Russian Central Bank Group Prepares 'Masterchain' Ethereum Fork for Testing

Russia's financial incumbents are moving ahead with work on a new distributed ledger platform designed for enterprise use.

AccessTimeIconJun 13, 2017 at 10:00 a.m. UTC
Updated Sep 11, 2021 at 1:26 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A group of Russian banks, payment firms and financial startups have completed an initial working version of their previously announced 'Masterchain' blockchain software.

Revealed exclusively to CoinDesk, the Association of FinTech – a group formed in January under governance of the Central Bank of Russia – completed the work at the end of May. Built using a fork of the ethereum blockchain, the software is now ready to be used in ongoing proofs-of-concept, according to those close to the effort.

But while built from the ethereum software, there is one key difference: Masterchain is built according to domestic cryptography standards.

In interview, Kirill Ivkushkin, the Sberbank representative in the association's distributed ledger working group, suggested that this step was necessary to ensure enterprise blockchain applications could seek wider use in Russia.

Ivkushkin told CoinDesk:

"When there is private, personal data is involved, we must use cryptography which is certified in Russia. The direct use of platforms like ethereum and Hyperledger is limited to platforms that don't involve storage of personal data."

Ivkushkin said that Masterchain will use many of the techniques and features of ethereum, though it will not be able to connect to existing nodes running software for the public protocol.

With the completion of the software, Masterchain will now be used to help create minimum viable products for group members, in use cases as diverse as peer-to-peer insurance and mortgage tracking and issuance.

Hinting at the work to come, he concluded:

"The goal is for members to implement use cases in production between the end of this year and mid-2018."

Tech testing image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.