Dutch Central Bank Tests Bitcoin Blockchain

Dutch Central Bank Tests Bitcoin Blockchain

Dutch Central bank presented the results of their digital currencies tests whose goal was to better understand the Bitcoin blockchain to adopt it within the main bank institutions.
After this test conducted in 2015 by De Nederlandsche Bank (DNB), the bank presented the results earlier this month.
On 20th June Ron Berndsen, head of the bank’s market infrastructure policy department, explained to Coindesk:
“The general idea was that by adapting the Bitcoin software ourselves we could learn deeper how an actual implementation of the blockchain really works than if we would only perform desk research and go to conferences such as these, no matter how interesting.”

Dutch Central Bank test number one

To do the first test the DNB created a working group who acts as fictional participants in the digital currency world, as they want to replicate how the bitcoin environment seemed in the first two months of its existence.

Also, they sent each other several coins, testing the process.

DNB Second test

“The second DNBcoin prototype takes the other extreme of bitcoin by jumping to the year 2140, the year when the last fraction of the 21 million bitcoins will be issued,” said Berndsen.

For this second test, the team mined all of the DNBcoins in advance, beginning with a block reward of 1 billion of DNBcoins.

“In doing so we were able to generate 3 billion DNBcoins in 30 seconds. In addition, we observed that after all DNBcoins had been generated, blocks could still be mined and added to the blockchain. The reward was reduced to zero but transaction fees were still collected by the miner who finds the next block.”

Blockchain central bank adoption

Central banks are increasing their interest in the blockchain.

Recently, in fact, we talked about several central banks who studied, tested and adopted the blockchain.

For example, you may be interested in the news related to the Central Bank of Canada that revealed its new digital currency called Cadcoin.

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