Research co-authored by scientists in the division of Novi – Facebook’s Digital Wallet – proposes a money transfer system called FastPay.
Facebook claims its system can be used for cryptocurrency payments or as an infrastructure to support retail fiat payments.
In the trials, the team was able to achieve confirmation within the continent with less than 100 milliseconds and more than 80,000 transactions per second with up to 20 different payment authorities.
While blockchain technology promises to enable applications such as personal wallets and private transactions, its open and distributed nature has come with a high performance cost and questionable scalability.
The BIS cited ambiguity regarding the end of the settlement as one of the major barriers to blockchain adoption.
The FastPay system solves this problem by enabling authorities to jointly maintain account balances and settle previously funded retail payments between accounts.
The system supports confirmation of latency of less than 1 second for physical POS payments while providing capacity comparable to maximum retail card network volumes and real-time overall settlement.
“The FastPay system eliminates credit risk and eliminates the need for intermediary banks and the complex financial contracts between them to absorb this risk,” the co-authors wrote, “FastPay can absorb random capabilities through effective retail structures in every authority.”
The researchers say that building the FastPay Execution Test via AWS required about two months of work for three engineers, with a server including 96 virtual processors via Intel Xeon Platinum 8175 and 384GB of memory.
FastPay supports up to 160,000 transactions per second under a combined payload of 1.5 million transactions – nearly seven times the highest transaction rate for the Visa payments network.
FastPay was effective in testing latency during transfer and confirmation orders, with the response time being less than 200 milliseconds for a customer on the US West Coast and about 50 milliseconds for a single customer in the UK.
A Facebook spokesperson said: FastPay is a beta research into the payments protocol.
FastPay can be used as a side chain for any cryptocurrency with reasonable guarantees and adequate programming ability, the researchers write.
They said: The performance and strength of FastPay exceed and surpass the latest in science, and confirm that moving away from central solutions has great advantages.