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Japan's JCB to Associate Numerous Blockchains?

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Japanese credit card company JCB is producing a technology that connects separate blockchains, to share their excess capacity, resolving concerns that arise from heavy traffic, on a single ledger.


The system will be mutually developed, with a Tokyo-based Fintech venture, CurrencyPort. The partners will initially generate a mechanism that connects, about seven to domestic blockchain ledgers.


Virtual currencies like Bitcoin, and record transactions on an open, distributed ledger known as a blockchain. Fraud is considered impossible since information is shared among all participants. But each blockchain has a limited capacity, creating problems when the volume of transactions surges on a single network. Settlements may slow down, and fees can get more expensive, among other issues.


Such obstruction can be alleviated by connecting several blockchains to share surplus capacity. A network of connected ledgers would also allow different virtual currencies to be traded without exchange and reduce trading costs.


JCB aims to spread connectable blockchains by opening the use of technology to other companies. 


The company is still unsure about how such a system will be applied but hopes to build know-how and improve convenience.

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