Fujitsu Laboratories has announced that it has developed a security technology that can safely and easily execute exchanges and payments in different virtual currencies.

Dubbed "ConnectionChain," the new technology – an extension of smart contract technology – interconnects multiple blockchains by recording the series of related transactions on each chain in a dedicated blockchain, or a "connection-type chain.” The objective is to link the currency exchange into a single transaction process that can be automatically executed.

“Settlement between virtual currencies managed using blockchains…requires a reliable application to handle the currency exchange processing at the boundaries between the blockchains, and ensuring transparency in this process has been an ongoing issue,” Fujitsu Laboratories said in its official release.

Fujitsu Laboratories said that it has also developed a transaction control technology which will synchronize execution timing of the transaction process on each chain. The system would ensure transparency of transactions as all transaction processes are recorded as a trail in the connecting blockchains, even when they cross multiple chains.

Fujitsu Laboratories trialed this technology in a simulated virtual currency exchange system. The results showed that the connecting blockchain recorded the entire transaction trail for the virtual currency exchange when the currency exchange process was executed.

“These technologies make it easy to support payments in a variety of regional currencies, and operators can also easily setup special exchange rates for promotional campaigns,” it added.

Fujitsu Laboratories said that it will expand this technology to other areas such as high-trust data exchanges between companies and contract automation, and continue to conduct trials in a variety of fields, with the goal of commercialization in fiscal 2018 and beyond.