The Taipei Fubon Commercial Bank, a private commercial Taiwanese bank, has launched the first payment system in the country, which works on the Ethereum blockchain.
The new Ethereum billing application developed by the Taiwanese bank is implemented by the Byzantine fault tolerance (BFT) protocol, which reduces transaction time and also helps lower the cost of payments. According to the bank's representatives, the algorithm reduced the transaction time by up to several seconds.
The essence of such payments is that transaction information is encrypted and stored on the blockchain, which allows sellers to have quick access to complete information about the finished transactions.
The restaurants and shops that are located near the National University of Zhengji in Taipei were the first to test the payment blockchain system. According to Taipei Fubon Bank, two weeks after the launch, the volume of transactions in the area near the university has increased four-fold.
Previously, Taipei announced its plans to create a "smart city"; to achieve this, a number of projects were planned that would improve the integrity and reliability of data in government services and other departments.