IT: A Blockchain-Based Lightening Interbank Transaction system

Nnamdi Stanley Adom
Du Zhang
Zoe (Zhiyuan) Lin

ABSTRACT

Interbank transactions make extensive use of Federal Reserve Wire
Network (Fedwire) because they provide real-time wiring. However,
frequent Fedwire transactions force banks to pay for
redundancy. Clearing House Interbank Payment system (CHIPs) mitigates
Fedwire redundancy at the cost of speed.  In this paper, we propose
Lightening Interbank Transaction (LIT) system, an alternative solution
to CHIPs using the blockchain. LIT uses a highly consistent
distributed ledger and a wallet to frequently net bank
transactions. Certified nodes in the network ensure no one bank has
all the net work computation power. Experiments show that our imple-
mentation of this peer-to-peer blockchain-based system has better
performance than existing systems in terms of both efficiency and
monetary implication.