Creation of private blockchains becomes possible with Mijin, a project of Osaka-based Tech Bureau. Being a founder of the Japanese Bitcoin Exchange Zaif, Tech Bureau has come up with a low-cost solution which will allow financial organizations to drastically reduce infrastructure costs.
Masakazu Masujima, a legal advisor to Tech Bureau from Mori Hamada & Matsumoto Legal Office, speaks about bitcoin’s underlying technology: “A key difference compared to Bitcoin is that Mijin will allow private blockchains. This is profoundly interesting because of the potential to completely change financial, logistics, and governance systems.”
At start Mijin promises a capacity of up to 25 tx/sec by the end of 2015 while the approximate level will reach 100 tx/sec in only one year. The capacity within private networks will make up several thousand tx/sec which is equal to credit card processing. The only significant difference is really low infrastructure costs.
Private blockchains offered by Mijin are designed to increase performance and security level but not at the expense of cost rise. Takao Asayama, CEO at Tech Bureau, revealed expected results: “If a Mijin blockchain is used, security can increase and at the same time the need for redundant, durable, and explicitly backed-up systems, will be removed. Our mission is to allow financial institutions to reduce infrastructure costs to 10% of the current costs by the end of 2018.”
It’s interesting to hear the opinion about private blockchains from the founder of Ethereum and co-founder of Bitcoin Magazine Vitalik Buterin. He underlines that although private blockchains do have some obvious advantages (cheaper transactions, possibility to revert or change transactions among the most significant ones), it’s not that evident. “Even in an institutional context, public blockchains still have a lot of value, and in fact this value lies to a substantial degree in the philosophical virtues that advocates of public blockchains have been promoting all along, among the chief of which are freedom, neutrality and openness.”
The idea of blockchain has already left the limits of bitcoin itself. Overall interest in the technology observed recently can result in significant modification of current financial system.
Many world’s famous banks and institutions revealed their interest in blockchain technology. Nevertheless a spokeswoman for BNP Paribas, France’s biggest bank and financial services company, mentioned that all plans are still on developing stage.
Arjan van Os, Head of Innovation Centre at Dutch bank ABN AMRO, called blockchain “the next big thing” and enumerated the list of important benefits. The news has recently leaked out that nine of world’s leading banks, including JP Morgan, Goldman Sachs and Barclays, might integrate blockchain in the near future. They have already started testing the system.