Minima, a fully decentralized and device-agnostic Layer 1 blockchain platform, has teamed up with Mercury FX, a global currency payment solution provider, to develop an innovative alternative to SWIFT, the world’s largest payments messaging network.
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This partnership aims to pilot a groundbreaking proof of concept that leverages Minima’s information transport layer protocol, Maxima. Maxima enables secure and decentralized information exchange by requiring devices to perform a small amount of work, known as Transaction Proof of Work (TxPoW).
Utilizing Maxima’s peer-to-peer (P2P) network, messages are encrypted and can only be deciphered by the intended recipient. This is achieved by encrypting the messages with the recipient’s public key, significantly enhancing the security of both the blockchain and the Mercury platform by increasing the number of hash functions involved.
Challenges with SWIFT
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a global network used by financial institutions to send payment orders, which are settled through correspondent accounts between institutions. Despite its extensive use, SWIFT faces several challenges, including high operational costs, slow processing speeds, and vulnerabilities to cyber-attacks.
Notably, a major breach occurred a few years ago when attackers stole $81 million from the Bangladesh central bank. Although SWIFT has since implemented updates and security enhancements, its nature as a single point of failure continues to present risks.
Maxima’s Advantages
Maxima’s real-time, rich messaging capabilities promise faster transaction times, reduced latency, and enhanced security. By encrypting messages with the recipient’s public key and maintaining a fully decentralized nature, Maxima addresses SWIFT’s inherent vulnerabilities and sets a new standard for global financial communications.
Hugo Feiler, CEO of Minima, emphasized the significance of this collaboration: “We are at a critical juncture in the evolution of financial technologies.”
“This trial is not just about proving the technological capabilities of Maxima but setting a new standard for global financial communications in terms of security, efficiency, speed, cost, and compliance. Our partnership with Mercury Global could lead to a paradigm shift in how money moves across borders, offering more security and transparency than ever before.”
Hugo Feiler, CEO of Minima
Alastair Constance, CEO of Mercury Global, echoed these sentiments, stating, “By leveraging Maxima in our payment systems, we anticipate improved efficiency, reduced costs, and quicker transactions. Additionally, we expect a quantum leap in the amount of data that can travel with a payment, enhancing compliance with existing and future legislation regarding sender and receiver identity in cross-border payments. This will also provide more data to identify and prevent fraudulent transactions.”
Future Prospects
The feedback from this trial will be crucial in refining and expanding the use of Maxima for global financial messaging and incorporating it into more Mercury FX payment corridors. This collaboration underscores Minima’s role in enhancing blockchain usability within the financial system and paves the way for the future of decentralized financial messaging. The ultimate goal is to create a more secure, efficient, and cost-effective global financial landscape.
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About Minima
Minima is a real-world blockchain focused on everyday solutions through device-led infrastructure. It is a unique Layer 1 blockchain, distinguished by its lightweight architecture, which allows a full node (capable of constructing and validating transactions) to run on any mobile or IoT device.
This adaptability makes Minima exceptionally suited for scaling Decentralized Physical Infrastructure Networks (DePIN). Minima’s technology is supported by an expansive and engaged community of over 50,000+ node operators, making it one of the largest networks in the DePIN space. Minima is committed to empowering users and developers to innovate and secure digital solutions in a decentralized world. Learn more at minima.global.
About Mercury Global
Mercury Global is a leader in international payments and foreign exchange, known for its rapid processing and cutting-edge technology. Mercury has a history of pushing the technological boundaries of cross-border hybrid (FIAT-blockchain) payments within regulated spaces. In 2017, Mercury partnered with Luno in an FCA sandbox to test Bitcoin-FIAT payments between South Africa and the UK. Between 2019 and 2021, Mercury became the first regulated firm to successfully make XRP-FIAT payments to Mexico and the Philippines.
This regulatory sandbox was conducted in partnership with Ripple Technology Labs Inc and VALR within the Inter-Governmental Finance Working Group (IFWG) sandbox, testing the regulatory compatibility of XRP-FIAT payments into and out of South Africa. Mercury Global remains committed to delivering innovative and efficient financial solutions that are fit for the future. Visit us at mercury.global.
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