The R3 consortium is actively developing a blockchain solution that can integrate with the existing legacy system, and their partnership with a lot of the world’s leading banks will help them achieve that goal. Corda, their distributed ledger platform for managing financial agreements, has been unveiled to the public.
R3 CEV Corda Platform For Distributed Ledgers
Ever since the R3 consortium announced their blockchain project in September of 2015, a lot of digital currency community members have been wondering what this platform would look like. There has been a lot of talk about private permissioned blockchains, which would create centralized control for banks and other financial institutions.
R3 CEV CTO Richard Brown has written a new blog post, in which he talks about the Corda platform and what its ultimate purpose will be. Keeping in mind how the team decided to build up this concept from the ground up, presenting a working theory in roughly six months is quite a feat. However, there is always a question as to how much help they have gotten from the Ethereum blockchain, as that seems to play a critical role in the plans of this consortium.
It has to be said that adopting Corda would remove most of the trust issues financial player shave. Even though banks work together in the grand scheme of things, there is a lot of distrust between parties, as they all keep separate records of financial transactions and agreements. Distributed ledger technology can solve all of these issues, and create a somewhat trustless ecosystem for all participants.
One of the aspects Richard Brown wants to highlight is how Corda is focusing primarily on respecting member privacy, although only so far as to the level needed to comply with financial services requirements. In their current form, financial institutions want- and sometimes need – to know just about everything about their customers, and it remains to be seen whether or not Corda integration can change that in the future.
R3 CEV CTO Richard Brown further explained:
“There isn’t some law of nature that says the set of people who have to be in consensus is the whole world. Bitcoin just happens to work that way because of its unique business problem. If you don’t have Bitcoin’s business problem then be very wary of those trying to sell you something that looks like a Bitcoin solution.”
There is a point to be made of how established financial players would not benefit from using the same level of transparency found in Bitcoin. After all, consumer A does not need to see what consumer B is doing with their funds at any given time. But that doesn’t mean Bitcoin is a less viable solution to the overall financial problems consumers are facing these days, as technology can only do so much to push banks in the right direction.
Source: R3 CEV
Header image courtesy of R3 CEV