs to be done, which will take a long time. As for the allocated funds, the Association uses its own funds, which are contributed by the members of the FinTech Association ”.
Thus, the main task of creating the Masterchain is to reduce the labor costs of obtaining and verifying guarantees for the participants in the chain, including the bank, principal and beneficiary. The goal of the new blockchain platform is to minimize print counterfeiting. It is equally important to increase the bank guarantee due to the emergence of smart contracts. The digital guarantee will soon be the primary digital document and will be made available in paper video for review.
Unfortunately, now the blockchain is not regulated in any way in the legal field of the Russian Federation. According to Olga Dergunova, Deputy Chairman of VTB Bank, there are reasons that cause a number of difficulties in obtaining legal status: “Firstly, this is the lack of appropriate regulatory regulation in relation to certain products, for example, digital currencies, and secondly, there are requirements for the implementation of interaction processes exclusively in paper form “.
Masterchain is already doing its job within the framework of the laws of Russian regulation thanks to Russian cryptography. It can be concluded that the Russian blockchain platform has been officially adopted by the Central Bank and the main players in the banking market. Active use of the Masterchain is planned to begin in 2019.
Ekaterina Frolovicheva, Head of Technological Innovation at Sberbank, said: “Sberbank’s involvement in the exchange of transactions is a significant step towards building next-generation infrastructure. The system currently provides the following capabilities: identity management, simplification of arbitration and an increase in the speed of mutual settlements. This proves that distributed peer-to-peer blockchain technologies have good prospects in the financial market. “.
Assistant in working with Masterchain
The FinTech Association working group has developed a White Paper for Masterchain. The purpose of this protocol is to describe in detail the application and technical aspects of the blockchain platform. White paper can be expanded and corrected due to changes in the legislation of the Russian Federation, regulations of the Bank of Russia.
This document is intended to be the foundation on which anyone can build their own currency. Software implementation "Masterchain" will contain simple tools that will allow everyone to create and issue their own currency with their own rules, without having to do software development.
The document also states that the modest success of the Masterchain could make budding investors (and even those who just hold bitcoins) very rich without too much trouble. However, if the Masterchain becomes too successful and begins to replace traditional currencies, the consequences can be enormous..
The guide is intended for trained users familiar with the general distribution conditions, technical terms and definitions that are used to describe and formalize the protocols of decentralized networks..
Future with a new platform
In the future, Masterchain will completely change the situation with mortgages. Loans are reinvested with the help of the Housing Mortgage Insurance Agency and become the subject of a sale and purchase transaction. In 10 years it is planned to make 2⁄3 of the existing loans part of the common market. For convenient storage, depositories have been created, which are considered uniform for the market. The introduction of the Masterchain will reduce the costs of such campaigns.
Great hopes are pinned on Masterchain. After the launch of the platform, they plan to turn this project into the largest electronic data warehouse in the world. When connecting to the Rosreestr network using the Masterchain platform, state registration of rights will be carried out.
An integral part of the execution of most procedures is a bank guarantee. It is thanks to this factor that experts actively support Masterchain. It will help to avoid a number of unpleasant moments, for example, falsification of important documents..
And yet the main goal of the project is to get away from any possibility of a dishonest deal. It should be said that Masterchain will save you from long and numerous documentation fees in order to provide guarantees. However, this has not been achieved at the current stage. Therefore, the creators of the Masterchain are in a dialogue about convenient storage and provision of existing guarantees. Participating banks will receive bonuses: their own nodes in the Masterchain, which are needed to collect new information protected from intruders.
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