The post Algorand and Hedera Tested by Riks Bank for CBDC Solutions appeared on BitcoinEthereumNews.com.

A research paper titled “Potential Climate Impact of Retail CBDC Models” tests Algorand and Hedera as a representation of the e-Krona model and its decentralized design.  At press time, 130 countries had explored the possibility of rolling out a CBDC, representing 98% of the global GDP.  The Sweden Riks Bank has reportedly subjected Algorand and Hedera to test for retail solutions for the e-Krona’s project. In a report entitled “Potential Climate Impact of Retail CBDC Models,” Riks Bank explored a several aspect of the project, claiming it is designed as a token utilizing blockchain technology. According to the report, the Sweden e-Krona is being designed with three distinct models namely: a highly centralized design, a semi-centralized design, and a decentralized design.  To access the potential electricity use of conceptual semi-centralized and decentralized designs of e-Krona, Hedera was used to represent the model. As a private permissionless network, Hedera has a gatekeeping strategy applied to a network of a limited number of better actors.  The access to the network is limited to these actors, thereby reducing the risk of external attacks. Each actor (except the core host, i.e. the Riksbank) will only need to run and maintain systems that relate to their interfaces and services towards the consumers as the Riksbank is hosting the core system. Hedera also constitutes a high-tps system. Hedera’s protocol currently has 21 validators with a contemporary throughput of 48 tps and the max postulated sustainable system throughput is 10000 tps. Platt et al., (2021) estimated per transaction electricity consumption of Hedera’s protocol in the range of 0.00002 – 0.00004 kWh/transaction. Role of Algorand in the e-Krona Project For Algorand, Riks Bank used it to represent the decentralized design. Algorand operates as a permissioned network where the participating actors are licensed as financial institutions and classified accordingly.…

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Filed under: News - @ July 8, 2024 6:26 am