Blockchain technology isn't a beneficial addition to the payment system in the Netherlands – at least not yet, according to the country's central bank.
In a blog post published Thursday, De Nederlandsche Bank (DNB) came to the conclusion that distributed ledger technology (DLT) is not suitable for its existing financial payment infrastructure due to its insufficient ability to scale for large volumes of transactions and other issues.
The DNB offered the opinion based on the results of a project called Dukaton, which conducted a series of experiments that has tested four DLT prototypes over the past three years.
Dukaton set out to conduct research in a bid to understand how much value the nascent technology can bring to the country's existing payment system. Basing its first prototype on the source code of the bitcoin blockchain, the team applied different consensus algorithms and validation mechanisms in later stages.