CenterPrime, a company which establishes ‘Seyfert’ fintech private chain system, and PayGate, a global fintech platform company, have signed a memorandum of understanding for mutual cooperation.
PayGate is a company with 23 years of experience that provides payment services to more than 3,000 clients companies in Korea, USA, Hong Kong, UK, Singapore, Australia, Luxembourg and Japan. In addition, PayGate supports services such as electronic payment as well as foreign currency remittance and security authentication solution. Their major services include electronic payment service, B2B payment platform, foreign currency remittance service, and P2P financial solution.
CenterPrime signed a MOU with PayGate for the following four reasons.
1. Fintech and Blockchain Convergence
Blockchain technology is a core technology which is used for building a hybrid network that converges and connects heterogeneous industries like fintech. Smooth data exchange along with standardization are required for this. CenterPrime will help connect PayGate to fintech and blockchain technology, creating a foundation for the convergence and growth of two rapidly growing industries.
2. Private Chaining of Open Banking
Open Banking, a system that electronically shares users’ financial information through APIs under pre-approved conditions, is an efficient and effective system that provides open access to consumer financial data to various financial institutions and service providers. Although it is a system that has already been adopted as a national policy in various countries and is being studied and implemented, open banking is inherently risky. It does have various scalability because it secures financial convenience, though through the process of granting public access, a malicious third party can illegally use the customer’s financial data, which can cause problems.
One could say, there is a security problem. However, if open banking is made into a private chain, this problem can be solved. By layering distributed ledger technology on top of legacy banking APIs through a blockchain private chain, we create a new digital financial ecosystem, creating an environment where third parties can securely interact with bank and financial institution data without direct access to the core banking system.
As a result, financial institutions will be able to transact safely and trust the platform, and strong synergies will occur through collaboration with various companies.
3. On-chaining that connects public chains and open banking private chains
Public chains are already a familiar ecosystem. As a chain structure that anyone can read and anyone can participate in the network, it is known as Bitcoin and Ethereum. However, public chains are not rational to build and operate real systems. The reasons are security concerns and processing speed. In particular, the processing speed of the public chain is 7–20 TPS on average, so it is not practically efficient to build open banking, a really huge system, as a public chain. However, on average, private chains have a processing speed of about 500 times higher than that of public chains. Also, only authorized institutions can create and verify transactions on the chain.
In other words, in the case of open banking, it is a reasonable choice to build with a private chain. However, the connection and convergence with the platform formed by the public chain are essential demands of the times. By connecting them, CenterPrime will build a hybrid blockchain that can have the advantages of scalability and liquidity through smart contracts running on the public chain, while restricting confidential data and transactions of limited institutions through the private chain.
4. Blockchain wallet DID through Fintech
Distributed Identity Authentication (DID) service is one of the technologies that are currently attracting attention. It is a technology that can be authenticated through simple verification without inconvenient processes during financial transactions. CenterPrime will provide users with efficient and convenient financial services by combining the wallet DID service with fintech through a public key infrastructure (PKI).
Through this MOU, CenterPrime will present standards for future major industry expansion and standardization through the convergence of fintech and block chain technology and will lay the foundation for convergence among various industries such as finance, manufacturing, service, and accounting. Through this, we will build a single node that builds the Oracle DeFi ecosystem by expanding technical and business utilization and mutual understanding of system developers, users, and operators.
The CenterPrime project uses a hyperledger private chain to share an open banking API to apps, connecting centralized finance to decentralized finance. Also making smart pairing data for loan, remittance, exchange, payment, and exchange rate information possible to be included in fintech oracle networks.