Taiwanese private bank Taipei Fubon Commercial Bank became the first bank in the country which launches a payment system based on a blockchain technology.

With its system customer can pay in restaurants and shops located near the National University of Chengchi. The bank and university cooperates in the field of “development of key technologies and engineering research for a payment based on the blockchain.”

The payment application based on Ethereum implements the BFT (Byzantine fault tolerance) algorithm, which reduces the time and cost of transactions. According to the bank, the use of this algorithm shortened the payment time to less than one second.

In addition, the system provides a more efficient method of recording transaction data. Each transaction is instantly encrypted and written to the blockchain and the seller can get quick access to complete information about the transactions that have been performed.

According to Taipei Fubon Commercial Bank, for two weeks that have passed since the launch, the volume of transactions in the area near the university increased four times.