Federal Reserve Paper Sparks Speculation on BFT Consensus and Private Cryptocurrencies
The Federal Reserve system has published a paper on a Byzantine Fault Tolerant database system for modern payment infrastructures. Researchers suggest that this technology could enable secure and high-speed financial systems, processing up to 110,000 transactions per second.
Crypto analyst SMQKE linked the findings to digital assets like XRP and XLM, which use a Federated Byzantine Agreement, a variant of BFT consensus. This connection has sparked speculation about potential adoption by institutional players.
However, it's essential to note that the Federal Reserve's FedNow service does not utilize XRP and has no plans to adopt private cryptocurrencies in its payment systems. The paper is a discussion on potential technologies, not an endorsement or implementation plan.