Fujitsu develops security technology that safely and easily execute exchanges and payments in different virtual currencies
Fujitsu Laboratories today announced the development of its – ConnectionChain – a security technology that can safely and easily execute exchanges and payments in different virtual currencies. A great deal of attention has recently been focused on virtual currency exchange among individuals and companies using initia coin offerings (A method of raising capital in which an individual or company issues a proprietary virtual currency), to raise capital from the sale of virtual currencies. Settlement between virtual currencies managed using blockchains, however, 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 has now developed an extension of smart contract technology (A system in the blockchain that automatically executes checks on the status and fulfilment of a contract) 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. With these technologies, transparency of transactions can be guaranteed, because all transaction processes are recorded as a trail in the connecting blockchains, even when they cross multiple chains.
In a trial that used this technology in a simulated virtual currency exchange system, Fujitsu Laboratories confirmed that when the currency exchange process was executed that the entire transaction trail for the virtual currency exchange was recorded in the connecting blockchain. 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.