Project Khokha has literarily fetched the South African Reserve Bank the award of “best-distributed ledger initiative” which was duly inscribed on the Central Banking publication. The award is due to the fact that the institution has been able to successfully use the Ethereum blockchain platform to process payment and settlements.
A test which was conducted shows that Distributed Ledger Technology (DLT) can enable transactions processing with further improvements for global operations, which is rather herculean in the analog system. Central Banking also noted that the success of the initiative is an indication that regulators need to focus on financial security and privacy concerns to improve transaction processing in the world of finance.
Best Distributed Ledger Initiative Award
The efforts and dedication contributed to the Khokha initiative have been recognized as well as the inherent potentials being shown in the central banking, supervisory as well as the regulatory environment, the best-distributed ledger initiative award was presented to the South African Reserve Bank (SARB) in a dinner hosted by “Central Banking” in Singapore.
The Deputy Governor cum executive sponsor of the Fintech program and the Khokha initiative, Francois Groepe was presented the award on behalf of the South African Reserve Bank (SARB), he expressed his gratitude saying; “We are truly appreciative of and humbled by, the award and for the recognition of the effort made on Project Khokha. He further stated in his speech that;
“I am proud of the efforts made by the South African community in deepening knowledge of, and leveraging off, new technologies such as distributed ledger-based systems, especially those that are core to our economy such as wholesale payment systems. The award recognizes the importance of collaboration, focused effort and shared knowledge in a productive and transparent manner.”
The Khokha Project
It was reported in June that the Reserve Bank Governor, Lesetja Kganyago, launched Project Khokha in Q1after a trial for the managing wholesales payments between banks that are specialized in settlement via the Distributed Ledger Technology (DLT).
The ingenious Khokha network after successfully operating at the rate of processing about 70,000 transactions per day has looked forward to scaling up the volume to 200,000 daily, replicating the typical South African cumulative settlement requirements targeted at potential growth. To process the transactions takes about two seconds across a network of geographically distributed nodes. The South African Reserve Bank has also been able to keep a tab on regulatory oversight aspect of the system.
Another fascinating aspect of the project which was Security system was also tested so as to ensure that transaction details of users remain private without unauthorized party assessing the features, this also implies that banks were unable to see the transactions of one another thought SARB retained visibility. Despite all these, the program remains a success with Groepe stating that;
“This is only the starting point. The implementation of a production-ready system requires a deeper understanding of complexities that were not within the scope of this initial project.”
Awarding a successful initiative is indeed another way to promote the culture of the blockchain technology as this would serve as an incentive to startups that have delivered and to healthily compete in the emerging sector, the fact that this occurs in Africa where the blockchain initiative is not so popular makes.