The founders of Domus Towers, a San Francisco-based financial startup, promise the leading American banks a safe blockchain with more than one million transactions per second.

According to the white paper of the project published this March, the aim of the startup is to create reliable, centralised blockchain for operations on American stock market.

“A technical problem with using a blockchain for this application was that, until now, blockchain implementations did not scale well for high transaction rates. Supporting a high rate of operations is necessary as U.S. stock exchanges intend to support a peak of over 1 Million trades per second now and more in the future.”

Domus Tower developers insist they can reach the ultra-high transaction speed with the help of “permission, trusted-node architecture with eventual consistency,” in other words, centralised blockchain. The white paper quotes the maximum test speed shown by Domus blockchain as 1.24 million transactions per second.

The technical ability to achieve the needed rate of operations using common blockchain architecture is provided by a specific compression of data blocks and simplified model of transaction confirmation. Another difference from classic blockchain models is the so-called “double balance”.

“The Domus Blockchain records a double-entry balance sheet that tracks credits and debits,” says the document.

According to CoinDesk, Domus Towers unveiled the new project at a recent meeting with a group of potential investors attended by representatives of 40 leading banks, accounting companies and journalists. The company seeks to form a consortium with five members: “an accounting firm, a custodian, an investment manager, a broker-dealer, and a stock exchange.” The consortium is expected to gather $25 million from the companies that would invest their money in exchange for a privileged access to the new technology for the initial period of two years. Over this time, Domus Towers plans to accomplish the development of an industry-level product.

Roman Korizky