Multinational financial services corporation Visa has announced details of a partnership with information technology company IBM as part of its new blockchain payment platform initiative.
Through this partnership, VISA says it will integrate the core assets of its upcoming financial payment platform, B2B Connect, with IBM’s own blockchain platform. IBM’s blockchain was built using the open-source Hyperledger Fabric, which recently collaborated with Ethereum to upgrade its blockchain system based on the cryptocurrency’s established blockchain technology.
The platform creates unique identifiers for users that Visa claims increases the efficiency and security of making global payments. As its name suggests, B2B Connect is a blockchain-backed payment solution for use between businesses. By creating a decentralized distributed ledger (DLT) ecosystem that tokenizes sensitive data such as account numbers, Visa says that it can offer customers increased levels of security against fraud while keeping operations fully compliant with the latest government regulations.
Visa also describes B2B Connect as a “scalable, permissioned network.” According to a recent survey of cross-industry executives, scalability has been the most significant issue regarding blockchain adoption within enterprises, with close to half of non-blockchain dedicated firms struggling to process high volumes of transactions on the blockchain network quickly.
Vice President in Greenwich Associates’ Market Structure and Technology Group and the author of the report, Richard Johnson, noted that it is important to recognize that those who have optimistic expectations of scalability could determine this based on controlled tests and would face latency issues when the real-world application begins.
Nonetheless, Johnson said that some firms have found success in processing high volumes of transactions on the blockchain network quickly: “We’re beginning to see firms figure out how to get the blockchain to run fast and do a lot of transactions per second, and I think that’s really encouraging.”
Whether or not Visa has found a blockchain scalability solution, will be put to the test when B2B Connect launches in Q1 of 2019.
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