NEM gets nod of approval from major bank

[jabo38]

Japanese SBI Sumishin Net Bank, commissioned NRI, a leading research group in Japan, and together with Dragonfly conducted a test of the NEM blockchain technology. They were testing a version of NEM technology called Mijin.   (Mijin is a private fork of NEM that has some optimizations to make it a private chain). They were testing Mijin with 15 second blocks at over 2 million transactions per day of different kinds spread out over 2.5 million accounts trying to simulate the load a bank might be under.  The transaction load was handled fine.  Then they tried to systematically knock out nodes, and it was still fine.  Then they tried to tamper with transactions and fool the network, and still it was fine.

They concluded that NEM technology was capable of handling the back end of a banking platform and would ultimately bring savings costs and better stability to the banking platform, but they have no further plans to make the switch from current infrastructure to a blockchain like NEM at this time due to the price and logistics of making the switch.  

Here is a link to the article posted by SBI on a private financial news service.  To view the article you must be a member of the Nikkei.  http://itpro.nikkeibp.co.jp/l1/re_nft/?Mr2VlAOeZa2NvjvJlD0USokA8IVR4JxjhnIAVFWBvij6ECIiU612Xr6IjZX9Byl0ppiBi69Qtpve%0D%0ACd3NZLVBAfKl0VjJQg5Rryoe9t%2BEqSwOaVVxaRkm221GuFSsT8GVkA72F%2FJRZqs%3D

And here is a link to a different site (through Google translate) discussing the test and rehashing its results.  https://translate.google.com.au/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fmijin.io%2Fja%2F588.html&edit-text=

And this test started in December and ran for a few months, but since December NEM/Mijin has been under development getting better but only the older version was tested.  

[nembit86]

   this is very significant..... proof that the NEM blockchain is well thought through and is capable of being used in a real working environment....

[K210]

why does a cryptocurrency need approval from a bank?? The purpose of crypto is to compete with banks not help them.

[Xpedite]

why does a cryptocurrency need approval from a bank?? The purpose of crypto is to compete with banks not help them.

And this shows that NEM's technology is able to do just that.
So as a NEM user this confirms that we shouldn't be worried about the network not being able to scale properly!

[freshman777]

Bitcoin and clones can do 2 million transactions per day using 8M blocks, this doesn't make them scalable.

[rockethead]

Bitcoin and clones can do 2 million transactions per day using 8M blocks, this doesn't make them scalable.

Is that all Bitcoin can do? Then Bitcoin is not scalable. The above announcement was only 1/4 of the claimed speed of NEM. They could also chose not to announce what speed they actually tested to. And NEM will scale beyond that claimed speed. Watch that space.

In any case, has Bitcoin done it? They are only doing 3 to 4 Tx/s.

Anyone can claim to "can do". Claiming is one thing, putting the money where the mouth is another.

[jabo38]

Bitcoin and clones can do 2 million transactions per day using 8M blocks, this doesn't make them scalable.

Is that all Bitcoin can do? Then Bitcoin is not scalable. The above announcement was only 1/4 of the claimed speed of NEM. They could also choose not to announce what speed they actually tested to. And NEM will scale beyond that claimed speed. Watch that space.

In any case, have Bitcoin done it? They are only doing 3 to 4 Tx/s.

@freshman777 and is there an article released by a third party that was testing Bitcoin and stressing it at those rates, not just seeing if it could get there in ideal conditions? Because for a blockchain to really make progress as a cryptocurrency and as a blockchain platform, it needs to scale. 

[freshman777]

Bitcoin and clones can do 2 million transactions per day using 8M blocks, this doesn't make them scalable.

Is that all Bitcoin can do? Then Bitcoin is not scalable. The above announcement was only 1/4 of the claimed speed of NEM. They could also choose not to announce what speed they actually tested to. And NEM will scale beyond that claimed speed. Watch that space.

In any case, have Bitcoin done it? They are only doing 3 to 4 Tx/s.

15 second blocks in a truly decentralized network are not realistic, many will be orphaned. Did they test in a private network, intranet? One other problem of scalability is the size of the blockchain, has this problem been solved by NEM? Imagine you pump 2 million transaction per day for 30 days, 180 days, 365 days.

[freshman777]

Bitcoin and clones can do 2 million transactions per day using 8M blocks, this doesn't make them scalable.

Is that all Bitcoin can do? Then Bitcoin is not scalable. The above announcement was only 1/4 of the claimed speed of NEM. They could also choose not to announce what speed they actually tested to. And NEM will scale beyond that claimed speed. Watch that space.

In any case, have Bitcoin done it? They are only doing 3 to 4 Tx/s.

@freshman777 and is there an article released by a third party that was testing Bitcoin and stressing it at those rates, not just seeing if it could get there in ideal conditions? Because for a blockchain to really make progress as a cryptocurrency and as a blockchain platform, it needs to scale. 

Yes, it needs to scale. You haven't proved NEM can scale by showing it can pump 2 million transactions per day. Scalability is much more than that.

[rockethead]

Did they test in a private network, intranet?

Reality is Banks will never use a public network. Yes, sure, it was a private chain.

One other problem of scalability is the size of the blockchain, has this problem been solved by NEM?

Private chains have no problems.

Imagine you pump 2 million transaction per day for 30 days, 180 days, 365 days.

Do you know how machines work, especially with a P2P network? If they can take it, they can take it. The test showed that even if all except one were knocked out, there was no deterioration in performance.

[Xpedite]

Why would those blocks be orphaned?

What is required for scaleability then according to you?

[rockethead]

Bitcoin and clones can do 2 million transactions per day using 8M blocks, this doesn't make them scalable.

Is that all Bitcoin can do? Then Bitcoin is not scalable. The above announcement was only 1/4 of the claimed speed of NEM. They could also choose not to announce what speed they actually tested to. And NEM will scale beyond that claimed speed. Watch that space.

In any case, have Bitcoin done it? They are only doing 3 to 4 Tx/s.

@freshman777 and is there an article released by a third party that was testing Bitcoin and stressing it at those rates, not just seeing if it could get there in ideal conditions? Because for a blockchain to really make progress as a cryptocurrency and as a blockchain platform, it needs to scale.  

Yes, it needs to scale. You haven't proved NEM can scale by showing it can pump 2 million transactions per day. Scalability is much more than that.

The largest Internet Bank in Japan needed 2m Tx/day, a quarter of NEM's claimed throughput. Why would they need 4 times more? In any case, that was NEM's claimed speed, i.e., 8m Tx/day . Of course scalability is "much more than that". We wouldn't talk till we have done it and internal tests have shown that we have achieved 80m Txs/day and still scaling and stabilising, making it consistent.

Banks want to see 2k Tx/s. But the reality is almost all banks don't go beyond 300 Tx/s. They just wanted to have the comfort, which for all intents and purposes, never should be benchmarked. Technology will improve over time and having 2k Tx/s is just some ideal benchmark they want. Visa's Tx was what they are benchmarking against, which is not what we are talking about.

[jabo38]

NEM has a long line of firsts.  

• A new consensus mechanism called POI.
• First ever P2P time sync of nodes. (great for security of the chain)
• First use of the Eigentrust++ as a security clustering algorithm allowing node reputations to be given and shared to their neighbor nodes in clusters, making it very difficult for a node to give false information consistently to the network. (great for security of the network)
• First use of a new kind of transaction spam guard. It targets the specific accounts doing the spamming and raises their transaction fees, while letting the global transaction fee rate stay low. (good for the chain)
• First blockchain with a multisig 2.0 protocol. NEM’s version of multisig doesn’t make new accounts for a multisig address, instead it takes an existing account and makes a contract over it with other accounts. This form of multi-user accounts can make any form of M of N with ease and can also can have the M or the N edited with ease as it is simply just updating the meta data of the blockchain based contract. This form of multisig also has blockchain based notifications so transactions or updates of the M of N are pushed to the wallets as transactions to sign. (great security and ease of use for the user. simply the easiest and most flexible multisig in crypto)
• NEM’s multisig is so easy and flexible to use, it can be used as a foundational tool for DAO’s.
• Mosaics are the most advanced token creation feature in crypto allowing for many advanced 2.0 features.  When creating personalized blockchain based tokens, the mosaic can be created as mutable, immutable, divisible, not divisible, levies, transferable, not transferable, descriptions, and a name as a part of namespaces. (great for businesses)
• Along with mosaics, NEM will also released its new naming service, Namespace, that is also be the most advanced and most integrated naming service of any blockchain. (great for reputation of businesses that build on NEM as all projects can be under an umbrella name or or even sub-domains)

And there is more.....

Messaging, which can be done unencrypted/encrypted/hex. (great for users and programmers)
A light wallet that can easily be adapted by third party devs as it is pure pure JS/HTML/CSS. Any wallet may interact with any node on the network safely.  (great for users. wow!)
Node Rewards supporting Supernodes. (added network strength)
And........ EASY to use universal APIs for just about everything a person can do on NEM. This means it is a great platform for businesses to build their applications on.

15 second blocks in a truly decentralized network are not realistic, many will be orphaned. Did they test in a private network, intranet? One other problem of scalability is the size of the blockchain, has this problem been solved by NEM? Imagine you pump 2 million transaction per day for 30 days, 180 days, 365 days.

Yes, as stated in the OP it was conducted on a private fork.  That said NEM is looking how to scale the right way. It is very important to us.  In fact everything that is built on NEM is built considering "will this scale?", and the recent test is one proof of it.  We look forward to in the future making more announcements about this and hope to add more "firsts" to the NEM list.

[freshman777]

Why would those blocks be orphaned?

What is required for scaleability then according to you?

There is latency in block propagation in a truly decentralized network on the public internet. The latency will grow larger with bigger blocks. Blocks are in competition to be added to the blockchain based on the cumulative difficulty. A staking node can produce a block with a higher difficulty before a block from another node is propagated towards it and will orphan the competing block. This is less of a problem when blocks are smaller. In the private 10 Gb/s intranet the latency between the staking nodes is negligible, transaction throughout can be very high.

What you do with the blockchain size is not related to the above, is another big scalability problem.

[jabo38]

Why would those blocks be orphaned?

What is required for scaleability then according to you?

There is latency in block propagation in a truly decentralized network on the public internet. The latency will grow larger with bigger blocks. Blocks are in competition to be added to the blockchain based on the cumulative difficulty. A staking node can produce a block with a higher difficulty before a block from another node is propagated towards it and will orphan the competing block. This is less of a problem when blocks are smaller. In the private 10 Gb/s intranet the latency between the staking nodes is negligible, transaction throughout can be very high.

What you do with the blockchain size is not related to the above, is another big scalability problem.

The test wanted to simulate realistic conditions, not a lab setting or intranet.  The nodes were geographically separated.  

[rockethead]

Why would those blocks be orphaned?

What is required for scaleability then according to you?

There is latency in block propagation in a truly decentralized network on the public internet. The latency will grow larger with bigger blocks. Blocks are in competition to be added to the blockchain based on the cumulative difficulty. A staking node can produce a block with a higher difficulty before a block from another node is propagated towards it and will orphan the competing block. This is less of a problem when blocks are smaller. In the private 10 Gb/s intranet the latency between the staking nodes is negligible, transaction throughout can be very high.

What you do with the blockchain size is not related to the above, is another big scalability problem.

The dev team has done a lot of research on the latency and is well aware of them when they designed the solution in the beginning. We have overcome "cumulative difficulty" in our solution. Do note that we have taken a lot of things into consideration when working on this. Your problems stated are block chain problems of yore. We had the benefit of understanding those problems when we started off with block chain 2.0.

Sometimes, it is good to look at things from outside the confines and constraints of the current problem and one will see it in a different light.

Do note that you are speaking in context to "in a truly decentralized network on the public internet.". This whole topic is about a private block chain. So, we need to be on the same page.

[I am the guy]

NEM Technology was stress tested under bank conditions and received positive review. Nice. That's no small feat. Good job NEM devs and team. This definitely a testament not only for NEM's tech/team but all of crypto.

[x13]

Wow, this is a really great news. I am happy that I bought a good stack before the price jumped up to 350 Sats. I believe in this project. We will surely see a better adoption in real companies when all the great planned feature were implemented into the NEM software. We are still at 0.6.x version. Much space to rise!

[jabo38]

Yes. NEM has a team of committed devs working hard each day. There will be more improvements on the way to version 1.0.

[lanmao]

Like NXT, a lot of good news in early stages of development , but now?
Hope the dev team keep working