SBI Teams Up With BankChain, Intel For Blockchain Deployment
India’s largest bank, State Bank of India (SBI), will adopt blockchain technology to manage the mandatory Know Your Customer (KYC) formalities in its system. The bank has joined hands with Intel Corporation to facilitate the implementation.
BankChain is a community of banks in India formed to explore, build and implement blockchain solutions. SBI is a founding member of BankChain, which now has 27 members in India and the Middle East. Primechain Technologies operates the BankChain community and will deliver an enterprise blockchain solution that runs on Hyperledger Sawtooth and Intel Software Guard Extensions (Intel SGX).
The solution will help SBI to increase the efficiency of financial transactions without having to compromise on data confidentiality and transaction security. Intel SGX can improve blockchain privacy, security and scalability while Hyperledger Sawtooth is open source and takes advantage of silicon features like Intel SGX to deliver a blockchain application platform.
“Blockchain is one such technology that enables more security, and agility, but the true impact of implementing it can only be determined by an open innovation strategy. The BankChain community welcomes Intel as the preferred technology advisor, to accelerate this innovation in India’s BFSI industry,” Sudin Baraokar, Head – Innovation, State Bank of India told Economic Times.
SBI is keen to work with other banks to arrive at blockchain use cases. “By leveraging blockchain components such as Intel SGX and Hyperledger Sawtooth and Primechain’s expertise to build blockchains, we can realize emerging fintech services such as P2P lending, crowdfunding, and digital marketplaces that enable financial inclusion,” Baraokar added.
“Blockchain is an emerging technology that has the potential to transform traditional business processes and the ways in which data is exchanged by consumers and financial institutions. Blockchain eliminates the need for intermediaries, improving business efficiency and reducing cost and transaction complexity,” Rick Echevarria, Vice President, Software and Services Group and General Manager, Platforms Security Division, Intel Corporation mentioned in the report.
The effort is an example of technology innovation in India’s banking system to enhance security and provide a trusted computing environment.Shinam Arora, co-founder of Primechain said, “The key benefits of blockchain technology for banks include greatly improved security, reduced infrastructure cost, greater transparency and auditability, and real-time automated settlement.”
Primechain’s patent pending ‘blockchain and smart contracts based self-managing KYC technology’ would be used for the Hyperledger Sawtooth-based solution, the report said.
According to a report published by MarketandMarkets, the cryptocurrency market is expected to grow from USD 541 million in 2017 to USD 2,902 million by 2023, and at a Compound Annual Growth Rate (CAGR) of 32.31 percent during the forecast period. The market is growing rapidly due to people’s strong enthusiasm in the digital currencies.
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