Baku, Azerbaijan, Dec. 29
By Azad Hasanli – Trend:
The Central Bank of Azerbaijan (CBA) will create a digital identification system for relations between banks and customers based on blockchain technology, according to the CBA’s statement on the main directions of the monetary policy for 2018 and the medium-term period, published in ‘Azerbaijan’ newspaper Dec. 29.
The CBA is actively studying blockchain technology and will implement a pilot project based on this technology.
At the same time, the CBA will continue to expand non-cash payments. The implementation of the corresponding program prepared by the CBA will greatly increase the use of modern payment infrastructure.
Blockchain technology is a way of storing data or a digital register of transactions, contracts. Its main difference and advantage is that this registry is not stored in one place, but it is distributed among several thousand computers worldwide.
The working principle of the blockchain technology is quite simple. Digital records are combined into "blocks", which are then cryptographically and chronologically linked into a "chain" using complex mathematical algorithms. Each block is associated with the previous one and contains a set of records. New blocks are always added to the end of the chain.