Netherlands concludes blockchain not ready yet

It argues that the open ledger technology has a number of negative issues such as the need for high levels of energy to function and not enough certainty for the verification of transactions.

The central bank experimented with Dukaton, a blockchain prototype based on Bitcoin software. It decentralised the platform onto five laptops, whose users received rewards for creating new Dukatons as well as a transaction fee. A second experiment was based on creating Dukatons using a different method that required less energy. Another test involved a central Dukaton based on a self-built wallet that did not use the Bitcoin software.

Different configurations were tested as well as different algorithms to approve transactions following consensus, but blockchain failed to meet standards of efficiency, safety, reliability authorization, availability, resilience, payment finality, scalability, cost, capacity and sustainability.

The European Union currently uses a system dubbed Target2, which according to the DNB does meet the requirements of the EU’s financial markets infrastructure. The central bank does, however, conclude that it finds blockchain technology to be promising.