Speaking of Blockchain in innovation, many may think of the Ethereum and Ripple (Read about the difference of the Bitcoin, Blockchain, Ethereum, Ripple, and Hyperledger). Aside from these terms, a Blockchain platform that is also recognized and is officially being used in Thailand, is the B2P: Blockchain for Procure-to-Pay. This Blockchain platform is called the R3 Corda. Today, let’s get to know this platform with Digital Ventures.
What are R3 and Corda?
R3 is a large Blockchain consortium consisting of banks, leading financial institutions, and the government sector. At present, R3 has over 200 members worldwide (as of October 2018). Their mutual goal is to seek solutions to apply Blockchain to different industries, especially in the financial sector. In August, the Bank of Thailand announced a collaboration with R3 and 8 commercial banks in Thailand namely the Bangkok Bank, Krungthai Bank, Bank of Ayudhya, Kasikorn Bank, Siam Commercial Bank, Thanachart Bank, Standard Chartered, and HSBC. They will be using the Corda platform for a prototype system for funds transfer between financial institutions under the name Project Inthanon.
Corda is an outstanding masterpiece by R3 which is an open source platform that was first launched in 2016. This year, it was relaunched under the name Corda for Enterprise. Moreover, Corda is recognized by banks and financial institutions worldwide as the world-class Blockchain for enterprise for financial services.
Attributes of the Corda platform.
Corda is an open source software platform specializing in data management for the enterprise. It utilizes the Distribute Ledger Technology (DLT) innovation that is built by the Blockchain.
DLT helps secure transactions of users in the system without the use of a medium. This is done by sending a transaction copy to everyone in the consensus and a cryptographic key is required to access the information. Although the DLT can prevent file modification, users may still feel insecure when their data is in the hands of other users, regardless of the encryption. This is especially true for the business sector wherein transaction data is confidential.
Corda is basically the upgraded DLT. Aside from the quick transaction without a medium, the system can keep the stored data secure because, in order to access the information, permission from the transaction’s related parties is required.
How can Corda disregard the medium and consensus from the distributed ledger?
This process is regarded as the key feature of Corda. Transactions on the distributed ledger must be confirmed by every user in the system that holds the account in order to check whether the sender has enough fund for the transaction. However, Corda has removed the process of approval from everyone in the system. This is replaced with a verification process only between related parties in the transaction. The related parties can be more than two parties. An example is in a supply chain wherein there is a Seller, Buyer, and the Bank. In the process, the related parties will only check the data that is crucial and related to their role. For instance, the Buyer needs to confirm the purchase order and check the goods received while the Supplier must deliver the goods according to the terms and issue an invoice. The Bank will take orders from the Buyer to make the payment to the Supplier. When everyone agrees, the transaction is automatic.
Why Corda approves transactions only by related parties?
Most Blockchain application such as Bitcoin or Ethereum is in a public Blockchain. This allows everyone in the system to access the information, that is, everyone simultaneously receives the transaction copy. This means that if there is incorrect data, it can only be revised with a request for an update that is resent to everyone’s system for a revision.
The Ethereum is programmed so that everyone in the system must receive the same transaction data before the transaction can be activated. In the future when accounts have tremendous users, it will be time-consuming before each one can receive the new transaction record, thus, also delaying the approval of transactions.
Corda has integrated the credibility verification system and the liquidity of Blockchain wherein approval is needed from related parties of each transaction. For instance, in a supply chain, approval is needed between the Buyer and Seller, Buyer and Bank, and Seller and Bank. This helps increase speed and uplifts the efficiency of the conventional Procure-to-Pay process without the need to create a consensus.
The Corda platform behind the Blockchain for Procure-to-Pay (B2P) solution.
The Blockchain for Procure-to-Pay or B2P that Digital Ventures has recently launched is an innovative solution applied and developed from the Blockchain on R3’s Corda platform that will evolve and enhance the Procure-to-Pay process. The B2P solution using Corda in the supply chain sector is the first of its kind.
We hope that R3 and Corda will allow you to get to know Blockchain a little better. Follow us for more updates regarding Blockchain.