MUFG Shuts Blockchain Payments Network within a Year of Launch

Japan’s largest lender, Mitsubishi UFJ Financial Group (MUFG) announced on Tuesday the decision to shut down the blockchain-based online payments network, Global Open Network Japan that was developed in collaboration with Akamai Technologies.

The bank has already started the preparation of the stuttering and cited a tough environment in the payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term space behind the move. “Slow growth of payment transaction numbers caused by the impact of the COVID-19 pandemic and other factors, made it difficult to develop its business on the scale originally anticipated,” the official press release stated.

Death of an Ambitious Project

MUFG and Akamai first announced their plans to form a joint venture in 2019 for the development of a blockchain payments system. However, the project faced delays before its launch in April 2021.

The Japanese bank owned 80 percent of the joint venture, and the rest was with Akamai.

One of the primary goals of the project was to provide a platform with high scalability Scalability Scalability is a term that describes the constraints of a network via hash rates to meet increased demand. In the context of Bitcoin, scalability reflects the issue in which a limited rate can process transactions adequately.Blocks within the Bitcoin blockchain are limited in both size and frequency. The overall transaction processing capacity of the network is dictated by the average block creation time of 10 minutes as well as a block size limit of 1 megabyte. Consequently, this leads to pain Scalability is a term that describes the constraints of a network via hash rates to meet increased demand. In the context of Bitcoin, scalability reflects the issue in which a limited rate can process transactions adequately.Blocks within the Bitcoin blockchain are limited in both size and frequency. The overall transaction processing capacity of the network is dictated by the average block creation time of 10 minutes as well as a block size limit of 1 megabyte. Consequently, this leads to pain Read this Term and multi-connectivity data processing to meet the rising demand for the Internet of Things (IoT). In the shutdown notice, the bank pointed out that it struggled to fit its solution with the IoT growing market needs.

The joint venture, GO-NET Japan, is now coordinating with its clients and partners, and will eventually close all operations and then start the liquidation process. However, the Japanese bank highlighted that the shutdown of the project will not impact its financial results in the ongoing financial year.

Despite the shuttering of the project, MUFG is still bullish with plans of its other digital strategies and is discussing further collaboration with Akamai.

“MUFG is discussing further opportunities of collaboration with Akamai and seeking to drive momentum in open innovation through alliances with global business partners and by utilizing the latest technologies based on experience from the GO-NET project,” the lender added.