Banks back initiative to enhance blockchain development

The Linux Foundation will, with the help of financial institutions, spearhead a new initiative to advance blockchain technology with the aim of developing an open source distributed ledger.

By Editorial
The Linux Foundation will, with the help of financial institutions, spearhead a new initiative to advance blockchain technology with the aim of developing an open source distributed ledger.

The project, which has already secured commitments from J.P Morgan, State Street and Deutsche Boerse among others, will develop industry specific applications using blockchain technology to support business transactions.

Using the new ledger tool, currently named the ‘Hyperledger mark’, business networks can be created without a central point of control. Such technology can assist in the settling of securities as well as aiding companies to manage the movement of goods and complying with regulators.

Jim Zemlin, chief executive director of Linux Foundation, spoke of how the ledgers project will benefit the industry.

“Distributed ledgers are poised to transform a wide range of industries.

“As with any early-stage, highly-complex technology that demonstrates the ability to change the way we live our lives and conduct business, blockchain demands a cross-industry, open source collaboration to advance the technology for all.”

The ‘Hyperledger mark’ represents the latest development for blockchain technology, seen as the main technological innovation of Bitcoin, with distributed ledgers being utilised in a variety of industries including banking and shipping.

“Deutsche Börse group sees great potential in blockchain technology and is delighted to join this initiative, said Jeffrey Tessler, Member of the Executive Board, Deutsche Börse AG

“As a market infrastructure covering the entire value chain we believe that the true value of the blockchain will only materialise as part of industry initiatives such as Hyperledger project.”

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