SinoPac Financial Holdings has signed a Memorandum of Understanding with the IOTA Foundation for the purpose of partnering to research and implement new possibilities and innovations that will open up to the financial sector using IOTA Tangle technology.
The collaboration, which IOTA Foundation Head of Partnerships, Holger Köther announced in a blog post on the IOTA website comes into effect immediately. According to information from SinoPac, the joint effort aims to promote the financial applications of blockchains and to demonstrate the innovation value of the new generation of financial industry, as well as to implement corporate social responsibility.
What’s in it for SinoPac?
SinoPac is one of Asia’s largest financial holding companies operating from its headquarters in Taiwan. Since its formation in 2002, its holdings have expanded to cover a range of financial activities including banking, securities, investment trusts, call center, insurance broking, leasing, and venture capital.
As it is almost universally recognized that the future of the financial industry lies – at least to some extent – in blockchain technology, SinoPac has been involved in exploring the potential impact of blockchains and distributed ledger technologies in its business processes. To this end, the IOTA Tangle is of significant interest to the company.
IOTA Tangle is an open-source, permissionless distributed ledger which goes beyond the existing blockchain paradigm. It is a framework that is built specifically with the intention of powering a vision of the future dominated by a hyper-secure Internet of Things (IoT) network of smart devices and machines, using a series of microtransactions that do not require fee payments.
In line with its vision, SinoPac has developed its proprietary iCertificate solution, which uses IOTA Tangle technology and data permanence in its operation. It describes iCertificate as a notary certification services that can be used for quick and secure verification of all kinds of digital documents in the public and private sector, potentially creating immense time, cost and efficiency savings in the process of conducting transactions.
iCertificate incorporates a hashing protocol that uses a private user key to encrypt and decrypt a document, which lessens the risk of exposing sensitive data to bad actors. Using pairing technology that connects a QR code with digital certification, iCertificate provides a user experience that is secure and convenient.
Speaking about iCertificate and the value of partnering with IOTA, Tina Chiang, SinoPac Senior Executive Vice President, Chief Digital & Technology Officer said:
“iCertificate is an always needed notary service in a digital certification application, not only in education or public utility territories but in trading and supply chain industries. We are pleased to partner with IOTA in distributed ledger technology. With IOTA’s support, iCertificate was developed as a flexible and extensible service, which efficiently consolidates the bothersome landscape of many individuals and different digital certification authorities into one platform.”