Japanese IT firm Fujitsu has unveiled a new payments technology designed to facilitate transactions between blockchains.
Announced today, the "ConnectionChain" project is aimed at providing a way for two cryptocurrency networks to interoperate. In statements, the company – which is a member of the Hyperledger blockchain consortium and has developed several products based on the technology to date – suggested that rising activity around cryptocurrency exchanges and initial coin offerings (ICOs) is driving demand for such services.
"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," the company said.
To that end, Fujitsu is looking at using a dedicated "cross-chain" that would encompass information from other blockchains, in addition to a transaction control mechanism for organizing when transactions are timed and executed.
Here's how Fujitsu described the product:
In statements, Fujitsu indicated that it could move to commercialize the product as early as next year – though such a move would be contingent on further testing and development, according to the company.
"Fujitsu Laboratories will continue expanding this technology beyond currency exchange to areas such as high-trust data exchanges between companies and contract automation, while also continuing to conduct trials in a variety of fields, with the goal of commercialization in fiscal 2018 and beyond," the firm said.
Chain crossing image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.