DNB to Explore Applications of IOTA’s Tangle Technology

It is exciting waking up each day to positive news on how a major brand or government is trying to implement blockchain solutions. From governments testing blockchain solutions in election processes, to transport and logistic giants like Maersk implementing the tech in maritime insurance, we can only but sit back and wait for what the future holds. Several cryptocurrency projects have been on the news lately, and this time it is IOTA.

IOTA which runs on a tangle system and promises infinite scalability has been on the news for both good and bad reasons. However, they are on the news for a good reason this time. Norway’s largest bank, Den Norske Bank (DNB ASA) has signed a memorandum of understanding (MOU) with the IOTA Foundation. According to a press release dated May 31, both companies will be cooperating to explore applications of the IOTA Tangle, which has been dubbed the “third-generation” of distributed ledger (DLT).

Both organizations are to work together in finding new applications and business models across their respective industries. The bank will be working closely with the foundation to better understand the technology and see how they can apply it in the banking industry. Head of DLT at DNB, Lasse Meholm, commented that:

“Among other things, the technology is designed to handle hundreds of thousands of microtransactions per second. We will not let go of the market associated with this ecosystem that arises around these transactions.”

David Sonstebo who is one of the founders of IOTA is positive about the outcome of the MoU. He said:

“I hope and believe it. The IOTA Foundation will contribute to separating useless crypto-projects from the serious ones.”

Considering the fact that earlier in May, one of the crypto exchanges (Bitmynt AS) in the country lost its case against the Nordea Bank for closing its account, this is a step in the right direction. And this may open the doors of other banks in the country towards accepting blockchain innovations.

According to local news 24, this is not the first time DND ASA will be working on blockchain solutions. They have been researching the tech through the R3 consortium, and have several ongoing projects with Hyperledger, Ethereum, and EOS, amongst others.

As at the time of writing this news, IOTA appears have increased in price (by 5.43%), despite the fact that other currencies are in a sea of red or low greens.