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Three of Australia’s “big four” banks bring bank guarantees on blockchain



Three of the “big four” Australian banks are forming a new company called Lygon to digitize bank guarantees using blockchain technology. 

Bank guarantees are an official contract between a debtor and a financial institution. It ensures the debtor and the debt provider that the debt will be paid on time under all circumstances.

The Australia and New Zealand Banking Group Limited, Commonwealth Bank of Australia and Westpac Banking Corporation along with two other shareholders — the Australian shopping center company Scentre Group and technology behemoth IBM — are forming the company after a successful pilot last year.

The last of Australia’s big four banks, National Australia Bank, also tested the technology last year but pulled out of the project in the wake of the ongoing coronavirus pandemic, the Financial review reported on Sept. 1.

Lygon’s primary focus is to digitize commercial lease guarantees to save commercial landlords the time and cost involved with operational processes while also ensuring the safety of small businesses in the short term, Lygon chairman Nigel Dobson said.

Bank guarantees today are totally paper-based and may take several weeks to prepare and deliver. The five entities backing Lygon aim to use IBM’s Hyperledger technology to digitize bank guarantees and make issuance a one-day process. The firm is planned to go live in September.

Dobson said, “It comes to market at a time when some people have been questioning the value of blockchain but what makes this work for us, and our customers, is that it solves a really big problem.”

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A review of SushiSwap roll-outs




Launched in August 2020 as a fork of the Uniswap decentralized exchange, SushiSwap briefly surpassed its competitor. Now ranking third behind Uniswap’s v3 and v2, the DEX rolls out numerous integrations with major networks beyond its native Ethereum blockchain to offer users a single entry point and lower fees. 

The SushiSwap protocol is one of the largest proponents of a multi-chain future in decentralized finance as the DEX is already live on Ethereum, Binance Smart Chain, Polygon, Avalanche and Fantom. Data by Covalent provides insight on SushiSwap across these five chains.

Data reveals the most popular chain by the number of swaps executed daily is Polygon, as the protocol usage skyrocketed in May. Polygon continues to set new records as it hosted 120,000 swaps on SushiSwap recently.

Left far behind, Ethereum ranked second as of June 2021 by daily swap count. Fantom and Avalanche tend to follow the same trend as Ethereum, although the gaps among the three have been widening since the active trading days in late May. Avalanche and Fantom even outstripped Ethereum by the number of transactions on May 19, when a market-wide liquidation frenzy occurred.

A closer look at daily swap volume shows a different story. The dominance of Ethereum in SushiSwap had been unshakable for a long time, with the peak of trading volume at almost $3 billion on May 21. However, Polygon overtook Ethereum by swap volume in June with a $420-million mark, which highlighted the rapid take-off of the layer-two scalability solutions. 

The reduction of transaction costs is the major driver behind the adoption of a multi-chain approach. SushiSwap has achieved this by offering options outside of Ethereum. Data on gas usage on Ethereum and other chains could not even be compared in one chart due to a dramatic difference in numbers.