Japanese IT firm, Fujitsu, recently announced their new cryptocurrency payment system, ConnectionChain.
Japanese IT firm, Fujitsu, recently announced their new cryptocurrency payment system, ConnectionChain. This is an online payment platform that connects different types of blockchains to facilitate exchanges and payments in different cryptocurrencies.
Fujitsu representatives describe ConnectionChain as a security technology that allows different users to securely connect to several blockchains. This new connectivity leads to inter-operational feature, which in turn allows ConnectionChain users to issue payments and execute trades in multiple cryptocurrencies. Fujitsu explained that ConnectionChain’s development was driven by demand among persons and organizations who use initial coin offerings to trade and raise capital via virtual currencies. In this sense, Fujitsu’s new technology may be considered as a kind of forex trading platform for virtual currencies.
According to Fujitsu, their greatest challenge was finding a reliable application that can effectively process currency exchanges between different blockchains, while maintaining transparency throughout the entire process. ConnectionChain was developed specifically to resolve this issue. Its key feature is a connection-type chain, which was designed to record related transactions in multiple cryptocurrencies on one dedicated blockchain.
This connectivity is made possible by Fujitsu’s smart contract technology which connects several blockchains and records all related transaction on each cryptocurrency chain in a single dedicated connection type chain. This setup effectively links the two cryptocurrencies into a single transaction process, which can then be automatically executed via ConnectionChain. In addition to executing transactions, Fujitsu’s ConnectionChain can also synchronize the timing of transaction process on each chain. This feature helps to ensure the transparency of all transactions, since each transaction process is recorded as part of a train in multiple connecting blockchains, including those that cross several chains. Fujitsu announced that they have successfully tested ConnectionChain in a realistic virtual simulation. The system managed to record the entire transaction trial in a connecting blockchain. Despite the technology’s success, however, ConnectionChain’s commercialization won’t take place until 2018.
For now, Fujitsu hopes that their new payment technology will help change the way cryptocurrency is traded in Japan and in other parts of the world.