tacct: Germany’s „Kryptowertpapier“ Finally Get Interesting

Using a private version of Ethereum

While other crypto security registrars like Cashlink use a public blockchain, ecrop uses a private version of Ethereum. The reasons Michael cites for this are sadly too plausible: “First of all, there’s a rule that with a public chain, you fall into a risk class where financial institutions have to cover crypto assets 100 percent under Basel III. It’s expensive and doesn’t scale well. We don’t like the rule, but it exists.”

The article describes the various workarounds they had to create. A new kind of realism? Just a tool …

All this doesn’t quite sound like what cryptocurrencies originally stood for—but it’s practical and serves a purpose. “I’m an old-fashioned entrepreneur,” Stefan notes, “I really have nothing to do with crypto, and most investors preferably don’t want to hear the word.”

What do they mean by a 'private version of Ethereum'? Just a private blockchain? Or did they use some Railgun or a privacy-focused L2?

They use Hyperledger Besu for a private permissioned chain, see https://besu.hyperledger.org/private-networks