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Federal Reserve’s Commentary on blockchain technologies | Distributed Ledger Technology (DLT) Arrangements

English: The north face of the Marriner S. Ecc...
English: The north face of the Marriner S. Eccles Federal Reserve Board Building (commonly known as the Eccles Building or Federal Reserve Building), located on the 2000 block of C Street, N.W., in the Foggy Bottom neighborhood of Washington, D.C. (Photo credit: Wikipedia)

The U.S. Payment, Clearing and Settlement (PCS) systems process approximately 600 million transactions per day, valued at over $12.6 trillion according to “Distributed ledger technology in payments, clearing, and settlement” published by Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs, Federal Reserve Board, Washington, D.C.

This document analyzes the potential for disruption of the current PCS industry by Distributed Ledger Technology systems like bitcoin’s blockchain. The analysis touches on the limitations of the consensus governance model in the blockchain.

As bitcoin transaction delays increase, the limitations of the blockhain implementation of the consensus model will become more evident.

About Kirk Tramble

Professional Services ● Technology Leader ● Consultant Software and Energy Industries

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