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What Blockchain is FedNow Using?
<p>FedNow is a new instant payment system developed by the Federal Reserve. It is designed to provide faster, more secure, and more efficient payments than traditional systems. FedNow is based on blockchain technology, which is a distributed ledger system that records transactions in a secure and transparent way. In this article, we will explore which blockchain FedNow is using and how it is being used to improve the payment system.</p><h2>Which Blockchain is FedNow Using?</h2><p>FedNow is using a permissioned blockchain called <strong>Hyperledger Fabric</strong>. Hyperledger Fabric is an open-source blockchain platform that is designed for use in enterprise applications. It is a permissioned blockchain, which means that only authorized participants can join the network and participate in the consensus process.</p><p>There are several reasons why FedNow chose to use Hyperledger Fabric. First, Hyperledger Fabric is a highly scalable blockchain that can handle a large volume of transactions. Second, Hyperledger Fabric is a very secure blockchain that uses a variety of cryptographic techniques to protect data. Third, Hyperledger Fabric is an open-source blockchain that is free to use and modify.</p><h2>How is Blockchain Being Used in FedNow?</h2><p>Blockchain is being used in FedNow in a variety of ways. First, blockchain is being used to record and track transactions. Each transaction is recorded on the blockchain in a secure and immutable way. This makes it impossible to tamper with or delete transactions, which helps to ensure the integrity of the payment system.</p><p>Second, blockchain is being used to facilitate the settlement of payments. When a payment is made through FedNow, the transaction is recorded on the blockchain and then sent to the recipient's bank. The recipient's bank then verifies the transaction and settles the payment. This process is much faster than traditional payment systems, which can take several days to settle.</p><p>Third, blockchain is being used to provide transparency and accountability in the payment system. All transactions on the blockchain are visible to all participants in the network. This helps to ensure that payments are being processed fairly and efficiently.</p><h2>Benefits of Using Blockchain in FedNow</h2><p>There are several benefits to using blockchain in FedNow, including:</p><ul>  <li><strong>Increased speed</strong>: Blockchain can help to speed up the payment process by eliminating the need for intermediaries and by settling payments in real time.</li>  <li><strong>Increased security</strong>: Blockchain is a very secure technology that uses a variety of cryptographic techniques to protect data. This makes it very difficult for unauthorized users to access or tamper with transactions.</li>  <li><strong>Increased transparency</strong>: All transactions on the blockchain are visible to all participants in the network. This helps to ensure that payments are being processed fairly and efficiently.</li>  <li><strong>Reduced costs</strong>: Blockchain can help to reduce the cost of payments by eliminating the need for intermediaries and by automating the settlement process.</li></ul><h2>Conclusion</h2><p>FedNow is a new instant payment system that is based on blockchain technology. Blockchain is being used in FedNow to record and track transactions, facilitate the settlement of payments, and provide transparency and accountability. Blockchain offers several benefits for FedNow, including increased speed, security, transparency, and reduced costs. FedNow is expected to launch in 2023 and will provide a faster, more secure, and more efficient way to make payments.</p>