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Italian Banking Industry Chose Decentralization Over Centralization

In a current panel, as a part of a digital Unitize blockchain convention, ABI chief innovation officer Silvia Attanasio defined why the banking entity selected to go the decentralized blockchain route for Spunta — its blockchain answer constructed on enterprise blockchain platform Corda. 

If ABI had gone the decentralized route, the entity would have wanted to find a centralized get together to assemble and handle a considerable amount of knowledge on varied fronts, Attanasio stated on the July eight panel, noting ABI’s rationale behind selecting a decentralized strategy.

“It wasn’t so easy to identify a single actor that could have run the centralized solution,” she stated. 

Spunta is a approach to switch info

The Associazione Bancaria Italiana, or ABI — also called the Italian Banking Association, operates as a central hub on behalf of Italy’s banks, Attanasio stated. The entity determined to transition right into a blockchain-based format known as Spunta. 

“Spunta is a reconciliation process based on bilateral account,” Attanasio defined, noting the system as a technique of operation behind the scenes. “It is about an exchange of information rather than an exchange of value,” she added.

The ABI unveiled the blockchain-based idea in June 2019, pointing to a March 2020 launch date. The system, generally known as Spunta, primarily enhances processes round settlement and dealings between banks.

Beginning with 32 banks, the ABI initiated its transition over to Spunta on March 1, Attanasio detailed. “I’m particularly proud, especially as an Italian, that we set this date, I think in March 2019, and we were so punctual,” she stated. “We didn’t have one single day of delay,” she famous. ABI has additionally added extra banks since March. 

“By October 1, the old process will be dismissed and the old rules will be cancelled,” she stated. 

Spunta’s decentralized strategy adjustments the outdated format 

“We wanted to transform the process, to reshape the process, in order to include some key component of the distributed paradigm, and this was made possible with the distributed solution,” Attanasio stated. This, versus a centralized format requiring every financial institution to carry its knowledge, transferring that knowledge to a single centralized database occasionally. 

ABI did, nevertheless, select a permissioned blockchain construction, as an alternative of a permissionless one that enables participation from anybody. The selection stemmed from the entity’s place within the banking sector and the significance of trusting particular events with info, Attanasio defined. 

Over the previous few years, plenty of different mainstream entities worldwide have acknowledged blockchain’s potential, exploring varied options with the expertise, together with Walmart, JPMorgan Chase financial institution and a number of others. 

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