Chain: Open Source Protocol & Financial Blockchain Technology?
Developed to take advantage of the newly emerging crypto market, Chain technology allows enterprises to build blockchain network while maintaining centralized authority.
Based in San Francisco, Chain is essentially bridging the gap between cryptocurrencies based in the blockchain and traditional financial institutions. Its goal is to create a more efficient overall financial system that focuses on blockchain infrastructure for enterprises.
Founded in 2014, the startup has already partnered with companies like Visa, Citigroup, and Capital One and raised over $40 million to develop its methods and forge the way in the future of finance.
Tom Jessop and Adam Ludwin, Chain’s President and CEO, respectively, are behind this technology company and have launched Chain Core and Sequence. These products serve as the financial infrastructure and manage records.
How Chain Works
Conceptually, Chain views itself as combining the decentralized model of blockchain technology and centralized custodial infrastructures that exist within traditional financial models. This allows them to take advantage of the benefits of new cryptographic ledgers while still operating like a centralized enterprise.
The blockchain distributes the origin and governing of assets in its network amongst its users and contributors, spreading the authority. Each network, though, is typically adjudicated by some set of distinguished agents, referred to as a federation.
With this system, the ideal characteristics from each method are preserved. From the traditional model, privacy and administrative standards can be met within official, sanctioned markets, while the efficient transferral of funds is achieved through the blockchain.
The result is that Chain can operate in both the cryptocurrency and physical markets with support for corporate securities, rising currencies, and even gift cards. This allows Chain to stay relevant with fluctuating market and economic trends, as well as with the unprecedented blockchain realm.
Interested users are able to create a test network, supported by both IC3 and Microsoft, to understand exactly what their application would look like. Because Chain does not operate on its own network, its clients are the sole drivers and launchers of such networks.
Functioning as the foundational network, Chain Core incorporates the blockchain into established enterprise protocols for an all-encompassing financial service.
To view Chain’s software, interested clients are encouraged to utilize the Chain Core Developer Edition, which can be downloaded through the company website. It is completely free and allows developers the chance to experiment with their ideas.
Beyond this testnet, companies committed to pursuing the complete software must purchase the license to the Chain Core Enterprise Edition, which is the only edition that yields a permanent brand network.
Once established, this platform opens the opportunity for institutions to participate in the decentralized transferal of assets via blockchain technology, as well as connect to other Chain networks.
While Chain Core serves as the mainframe for these types of asset exchanges, Sequence is essential in maintaining a functioning ledger that can grow and change with the network. Sequence is conceptually based in the blockchain, which functions as the public ledger of all cryptocurrency transactions.
Thus, this product not only records balances and asset growth, but also removes the need for a new company to draft and implement its own account records. This frees up time to focus on enterprise processes such as scaling products and managing funds.
Sequence is designed to take advantage of both cryptographic transactions and cloud storage by keeping everything within the network and allowing companies to prioritize innovation. This provides an extra sense of security in that such exchanges are similar to smart contracts, which preserve transactions as immutable.
Users are able to grow their company’s ledgers through multiple accounts and entities, and can access their information at time.
The Future of Chain
Though this technology is still young, experts predict that these products will have an array of important uses for the developing world of crypto finance.
Together, Chain Core and Sequence will shape the global transmission of assets by moving money quickly and directly to financial advisors and portfolio managers, creating automated contracts, developing a reward program for clients interacting with multiple companies, and providing a secure and complete company ledger.
Because the cryptocurrency market is so new, Chain’s mid-point stance with one foot in the blockchain and the other in centralized financial models seems to capture the apparent benefits of both. With so many potential uses for this technology, adaptive companies and enterprise users may be interested in this financial option.