Minima, a fully decentralized and device-independent Layer 1 blockchain platform, has collaborated with Mercury FX, a global provider of currency payment solutions, to develop an innovative alternative to SWIFT, the world’s largest payment messaging network.
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This partnership aims to test a breakthrough proof-of-concept using Minima’s information transport layer protocol, Maxima. Maxima enables secure and decentralized information exchange by requiring a small amount of work from devices, known as Transaction Proof of Work (TxPoW).
Using 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 improving 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 transmit payment orders, which are settled through inter-institutional correspondent accounts. 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 Central Bank of Bangladesh. Although SWIFT has since made updates and security improvements, its nature as a single point of bankruptcy continues to pose risks.
Máxima’s benefits
Maxima’s real-time, rich messaging capabilities promise faster transaction times, reduced latency and improved 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 importance of this collaboration: “We are at a crucial moment in the evolution of financial technologies.”
“This trial is not just about proving Maxima’s technological capabilities, but about setting a new standard for global financial communications in the areas of security, efficiency, speed, cost and compliance. Our partnership with Mercury Global could lead to a paradigm shift in the way money moves across borders, providing more security and transparency than ever before.”
Hugo Feiler, CEO of Minima
Alastair Constance, CEO of Mercury Global, echoed these sentiments, saying: “By leveraging Maxima in our payment systems, we expect improved efficiency, lower costs and faster transactions. Furthermore, we expect a huge leap forward in the amount of data that can be transported. with a payment, improving compliance with existing and future legislation regarding the identity of sender and recipient in cross-border payments. This will also provide more data to identify and prevent fraudulent transactions.
Future prospects
Feedback from this pilot will be critical as we refine and expand the use of Maxima for global financial messaging and integrate it into more Mercury FX payment corridors. This collaboration underlines Minima’s role in improving the usability of blockchain 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 via device-driven infrastructure. It is a unique Layer 1 blockchain, distinguished by its lightweight architecture, allowing a full node (capable of constructing and validating transactions) to run on any mobile or IoT device.
This adaptability makes Minima exceptionally suitable for scaling decentralized physical infrastructure networks (DePIN). Minima’s technology is supported by an extensive and committed community of more than 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. More information can be found at minima.global.
About Mercury Global
Mercury Global is a leader in international payments and currencies, known for its fast processing and advanced 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 company to successfully make XRP-FIAT payments to Mexico and the Philippines.
This regulatory sandbox was conducted in collaboration with Ripple Technology Labs Inc and VALR within the Inter-Governmental Finance Working Group (IFWG) sandbox, testing the regulatory compatibility of XRP-FIAT payments to and from South Africa. Mercury Global remains committed to delivering innovative and efficient financial solutions that are fit for the future. Visit us at mercury.global.