Nigeria Central Bank Has Selected Open-source Blockchain Technology To Conduct A Digital Currency Pilot
Nigeria's Central Bank has selected Open-source blockchain technology to conduct a digital currency pilot on October 1, 2021
The Central Bank of Nigeria (CBN) has announced that the pilot scheme for its digital currency will be launched on October 1, 2021, with the full scheme to follow on October 1, 2022.
Apparently, CBN made this announcement during a private webinar with stakeholders on Thursday, July 22, 2021, according to TheCable.
Prior to that, on June 10, 2021, the apex bank announced it would launch a pilot scheme for its digital currency before the end of the year.
“Before the end of the year, the Central Bank will make a special announcement and may launch a pilot scheme in order to be able to provide this type of currency to the populace,” said Rakiya Mohammed, Director of Information Technology at the Central Bank of Nigeria.
GIANT, according to the Director, will be built on the Hyperledger Fabric Blockchain, which he described as "a game changer."
Hyperledger Fabric Blockchain
The Hyperledger Fabric blockchain network is a private and permissioned blockchain network developed by the computer hardware company International Business Machines Corporation. It was launched in July 2014. (IBM). The network is an open-source platform developed by the Linus foundation, which means that it was built with the help of a number of developers.
It is designed specifically for enterprise-level applications, which is why the blockchain network was created. The use of this method is recommended for businesses or private entities wishing to keep transactions confidential.
Because it is a private network, the CBN has the authority to determine who has access to the platform. In contrast to bitcoin, where transactions are approved based on the agreement of a majority of nodes, the regulator can approve or override a transaction if it deems it necessary.
Several critics have claimed that the Hyperledger Fabric is not even a blockchain network, and that less expensive solutions are available that provide the same level of security.
According to a Cointelegraph article published on July 2, 2019, Stuart Popejoy, blockchain expert and founder of hybrid blockchain platform, Kedena, stated that “Fabric's architecture is far more complex than any other blockchain platform, while also being less secure against tampering and attacks.” Fabric is a blockchain platform that allows users to create and store digital assets. You'd think that a "private" blockchain would at the very least provide scalability and performance, but Fabric falls short in both of these areas as well. Simply put, pilots built on Fabric will be confronted with a complex and insecure deployment that will not be able to scale in tandem with their companies.”
Blockchain, on the other hand, he claims, is a decentralised and immutable platform where truth is enforced through the use of a consensus mechanism. A consensus is reached on a network such as Bitcoin or Ethereum through the process of mining, also known as Proof of Work (PoW).
On the other hand, IBM claims that access to the network is restricted to authorized and well-known participants. Aside from that, it includes hardware security module support, which is essential for protecting and managing sensitive data.
Meanwhile, the Central Bank of Nigeria (CBN) has stated that Nigeria cannot be left behind in a world where 80 percent of central banks are considering issuing a central bank digital currency (CBDC).
According to Coin Insider, China was the pioneer of the CBDC movement, and other countries such as Sweden, Japan, and the Bahamas are currently experimenting with their own digital currencies.
