Fujitsu Unveils “ConnectionChain”, a New Cross-Blockchain Payments Tech
Fujitsu Laboratories Ltd. has announced that it has developed a new security technology named as “ConnectionChain” which allows users to exchange virtual digital currencies or make payments across different blockchains.
In 2017, there has been a huge inrush of new virtual digital currencies or cryptocurrencies as we call them through a famous process known as Initial Coin Offerings (ICOs). ICOs offers a democratic and decentralized way for new startups and companies to raise funds in exchange for their tokens. Investors in ICOs usually trade the new tokens in exchange for Bitcoins or Ethereum.
However, with the increasing investor participation in the ICO market, one of the major issues being faced currently is the settlement of currencies across blockchains and there has been a constant lookout for a stable application that can handle the payments processing at the blockchain boundaries with transparency.
Fujitsu seems to have tapped into this by its new “ConnectionChain” technology which is basically an extension of smart contract technology. Fujitsu’s new tech interconnects different blockchain and can record a series of transactions on them onto an another dedicated "connection-type chain.” The idea behind this proposal is to link different currency exchanges within a single transaction process which can also be automatically executed.
In its official release, Fujitsu writes “Fujitsu Laboratories has now developed an extension of smart contract technology which inter-connects multiple blockchains by recording the series of related transactions on each chain in a dedicated blockchain, or a "connection-type chain," to link to the currency exchange into a single transaction process that can be automatically executed. It has also developed a transaction control technology to synchronize execution timing of the transaction process on each chain.” It further added that“Settlement between virtual currencies managed using blockchains…requires a reliable application to handle the currency exchange processing at the boundaries between the blockchains, and ensuring transparency in this process has been an ongoing issue.”
Fujitsu’s new technology aims to bring in the transparency of transactions for which it has developed a transaction control technology which helps to sync the execution timing of the transaction process on each blockchain. This introduces high-level transparency as all the cross-blockchain transactions will be registered on the "connection-type chain” before crossing to another blockchain.
On its new transaction control technology Fujitsu writes “These technologies make it easy to support payments in a variety of regional currencies, and operators can also easily setup special exchange rates for promotional campaigns.”
Fujitsu Laboratories confirmed of having a successful trial of exchanges virtual currencies across different blockchains wherein the entire transactions trial was recorded in the connecting blockchain. Such a technology will also support payments in different regional currencies.
Fujitsu plans to commercialize this technology by 2018 and extend the application of this technology to other fields of data exchanges and automation. It writes "Fujitsu Laboratories will continue expanding this technology beyond currency exchange to areas such as high-trust data exchanges between companies and contract automation, while also continuing to conduct trials in a variety of fields, with the goal of commercialization in fiscal 2018 and beyond.”