Corda Blockchain: Ruler of The Financial Enterprises
The following discussion will analyze the Corda blockchain ecosystem, the architecture, use cases, and popular Corda-based projects.
We live in an era where technology is blooming quite fast. Yet living in a prosperous society, we still lack a lot of features in our daily lives and businesses. Our businesses run on legacy networks that can’t store records without making any errors; it takes days to process a transaction, and cyber-attacks are a daily occurrence.
In a time like this, blockchain technology emerged as a knight in shining armor. The decentralization structure and the heavy security measures created a revolutionary technology that can get rid of all the flaws in our business models. But to make this technology more applicable in the enterprise sector, it needs to have more features. That’s why many enterprise blockchains started to emerge.
One of the popular enterprise blockchains is R3’s Corda. Corda happened to create a lot of hype in the market when it first started its journey as a new enterprise blockchain technology. And so, today, we’ll dive into this renowned enterprise blockchain and let you know how you can utilize their services.
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R3 is an enterprise-grade blockchain software firm. They have an ecosystem of 200 members from multiple industries. R3, along with all other members, develop the Corda platform and Corda enterprise platform for enterprise use cases.
The R3 blockchain consortium came into being in 2014. Over 180 professional developers are currently working on the development of Corda, and they have investments of 350 firms to back them up.
R3 blockchain consortium members develop blockchain technology for the sake of transforming the business world. All of their global network of partners works equally to develop different commerce and finance applications using the core software Corda blockchain.
Why Did R3 Create Corda?
R3 envisions a future where different legal contracts such as business contracts are managed and recorded in an automated system without any form of errors. Moreover, people need to transact seamlessly for any contracts without dealing with any friction.
Further, they think that the marketplace needs to run on a different business model where different enterprises would collaborate and maintain their ledger accordingly rather than having their independent system that’s inconsistent. Companies have to depend on a fair system that would treat every company the same way to do these.
Reconciliations, duplicates, breaks, and failed matches should be a thing of the past. Moreover, no one should get trapped in isolated pools of assets. That’s why they introduced a new technology called Corda.
Collectively R3 wants every individual and organization on the Corda blockchain to transact directly with any individual. They designed the architecture carefully to make it capable of handling real-world transactions legally. Further, R3’s Corda blockchain introduced multiple blockchain applications on the platform that can operate alongside the typical transitioning feature.
You’ll be fascinated to know that Corda offers a lot of features such as privacy, identity, governance, and many more. I’ll talk about more of it later in the guide.
In Contrast to Permissioned and Permissionless Blockchains
R3’s Corda blockchain is a platform for real-world entities so that they can manage legalized contracts and transfer any kind of value without facing any loss of privacy.
Corda blockchain can manage all the real-world transactions within two identified users with legal certainty and privacy in contrast to permissionless blockchain networks.
Compared to any kind of permissioned blockchain network, the Corda blockchain will allow you to have multiple parties co-exist within one network. They will also be able to interoperate within the same network system. R3 blockchain members explicitly designed the governance system for this purpose and to reflect common use cases on the platform.
To make sure that the Corda blockchain is able to settle all the obligations correctly, it will allow you to issue, transfer and even redeem any cash-like assets. Mainly these assets are real-world currencies, which have to follow regulations.
Anyone who will issue a native currency or use any tokens on the network can use these tokens to pay for any kind of participation or adoption of new features. You can also use the tokens to pay for any services that can be platform-specific or outside the platform. However, the services need to be on the Broader Corda network.
If you are not sure how permissioned blockchains are different from permissionless blockchains, then here’s a comparison guide to Permissioned vs. Permissionless Blockchains to help you understand how Corda is a permissioned blockchain. Further, hopefully, you’ll finally see a different approach to solving typical business problems.
What Problems Does Corda Blockchain Want to Solve?
Since 2016, Corda is one of the blockchain open-source software for everyone to use freely. A great collaborative effort of different global organizations made it possible to come up with the one-of-a-kind Corda blockchain. All the companies that came together to build this software represent a wide range of industries, and with regulations, the design was complete.
Yes, the Corda blockchain was for only the financial sector, and that was the sole purpose of developing this R3 blockchain technology in the first place. But after the release of practical blockchain use cases, Corda blockchain showed tremendous potential for other use cases beyond banking only.
But what was the motivating factor that drove Corda blockchain to come forward? R3 blockchain technology wanted to solve the core problem between individuals and a combination of firms – managing agreements and another form of contracts. Usually, these parties trust each other to make the transaction, but they don’t trust enough to maintain the same records as well.
It doesn’t matter which location or industry the parties are from, but everywhere we can see the same trust issues, don’t we? Additionally, they maintain their own ledger, and it records the specific view of their positions and agreements along with their set of customers.
But when every single enterprise maintains a different set of records of the same thing, it creates mismatching, and error fixing with additional costing. Moreover, these scenarios create a lot of conflicts if two firms have different views on the same transaction which creates a loophole for the bad party to exploit it.
Corda R3 Blockchain to the Rescue
In the past, the mismatching scenario was quite unavoidable. But now recently with R3 blockchain technology, there are quite a lot of ways to get rid of this problem in centralized infrastructure. However, the Corda blockchain had to join their networks without joining the firms themselves.
But this kind of approach also creates a tradeoff where you’d have to deal with inertia and rent-seeking. Anyway, everything comes with a cost, and you can already see how the financial sector was before it even started to use web-based applications. So, whenever there’s a new technology, there will be a far greater achievement than losses.
Corda blockchain, in this case, can use strong and secure cryptographic hashing to offer new opportunities. And this ensures the authoritative system of records where every enterprise taking part in it gets equal rights and has a common way to handle it. Furthermore, it won’t even disrupt their privacy at all.
Corda blockchain platform offers a system where the companies can finally know that what they see matches what the other firm sees. So, it reduces the costs, conflicts, and errors in the overall ledger system.
That’s why the Corda blockchain platform can evolve beyond only financial sectors and provide a level of trust between various organizations.
What is Corda?
Corda is distributed ledger software that processes and records data to promote a decentralized network environment. Mainly Corda is geared toward the financial sectors. Corda R3 architecture mainly supports smart contracts that resemblance the definition of Braine, Bakshi, and Clack.
The smart contract structure within Corda R3 architecture is an agreement where execution depends on the computer code but with human control and input. However, if anyone wants or needs, they can legally enforce these smart contracts anytime. If you face any unfairness in the smart contract feature of Corda private blockchain, you can take legal action.
Initially, R3 blockchain consortium members designed Corda private blockchain for the need of financial institutions. However, it turned out to be much broader in term of usage. You can see a heavy resemblance of the typical blockchain system in the Corda private blockchain, but it doesn’t have the traditional design that makes it not capable of handling real-life situations.
Mainly the Corda R3 architecture tweaks up the original version of blockchain and offers a blockchain 2.0! In the building block of the Corda R3 architecture, each one is called “state objects.” These objects represent a portion of the real-world contracts or contain the whole contract there.
It differs from typical blockchain because the entire virtual machine or entire ledger system depends on the users reaching consensus. But in Corda things are done a bit differently.
Corda offers three tools for the global distribution of consensus –
Smart contract logic that enables the users to transact using pre-agreed rules. It’s a part of their CorDapps.
Timestamping and uniqueness services. These are known as Notary pools. The services can order transactions temporarily, which eliminates conflicts.
Flow Framework that simplifies the writing process of complex protocols between distrusting users.
Corda Private Blockchain Model
The Corda R3 architecture begins with the idea of a global ledger system, where anyone can depend on the single point of source. But the Corda R3 architecture isn’t entirely like that. You won’t be able to see all the transactions in a ledger, so global visibility isn’t the feature of Corda private blockchain.
Any transaction between two individuals or groups will only be visible to them and no one else. However, users who will be participating in consensus can also see them as they need to verify it for the sake of the ledger.
In compared to platforms that offer a global broadcast of all transactions Corda blockchain definitely has the lead. Also, a certain private platform also offers these by partitioning the data into other channels or confidential contracts. But are they applicable in a network where billions of users will be using the platform every day? Well, no. So, this unique model gives the Corda r3 architecture a different edge than already existing platforms.
Mainly the foundation of this type of R3 blockchain platform is the state object. State object records the existence of all smart contracts and also provides the current state of the contract. And those who will participate in the smart contract will be able to see this object.
Obtaining Consistency within the Corda R3 Architecture
To make sure that the whole network is consistent in a shared, global system even though not everyone can see the ledger data. R3 blockchain members rely fully on the cryptographic hashes. The hashing in cryptography processes can identify data and users and link back to the previous transaction to maintain the chain.
All the state objects are immutable. So, no one will be able to change it. R3 blockchain members want to maintain the consensus for everyone to remain in agreement as the network grows. And all the R3 blockchain members believe that it’s essential to maintain the agreement if anyone wants to integrate blockchain in real-life scenarios.
Corda blockchain will make sure that every single data remains the same even though other operations are going on to update the data. This forms a Corda R3 architecture where anyone can transact reliably starting from simple monetary payments to sophisticated contracts.
In Corda blockchain platform, if you had really made an error, then you can update it. But you’ll have to use a transaction to make the change. This new transaction will consume the previous state object and develop a new state object with revised data. Furthermore, there are two aspects of consensus in Corda blockchain platform –
Transaction Validity
The users who will participate in Corda private blockchain’s contract process have to check some points that would be needed for an updated validation. For that, they need to check the associated contract codes in the state object. So, the users would need to be deterministic about it. Moreover, the state object needs to have all the party’s signatures, and if it indicates any other transaction, the transaction also has to be valid.
Transaction Uniqueness
How will the validators know whether a transaction is unique or not? In any case, validators can know if they see that all the inputs in the state object don’t have any revisions or don’t have any transactions linked to it.
Validators of a transaction can validate that by running the same contract code along with validation logic. However, what will happen if there are two transactions valid at the same time? How will they determine the sequence in the Corda R3 architecture?
In this case, you would need a predetermined observer, and the user needs to be a member of mutually distracting users in the notary pool. There can be multiple notary pools in a Corda private blockchain where each pool can offer different types of validation characteristics.
Usually, other types of blockchain platforms reach the consensus at the ledger level but not in Corda. Any user on this R3 blockchain platform will only see a fraction or subset of the whole ledger. And this way, other parties will get the privacy level they need without string their transaction info on another private channel.
Pluggable Architecture
Corda blockchain platform also offers some unique pluggable features. These pluggable features help to improve scalability, availability, privacy, algorithmic agility, and ledger-system compatibility.
Any kind of single services could get created with equally mutual distracting parties using the Byzantine-fault-tolerant consensus. All these uniqueness services or notary pools are only here to determine whether it consumed any previous transactions or not.
They can’t validate the transaction itself in any way in the R3 blockchain platform. So, these notary pools won’t be able to see all the contents of any transaction, therefore preserving that particular transaction’s scalability and privacy.
R3 blockchain consortium designed the concept that really offers a different kind of blockchain system.
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Architectural and Business Principles of Corda
Business Principles on the Corda Blockchain Platform
Inclusion: All the users are free to discover each other, and they can transact directly in an open network.
Assured Identity: Users will have assurance about the identities of all the participants in the network.
Privacy: Transactional details are for the transacting parties only. So, if you are transacting with another user, both of you can see the details but no one else can. The only exceptions are the users who are participating in the consensus.
Shared Logic: All the characteristics of an agreement will get managed by the system. Moreover, it will be computer code format, so that consistency and validity of that agreement stay intact.
Legal Footing: Any deal on the ledger is a form of evidence for that information legally. Everyone on the ledger would need to show this in case of any dispute.
Authoritative: All the information on the ledger have authoritative access and data. These won’t be a shadow of the information kept somewhere else. So, every information is the original copy.
Immutability: Anything on the ledger is the final state of that information. No one can change that. But if there was an error, then the users need to go through the subsequent transaction to change it.
Open System: The system itself is open source along with participation, governance, development and even supervision. This kind of system ensures the diverse use cases of the platform.
Corda Architectural Standards
There are few architectural standards for Corda blockchain platform. Let’s see what they are –
Scale: Corda is highly scalable. So, it can support billions of transactions every day.
Longevity: There will be multiple version of Corda running on the same network side by side. And any application will run on the latest version of Corda; you won’t have to change the code for that.
Secure: A great deal of security from the adversarial security environment will look after the network.
Stable: Evolving will be done really carefully. Each version will maintain the consensus critical network standards to avoid any bugs.
Interoperable: You can use multiple applications on the same network and have interoperability among them.
A set of interfaces that are standardized are in the architecture too, mainly for contracts. It helps to maximize the blockchain interoperability of the Corda R3 for a variety of providers. Furthermore, Corda R3 blockchains implementation in enterprises can help to accelerate growth and power.
Why This Architecture Excels?
R3 blockchain technology wants to target the industries’ problems by reducing costs, regulatory burdens, risks, and the innovation of services and products. Thus, it creates a diversity of services that can really help the blockchain ecosystem.
As far as other distributed ledger technology performs and offers, there are no existing ones that can provide the same level of facilities like Corda blockchain platform. For example, keeping mutually distrusting users on the same network always needs to have a common level of administrative access. But no other platform provides it.
Such as the architecture of Ethereum isn’t suitable as a solution and what the Corda blockchain platform wants to change. Maintaining restricting and keeping all sensitive information on the ledger won’t be a feature of Ethereum (although Enterprise Ethereum may permit that). Thus, R3 blockchain technology architecture excels in this field.
Smart Contracts or Business Logic of Corda Blockchain
Corda blockchain runs all of its business logic using the smart contract feature. Typically, smart contracts in Corda R3 Blockchain is a much simpler form of business logic. It’s a pure function where the user can reject or accept the proposed agreement and even compose one from simplistic reusable functions.
Every state object on the Corda R3 blockchain network will specify what function you need to use for any transaction that might create that state object or consume it. Furthermore, in any case, everyone has to follow these rules to transact and create a state object of any kind. If anyone doesn’t go with the associated rules, their state object won’t simply verify.
So, to make a transaction valid, you’d have to use the contract code along with its associated states. It’s your responsibility to propose the business logic that goes by all the rules outlined from before if you ever want to get all the smart contracts agreement validated.
That’s why contracts actually define the consensus part of the business logic on the Corda blockchain. Moreover, these are mobile; it means that you can download this and run it inside a sandbox where reviewing might not be necessary.
Although Corda R3 blockchain actually uses the signed form of contracts in their global Corda network.
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What Model Does the Smart Contract Use?
Corda blockchain followed the model of bitcoin where one party will propose a transaction and other people on the network will verify it. Although they extended the process and generalized it so that anyone can use it.
Furthermore, this is where the privacy and scale come into play in Corda R3 blockchain. Moreover, they selected Java Virtual Machine to execute all the smart contracts and validate them. But why? Well, Java Virtual Machine comes with a lot of existing libraries, and many are familiar with it. So, it’s much easier for a developer to work on this virtual machine.
The feature is best for R3 blockchain banks who can reuse their codes on this platform without totally altering it.
However, R3 blockchain consortium members use their customer sandbox rather than the JVM sandbox. Thus, it provides a more restrictive nature in case of any transactions. Furthermore, this enhances the security standard in the R3 blockchain banks.
Similar to Ethereum, instead of standardizing a language it uses a bytecode set, which lets users innovate with their contract language. They can even use any known language they prefer.
Moreover, the process ensures that using contract codes in any blockchain application would be utterly easy and promote good development.
How does Corda R3 Blockchain Manage Identities?
It’s time to talk about how the network actually manages identities. You already know R3 blockchain consortium members use identities to represent the node. So, there isn’t any anonymous aspect like Bitcoin or other blockchain networks.
Using digital identity is essential as financial transactions have to have some form of trust. In the identity of the Corda blockchain, the network will give out a certificate. Furthermore, the certificate will contain the sign of the user and the real-world name.
So, criminals who want to hide behind an alias and use the platform won’t be an option here. Thus, it gets rid of the bad side of blockchain technology – Criminal connections.
You will get a private key along with your Corda blockchain identity, and you’ll need to protect it. It’s because anything signed with your private key will legally bind you in the contract. So, if you disclose it to another party, he/she might take advantage of that key.
To do these Corda blockchain associates a human-readable name (originally the legal name) along with the public key and their IP address (Network Address).
The R3 blockchain consortium members are utterly strict about this procedure of mapping. You will get only one public key with your name. As you can see, the difference between private key vs. public key is huge.
By doing so, Corda blockchain offers an unambiguous legal entity to eliminate any form of ambiguity in the network or anywhere else. Based on this, many can create solutions that can be trusted fully.
The underlying Corda blockchain software creates this identity infrastructure within the participants but done not restrict the mode of operation or sophistication. However, the global Corda blockchain network gives out a specific model for this where parties will be able to collect all the identities to promote interoperability in multiple Corda networks.
CorDapps
While developing a CorDapp, there are some factors you’d need to maintain. You’d need to minimize the amount of sharing ability state within the application, and it also restricts what programming techniques you can use.
The combination of contacts codes, APIs, UI components, state objects, Flow frameworks, and wallet plugin make up the general structure or CorDapps or Corda Dapps. So, if you are planning on developing CorDapps, then you should keep these features in mind. Remove any of it, and it won’t be a Corda application.
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Why Build on the Corda Blockchain Platform?
Now you know about the Corda blockchain software. But the main issue is it looks all good, but why should you even consider using it? Well, there are practically a few reasons for that. Let’s see what they are –
R3 blockchain consortium members ensure to offer industry grade tools along with a perfectly developing environment for focusing on building any value on top of their applications.
It comes with a firewall application. If you can deploy it within your company, no one can ever harm your network system again. It’s practically the strongest security protocol you can ever hope for. So, communicating with another node across the world won’t be an issue.
You can bring in the legacy apps into the network system and boost them by synchronizing and linking all these apps with the client’s network.
You’ll get access to a wide range of CorDapps. These are all interoperable and Cora blockchain-based applications. Every single one is the output of the R3 blockchain consortium members.
R3 will work with ISVs and individuals to help out in integrating the platform within their company and maintain the disaster recovery protocol. This way you can finally focus on your business rather than on the network itself.
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The Global Corda Network
The Global Corda Network is a combination of the open-source Corda software, network parameters, set of standards, and governance processes. Usually, these are a set of nodes with a common standard to help them locate each other for direct transactions.
This network ensures an open ecosystem so that any service of Corda can be offered to specific nodes or all the nodes. The set of nodes locate each other with the help of assured identities and direct transactions.
The Global Corda Network offers a set of standards for the Corda nodes only to transact flawlessly despite who is operating them or which group they belong to. It won’t even matter if they run a different application or why they deployed the Corda blockchain platform in the first place.
The open ecosystem of Corda private blockchain offers a tremendous value for the enterprises or the customers. In any case, you can use the platform to run your internal networking system or to provide a solution for the customers.
That’s why the Corda private blockchain comes with a governing system, unlike the Corda software we previously talked about. Don’t confuse Corda blockchain With Global Corda network. Corda blockchain is just a part or segment of the Global Corda Network.
Business Networks of Global Corda Network
R3 blockchain members already anticipated the outcome of their Corda blockchain. They think that companies who will use Corda blockchain will probably come together to solve any common business issue. That’s why they pinned the deployments of R3 blockchain platform with specific business-oriented features along with membership opportunities.
The R3 blockchain members refer to these type of networks as business networks. It’s a network of companies where they can collaborate on a specific business purpose on the network, but they are also free to participate in other business networks and transact with nodes simultaneously.
Everything will be on the same infrastructure. They won’t have to develop new infrastructure for every collaboration. In this way, they are creating new types of blockchain business models.
Obviously here the R3 blockchain members ensured full freedom for the companies. Even though these companies are using the business network, but they won’t face any constraints for creating new contracts or moving assets.
Furthermore, the Corda blockchain business networks can define their own set of standards according to their needs.
These mainly include privacy levels, business logic, membership criteria’s, governance, and even the network’s asset type. You can be a user in different business networks at once and even transact within these frameworks seamlessly.
The sole purpose of the R3 blockchain members to form this global network is to unify the business under common ground. Typically business class, overlap and compete too much and in the end, both have very little success.
What Does The Global Corda Network Do?
Specifies the network standards. These parameters will define the consensus settings, and every node needs to follow it for global stability and compatibility.
Offers identity framework, which allows companies to have contracts with real-world companies without any doubts.
Recommends different consensus pools. These pools offer transparent, consistent and resilient consensus execution.
Enables oracles that relay information across the network.
Assists native digital currency along with fiat currencies, so that users can transact seamlessly.
Offer open governance system. They are the stakeholders of the ecosystem.
The Governance System
Although most power is on the hands of the Corda private blockchain users, there is still some residue governance system for maintaining various critical points on which every node relies on.
For their business networks, there should a governance system which the users of that network will choose. But even those governing system would have to follow the specifications of the underlying governance architecture.
This means that the R3 enterprise blockchain framework depends on the interest of the stakeholders and it makes operating in a way to satisfy their needs. For example, if you look at Bitcoins block, the block’s maximum size permission is actually arbitrary with few boundaries to restrict it.
But all the members have to agree on this arbitrary figure in order to maintain the network. So, if there is no underlying governance system in the network and no other government to set the settings, conflict is evident.
And why wouldn’t it? It’s not possible for everyone to agree on every kind of setting or standard within the framework. But the R3 blockchain platform makes sure that everyone follows some standard rules and there isn’t any conflict between the participants.
Corda R3 Blockchain: Network Parameters
You might think what the use is for network parameters or do the users even need them? Well, network parameters are in the Corda R3 blockchain for a whole lot of reasons. Firstly they help to make sure that all the nodes on the network can communicate successfully.
Some of these parameters include the message size or how they can use privacy options like Intel SGX or even when they should upgrade their nodes.
All of these seem like small factors and very technical points. But together they make up the infrastructure of the R3 blockchain platform. Furthermore, these small parameters could be a strong point of disagreement among the users.
It happened before with the Bitcoin blockchain size where users disagreed on it, and the debate continued for a long time. So, if the R3 blockchain members leave these on the hands of mass people, it will soon become politicized.
That’s why the responsibility of maintaining the setting as long as updating or creating more should be on the hands of the governing body right from the start.
Consensus Protocol of Corda Blockchain
R3 blockchain technology Corda works on a set of consensus protocols just like all other blockchain platforms. Users will know if a transaction was approved or not when the consensus algorithm processes it. Uniquely, Cora blockchain needs to maintain billions of transaction handling capability using the consensus algorithms.
That’s why R3 blockchain technology offers a variety of consensus services mainly known as notary pools. Additionally, every single notary pools offer different services on the same global Corda network. So, users are free to choose from these notary pools and get the services they want. It’s a quite different approach compared to the typical blockchain system, isn’t it?
Other participants can remotely run particular consensus algorithms in a closed and secured network. But to make sure that the users can transact and use the consensus they wish for the network’s governance body would need to look over the notary pools.
Furthermore, if they can maintain a list of the notary pools for the users, the participants can streamline their transaction verification processes.
The list will be sharable, so everyone would be able to see it and choose the best one that goes with their needs.
Moreover, providing blockchain security for the notary pools is also the primary task for the governance network.
Making the Corda Ecosystem Successful
Usually, the Corda blockchain and Global Corda network’s success rate mainly depends on some variants of the ecosystem. These variants are users, operators, governors, and designers of the business network.
Other than these the providers of notary nodes, application developer and infrastructure, and blockchain oracle service providers also take the cost.
But the good news is that you’ll be able to use fiat money on the global Corda network and this money will follow the typical fiat-money regulations. However, if you don’t want to limit regulations on the platform, you are free to use a native asset on the Corda blockchain to maintain it.
That could give you more flexibility to use the currency and utilize it to get storage, representations, or new features for the users.
Corda Enterprise is R3’s commercial distribution of the open-source platform Corda. The platform is specifically optimized to meet all the demands of enterprise blockchain use cases. This version of Corda blockchain is compatible and interoperable with the main Corda platform. If you are using even one of these, then you can freely interchange them as you need.
You won’t face any vendor lock-ins in this one. So, it’s a flexible option for all the enterprise companies out there. R3 blockchain consortium members will take care of the features once you make your request. They will tweak up the Corda software and give it the features you need for your organizations.
Features of Corda Enterprise
Blockchain Application Firewall
With this, enterprises can deploy the technology within their data centers, but they can also communicate with any node in the world. The R3 blockchain technology firewall is super secure, and no hacker can hack into the network and steal sensitive and valuable assets.
Support for SQL and Oracle Databases
You can seamlessly integrate industry-standard databases. For enterprises, the R3 blockchain platform is offering SQL and Oracle Databases. Moreover, many are already familiar with these databases. So, using these won’t be much difficult.
Compatibility
You can now obtain cross-version and cross-distribution operability within the Corda network. Corda keeps updating its software adding more features as the time goes by. So, maybe you’ve used a previous version of Corda and are still running application on it.
If they change their software on the overall network how will your application operate? To make sure you won’t face any issues, they ensure that both versions can run on the same network architecture without interrupting each other.
Optimization for IT Environments
The platform offers 24/7 support, performance, governance, release schedules, monitoring, disaster-recovery, high-availability and many more features for IT environments. So, all you’ll need to do is get the network integrated, and for any support, Corda blockchain team is here to back you up.
No Restrictions
With Corda blockchain, you’ll get access to the world’s first interoperable blockchain model making sure all the privacy is maintained. Furthermore, any businesses running on the network can communicate and transact with each other without any issues. The process streamlines the business model to a great extent.
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Popular Corda R3 Blockchain Use Cases
Many industries can utilize R3 Corda use cases. Some of them include – Government, healthcare, finance, supply chain, insurance, law and order, and many more. Moreover, all of these can use the Corda blockchain to drive more efficiency and simplify business transactions.
Furthermore, Corda blockchain works with some of the complex nature of transactional networks such as the finance sector. It helps them develop their R3 blockchain use cases to fit with the nature of other industries.
Not only it’s capable of driving efficiency, but another popular R3 blockchain uses case the improvement of the internal systems and processes. Corda blockchain offers immutability with liked information on the ledger. Furthermore, this linked information validates and promotes transparency within the enterprise itself or between two enterprises. The shared set and global facts help many organizations to –
Automate the auditing system using the immutable and linked nature of the network.
Reduce profile risks as the shared data standards offer more confidence in the market.
Replace their old, faulty internal networking system with a more simple process.
Finance
The financial sectors and all the requirement were the first demand for R3 blockchain use cases. A new type of regulations within financial industries along with the global crisis created the costliest obligations and compliances.
At the same time, many new business models and fintech startups cause disruptions with their innovation. So, with legacy networks, financial industries just can’t compete with the new technologies.
There are already some popular R3 blockchain use cases in the finance sector. It’s because Corda blockchain architecture came from the collaboration of the largest financial companies and stringent industry and regulators in the mix.
Moreover, Corda blockchain introduces a dramatic change of efficiencies to counter the rising costs but maintaining the efficiency they need.
This R3 blockchain in payment use cases include managing an entire life cycle of a contract, such as managing a trade finance group or post-trading paperwork. Corda blockchain can exchange assets automatically, and gets rid of the middleman. Other popular scenarios are –
Offer Instant Money Transfer payment system. Here R3 blockchain banks won’t have to rely on the complex nature of the nostro account with other banks.
Equity post-trading system where you can settle your payment immediately without any complex arrangement for asset or payment transaction.
Corda blockchain can also offer syndicated loans where the network can offer multiple contracts within enterprises.
R3 blockchain technology can offer asset rehypothecation where it can regulate the control limit within every contract and thus reduce the settlement time.
Supply Chain
Modern-day supply chain industries that need to collaborate to finalize a product launch in the marketplace. Therefore, the complex nature of the system needs a massive collaboration from nay sources. For example, automobiles or aircraft manufacturers need to collaborate with a lot of companies to gather the raw materials and then assemble them together to make the final product.
But this gives rise to a long chain of information and transaction that needs to have more efficiency in managing properly.
R3 blockchain for supply chain use cases can be a great solution for this system. Corda blockchain is capable of giving them the network they need using the global Corda network. They can transact and exchange information without worrying about a single point of failure. Corda blockchain helps supply chain industries to –
Show proof of certain information and verify the authenticity of that information.
Create an encapsulation and automated auditing system for business rules using transactions.
View the origin of the components and drive connection between them. Usually, the system they use is faulty and needs automation.
Yes, the insurance industry does offer confidence to many business operations. But the amount of paperwork and processing time is one of the main issues of this industry. If you have any kind of insurance, you probably know the fact by now.
Additionally, the insurance industry needs to process and records all the documents for every single insurance. And needless to say, insurance does need a lot of document verifications to form you. Only one single mistake can add friction and waste hours.
R3 blockchain for insurance uses cases can ensure a better environment for both the insurer and insuring customer. You will see less fraudulence, greater possibility and more efficiency within the industry.
Corda blockchain makes sure that these processes are automated using the smart contract system. You will set the contract with the insuring policy rules, and after the verification of your documents on the network, you will get the insurance you deserve. Such a smart contract can –
Collect all the necessary information from the stakeholder for the insurance claim.
Provide timely payment, and it would be automated.
Reduce the level of errors and fraud activities with immutable and secure leger.
Increase overall customer satisfaction.
Healthcare
R3 blockchain for healthcare use case can change the healthcare sector for the best. Usually, the healthcare industry is a complex and large network of organizations who need to manage patient data securely. There are some challenges associated with it –
To share the data of a patient for a comprehensive understanding without compromising the patient’s privacy.
Synchronizing all the disparate systems that hold the patient information and make sure that it offers error-free data formats and identifiers.
Contacting with the healthcare insurance companies and providing valid information for patient’s need.
Managing all the complex and inconsistent rules and processes.
Corda blockchain can unite all the disparate processes, reduce the costs, and increase the data flow that results in better patient outcomes and experience. There are few opportunities for healthcare to use Corda blockchain –
Use the global Corda network to exchange data with other instructions securely and confidentially. It will also follow the healthcare regulation to the point.
The framework that preserves all the identity while maintaining secrecy. Furthermore, this ensures that the patients will take all the control of their information.
Smart contract integration that offers a rule-based and consistent method for accessing the patient information.
Connections to insurance provider directly on the network. Moreover, this helps to verify the information need quite fast and automates the claiming process.
Government
The government plays one of the vital roles in terms of providing a trusted source for transactions. For example, mortgages, land or car titles are few of the areas where this entity plays a huge role. However, their network base runs on an inefficient system that’s full of error. Not to mention the tremendous processing time it needs for every single governmental issue.
Furthermore, these are exposed to tampering where the bad player takes their share of the loot, and the innocent civilians suffer the costs.
R3 blockchain use cases in this sector can get rid of the fraudulence in the paperwork of these vital factors. With the help of immutable records and secure transaction process, the blockchain for government solution can facilitate civilian rights more efficiently. Moreover, they can also store sensitive information on the network, and there would be no paper trail left for anyone to get their hand into.
Law and Order
Law and order don’t technically go with the typical structure of blockchain. Many who use these platforms that’s why can’t take any legal actions in time when they are faced with fraudulent activity on the network. Furthermore, this doesn’t give the right the participants deserve.
Although many companies are now using legal ways to launch their platform, still they are facing legal issues. The main reason for it is the lack of proper blockchain education among the lawyers that handle these contracts.
R3 blockchain use cases can help out these industries by handling the legal aspect of the transitions. As it already supports fiat money, you won’t have to worry about the legal issues. Any entity using the platform can equality benefit and even take legal actions when necessary. Usually, Corda blockchain can –
Handle legal aspects of blockchain technology.
Manages, records and automates legal agreements between enterprises.
Provide a specialized platform for lawyers to fast track their learning curve.
Aspiring to become a Corda developer? Here’s a guide to R3 Corda Certification that will help you build your blockchain career.
Corda Baas Vendors
At present, there are only a handful of vendors that provide Corda Blockchain. Let’s see what they are –
AWS Blockchain Templates
Amazon is one of those few vendors that offer Corda blockchain platform. They offer templates of the network which will allow you to develop blockchain based projects in a short amount of time. Using the AWS blockchain templates, you set up Corda networks within minutes.
What’s The Benefit?
It offers a really faster deployment time. It only takes a minute to set up your node.
Choose the best package that best goes with your need.
AWS will provide all the tools you would need to add features and change the Corda blockchain for your company.
You will only pay for the services of Corda; there aren’t any additional hidden costs.
Microsoft Azure
Microsoft Azure blockchain is one of the popular BAAS vendors for enterprise use cases, and now they are bringing the Corda platform too. On their Azure workbench, you’ll be able to develop the network before you deploy it. It’s super easy, and obviously, you’ll get the best grade of services to form them.
What Are The Features?
Additional SMS and Voice features help to track down supply chain goods quite easily.
Offer integration with the Internet of Things.
Network deployment within a short amount of time.
Cost effective Corda blockchain solutions and moreover they are managed.
Accenture
Leading the way of business consultancy company Accenture is also offering Corda blockchain solutions for you. You’ll be able to get the solution form their products list. At present, they only offer a simple version of Corda.
Furthermore, we think you can tweak up the platform and get management support from them.
What Do They Offer?
They will analyze popular strategies for financial sectors and help you decide which Corda features would be a great way to start.
Accenture would tell you how to use the Corda blockchain platform and target specific audiences.
If you don’t know anything about blockchain, they will offer training for you.
They will offer toolset for tweaking up your Corda platform.
Accenture will provide a wide range of Corda blockchain solutions.
Hewlett Packard Enterprise
Hewlett Packard is a relatively new Blockchain as a service on the market. They are launching their Mission Critical DLT, and they will offer special services for their customers. To make sure all the user’s get their fair share of security, performance, and resiliency they are launching with Corda.
You would be able to get different Corda solutions to form them, and you can tweak it from their platform. As it’s relatively new, we currently don’t have much information about which features they will offer.
R3 Corda Consortiums
Contour
Contour is a wonderful addition to the consortium family powered by R3’s Corda blockchain and CryptoBLK’s technology. Microsoft Azure will be the main tech supporter for this wonderful project. Moreover, Azure is a cloud platform for blockchain development. Contour is a project where popular banks are coming together to create a platform that will help them digitize all the official documentation a bank ever needs to work with.
Nowadays banks are falling behind, and they also want a part in the new revolution. Corda blockchain is perfect for that environment.
With the help of Contour blockchain, all the R3 blockchain banks can cut down the processing time to a great extent. These twelve banks that have come together are –
Intesa Sanpaolo, U.S Bank, HSBC, CTBC bank NatWest, SEB, Mizuho, Bangkok Bank, BBVA, Scotiabank, ING, and BNP Paribas.
Marco Polo
Marco Polo is another awesome consortium blockchain fueled with the R3 Corda blockchain platform. This time they are working with the TradeIX Company, and at present, they have ten popular financial institutions on the team.
Marco Polo will use R3 blockchain use cases and TradeIX’s TIX core to make the platform. TIX core is actually a different type of distributed ledger system. Furthermore, together they will create a hybrid blockchain platform and streamline the process of tracking all the payments of the consortium banks. Moreover, this process will reduce the time significantly. The ten financial organizations are –
Commerzbank, Bangkok Bank, Natixis, NatWest DNB, OP Financial, SMBC, BNP Paribas, Standard Chartered, and ING.
B3i
R3 Corda blockchain is powering another awesome project called B3i. B3i will utilize the R3 blockchain use cases and take full-on tech support from their team. At present, thirteen R3 blockchain banks are collaboration on the project. The primary aim is to offer digitized insurance documentation for the institutions.
It will streamline the process of insurance claims. These industries are –
Swiss Re, Achmea, Munich Re, Allianz, Zurich Insurance Group, Liberty Mutual, Aegon, Hanover Re, Tokio Marine, XL Catlin, Generali, SCOR, and Ageas.
RiskBlock Alliance
This is another consortium focused on the insurance industry. Here many types of organizations came together with such as brokers, carriers, and reinsurers. Moreover, their primary aim is to deliver blockchain solutions to any kind of insurance industry.
But it’s different from other insurance consortiums as it’s a nonprofit consortium. They are using R3’s Corda blockchain to power their Canopy 2.0 and streamline all the features respectively. At present thirty institutions on the team –
Acuity Insurance, Assurant, FHM Insurance Company, BB&T Insurance Holdings, Inc., Marsh (Worldwide), Ohio Mutual Insurance Group, Murphy Insurance Agency, Horace Mann Educators Corporation, Farmers Insurance, EMC Insurance Companies, Nationwide Insurance, State Farm, WR Berkley, USAA, United Educators, TrueNorth, Travelers, State Auto, Penn National Insurance, RenaissanceRe Services, Ltd., RCM&D, Munich Reinsurance America, Inc., Liberty Mutual, Hanover, American Agricultural Insurance Company, GEICO, Erie Insurance, Chubb, Amerisure Mutual Insurance Company, and American Family.
CReal-World Companies Using R3’s Corda
Project Jasper
Canada wanted to utilize the power of blockchain, and therefore we got the project Jasper. It launched in 2016, and the primary target of the project was to transform Canada’s payment system. Furthermore, the project is a collaboration of bank of Canada, payments Canada, and other financial institutions.
At present, the project is going on through different phases, and they are suing Corda blockchain to power the project. All the participants of this project are –
HSBC, National Bank of Canada, Royal Bank of Canada, Bank of Montreal, Scotiabank, TD Bank, CIBC, Payments Canada, and Bank of Canada (the central bank).
Project Ubin
Monetary Authority of Singapore or MAS is the initiative of this project. Project Ubin is the application of blockchain technology within Singapore’s financial systems. Currently, they are using the Corda blockchain as they think Corda can offer the level of features they need. Unlike other countries, MAS actually acts like the central banks and every regulation of the financial system goes through them. The project is still under observation.
Project Inthanon-LionRock
Project LionRock first came to be form 2017. It uses R3’s enormous knowledge and Corda blockchain to build interbank payment systems. Typically interbank payment system faces a lot of problems and errors. Typically errors like processing time or lifecycle get stacked up in the legacy network systems.
On January, 2020, Hong Kong Monetary Authority and Bank of Thailand came together and formed a partnership and named the project Inthanon-LionRock. According to the banks, the popularity and use of digital currencies drove them to this decision.
Furthermore, they also want to use distributed ledger technology in the financial sectors and maintain its token. Using Corda blockchain platform they can do both. As Corda supports fiat money along with native tokens, this will give them a different edge to the whole scheme.
Kasikornbank PLC, Krung Thai Bank PLC, Bank of Ayudhya PLC, Bangkok Bank PLC, Thanachart Bank PLC, Siam Commercial Bank PLC, Standard Chartered Bank (Thai) PLC, HSBC, and ZA.
That’s why the project Inthanon-LionRock is using Corda blockchain to digitize the system. They will also introduce digital currencies to extend the banks payment methods.
ING
ING sighed a five year deal with R3 to use their Corda platform in every way. Moreover, they will have full access to all the commercial Corda Blockchain releases for this whole five years. ING will use this contract to roll out different Corda based services for banks globally and would also give access to the CorDapps within the framework.
Furthermore, ING is also following a Corda dApp development guide as they want to adopt these CorDapps in business industries where different businesses have contacts through them.
SBI Holdings
SBI Holdings is one of the largest shareholders of the company R3. They are starting a new joint venture to adopt Corda blockchain in Japan and East Asian regions. R3 will provide the technical support for any kind of adoption within these regions along with providing their Corda enterprise and Corda software.
The partnership will allow SBI to use their features for them and also provide it to potential customers.
HSBlox
Together with the help of Corda platform, HSBlox is bringing a new type of solution for the healthcare industries. They are collaborating with R3 to leverage the interests and trust features from their Corda Blockchain.
Furthermore, HSBlox is also going to implement blockchain solution on a new healthcare application to streamline the payment process let along preserve the patient’s privacy in every way.
Insurwave
The Insurwave platform is one of the best projects so far on Corda blockchain. Multiple parties joined together to make it a possibility. Mainly the companies were –
Maersk, Guardtime, EY, ACORD, MS Amlin, XL Catlin, Willis Towers Watson, and Microsoft.
The project is the world’s first marine insurance solution on the blockchain. It uses Corda’s enterprise-grade features to reduce risk across different organizations dealing with marine insurances. Marine insurance is one of the complex insurance processes of all time. Moreover, it takes a lot of parties to maintain a single firm’s marine insurance.
But with the help from Corda Blockchain now they can manage it with ease.
SWIFT
You must hear about the global banking payment network SWIFT. They are currently using Corda blockchain to test out the SPI payment standards. Although the venture is trial for now, if everything goes on point, they will make it official.
Furthermore, they are using the Corda Settler to offer users to make payments leveraging the privacy and security it offers. However, they won’t be using the native Corda token for their applications.
NatWest Bank
Another win for the R3’s Corda blockchain platform is the NatWest banks new project. NatWest is using the Corda platform to build a blockchain app to syndicate the loans market. Corda blockchain can manage risks like no other blockchain platform. And this feature specifically attracted NatWest to use it for the loan industry.
Furthermore, the company will explore different features of Corda.
ChainThat
ChainThat was always a prominent enthusiast for blockchain technology. After the launch of Corda blockchain, they showed a keep interest in it. With the help of the network, they are powering up their Bermuda project with Corda.
Bermuda is a project where they will reduce the risk of insurance and reinsurance and offer a capital exchange platform for the users.
MonetaGo
The software development company MonetaGo is working on the Corda blockchain platform to offer blockchain solutions to Mexico and other international markets mainly in India. Previously they wanted to use Hyperledger Fabric, but they later canceled it out.
According to them, Corda blockchain is more suitable for its blockchain based fraud mitigation solutions.
Legal Center of Excellence
This awesome and innovative platform is the creation of R3. Their Legal Center of Excellence will offer the latest and best practices of legal aspects in blockchain technology. The platform is based on their Corda blockchain, and already ten high-end law firms have signed up for the venture.
Nowadays, lawyers need to keep up with the development of blockchain to manage the legal aspects efficiently. But there isn’t any free blockchain training for lawyers only. However, with this platform’s help, they can interact with the network and fully understand what blockchain is offering.
The ten firms are –
Stroock, Shearman & Sterling, Perkins Coie, Holland & Knight, Fasken, Crowell & Moring, Clifford Chance, Baker McKenzie, and Ashurst.
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Concluding Notes
Compared to all the blockchain platforms or distributed ledger platforms on the market, Corda blockchain did emerge to enforce and record business contracts between all trading partners.
For that, it takes a different kind of approach to offer the transaction semantics and data distribution needed, as Corda blockchain also needs to act like a distributed ledger. Mainly it indicates the enforceable and automatable execution of contracts.
You can deploy multiple applications for different purposes on the network. It’s super easy with the Corda BAAS vendors on the mix. In a close future, we can say, we would see more of R3’s Corda blockchain, not only in financial sectors but other sectors as well.
So, at a glance, Corda blockchain does seem like a great solution for enterprises. It’s finally getting the recognition, and many are already thrilled about running their nodes on the network. Let’s see whether they can really keep up the good work. If you want to build up your career in Corda, you must enroll in our upcoming Corda development course to help you understand and utilize the ecosystem better.
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!
An engineer, a gadget-freak, and a perfection fanatic – the ideal combination of a tech-nerd! This Enterprise Blockchain Analyst seems to have an unfathomable interest in blockchains, which makes him perfect for sharing his new discoveries on 101 Blockchains.
