Minima, a layer-1 blockchain focused on decentralized physical infrastructure network (DePIN) solutions, has partnered with Mercury FX, a global currency settlement solution, to develop an alternative to SWIFT, the world’s largest payment messaging network.
According to a July 24 statement shared with CryptoSlate, the proof of concept leverages Maxima, Minima’s information transport layer protocol that allows users to exchange information by performing small amounts of work from their devices, known as transaction proof of work (TxPoW).
The company said Maxima ensures that messages are encrypted so that only the recipient can read them, a method it claims increases the security of the system by increasing the number of hash functions.
Why Maxima?
According to the statement, the global financial system needs innovative alternatives to SWIFT as traditional financial infrastructure faces several challenges, including high operational costs, slow processing speeds, and vulnerability to cyber attacks.
However, Maxima’s ability to encrypt messages with the recipient’s public key allows for faster transaction times, lower latency, and increased security. Additionally, the fully decentralized nature of the system further enhances its security.
The collaboration therefore aims to establish a new standard for global financial communications by addressing SWIFT’s vulnerabilities and improving the overall security, efficiency and compliance in international payments.
Minima CEO Hugo Filer said the partnership between the two companies could lead to a paradigm shift in cross-border money transfers.
“We are at a critical crossroads in the evolution of financial technology. This trial is intended not only to prove Maxima’s technical capabilities, but also to set a new standard for global financial communications in terms of security, efficiency, speed, cost and compliance.”
This view was backed up by Alastair Constance, CEO of Mercury Global, who said:
“By leveraging Maxima in our payments system, we expect to improve efficiency, reduce costs, speed up transactions and exponentially increase the amount of data transmitted with each payment.”
The companies say feedback from the pilot will be crucial in refining and expanding Maxima’s use in global financial messaging.
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