- A consortium of banks, including BBVA, CaixaBank, Bancia, Banco Santander, and Banco Sabadell, has completed the test phase of the execution of programmable payments within smart contracts.
- The network tested approximately 20,000 payments on seven active nodes present in the system.
It is not alarming that several governments and banks around the world are trying their hand at blockchain technology. Given the growth of the industry since its creation a decade ago, Spanish banks have got into the act to provide better financial services. A consortium of banks, including BBVA, CaixaBank, Bancia, Banco Santander, and Banco Sabadell, has completed the test phase of the execution of programmable payments within smart contracts. The contracts are part of a Proof-of-Concept (POC) blockchain network.
Details of the test phase completed by the consortium
The network tested approximately 20,000 payments on seven operating nodes present in the network. The proper implementation of the PoC network will improve the interbank Smart Payments Platform. The payments within the smart contracts completed on average within 2.5 seconds. The network is poised to be launched for a pilot project. Furthermore, the automation of various processes such as executing, registering, issuing, and canceling bank guarantees also initiated with the first test case.
Furthermore, it will help improve credit transfers in the market that can be completed instantaneously. The process is cheaper and efficient for all parties included in a smart contract. Several developers have shown interest in programmable payments that consequently will lead to a pilot project by the banks. The system will complete the payment process upon the shipment of goods or even the signing of contracts with suppliers in a far-off land—the initiative currently overseen by Iberpay that also manages the Spanish payments system.
The future of payments system in Spain
The six-month test phase was closely monitored by Grant Thornton that also acted as the technology and legal advisor. Each participant has six distributed nodes on the network for safe, secure execution of the contract. The smart contracts will help boost the efficiency of transactions within a blockchain network. It saves a lot of time and energy for all the parties involved.
The smart contracts recently tested are on the verge of modern technology meeting traditional values. They have the potential to dominate every sphere of our lives with faster transactions within seconds. The contracts are now a reality that which was in the making for so many decades. Thus, it will help develop the financial system that is currently cumbersome and rigid.