A company behind an operating system that would offer the world's 1st regulated blockchain has submitted a proposal to the Bank of England. Over the last year, the Bank of England and various sovereign entities have expressed interest in regulated blockchain technologies. What exactly would this operating system do?
Regulated Blockchain Operating System
L3COS is the company behind the proposed regulated blockchain. According to a recent press release, the company believes that the Bank of England could leverage their operating system to regulate digital economies. If the Bank of England were to affiliate themselves with L3COS, they could essentially build out fully regulated financial infrastructure that is built around blockchain technologies. In doing so, the bank could have the necessary resources to enter a new digital economy. The triple layer consensus platform offered by L3COS is said to be immutable, auditable, traceable, and transparent. In addition, the blockchain company believes their infrastructure eliminates the potential threats of money laundering and other fraudulent activities.
In the press release, the CEO of L3COS stated that:
"Blockchain is a tried and tested technology, with over 40% of S&P 500 companies using it to increase efficiencies and reduce costs. Now central banks and governments are looking at how this technology can work for them.”
"We believe that L3COS's unique triple-layer consensus technology is potentially transformative for digitalised economies, empowering governments for the first time to regulate digital economies while providing security and legitimacy to transactions."
Bank of England On Central Bank Digital Currency
The proposal by L3COS was initiated after the Bank of England released a paper titled “Central Bank Digital Currency: opportunities, challenges, and design” in March of this year. In the paper, the Bank envisions a future where we have a newly digitized economy. With this being said, they’ve been entertaining the ideas around issuing a Central Bank Digital Currency ( CBDC ).
The Bank believes that a CBDC could: “support a more resilient payments landscape. It also has the potential to allow households and businesses to make fast, efficient and reliable payments, and to benefit from an innovative, competitive and inclusive payment system.”
Despite the fact that the Bank hasn’t made a decision yet on a CBDC, the purpose of the paper was to evaluate the overall benefits of a CBDC. Additionally, the consultation paper asked for feedback and ideas from the public which seemed to spark the proposal from L3COS.
Working With Governments
With over 1,200 developers working on the level 3 consensus operating system (L3COS), the company wants to help governments through various avenues. They believe that the operating system is fully prepared to serve central banks and other government entities with unmatched efficiency. The operating system could help the government in various areas such as:
- Compliance - abolishing intermediates and working alongside regulators in a direct manner
- Elections - capitalizing on the inefficiencies in current voting infrastructures
- Benefit Distributions - specifically focusing on cost reductions and enhanced efficiency
- Law Enforcement - communication between agencies
- Taxation - cost reductions and elimination of administrative burdens
- Government Borrowing - monetizing the issuance of bonds
- Record Keeping - digitizing record keeping and focusing on other aspects such as immutability
- Health Care - data interoperability
About The CEO
Zurab Ashvil has worked with 1,200+ developers on L3COS. Working with the financial industry isn’t anything new to Zurab as he spent 10+ years working with Softbank. During his time at Softbank, the tech visionary won awards from some of the largest companies in the world such as Microsoft and Dell. Additionally, Zurab was advising for Windows 2000, specifically focusing on distributed file system designs.
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