Cordite: R3 Corda Tech Used by Banks in Attempt to Launch Crypto Assets

R3 is a platform that focuses on building blockchain technology that is responsible for improving the way business is conducted. Its technology leads the research and development of distributed ledger technology. Now, banks are looking at R3 technology as a way to launch crypto assets.

Cordite is an open-source community that is founded upon the code pioneered by R3. The technology may be able to provide enterprise blockchains with what ERC-20 did for Ethereum, which is to promote the creation of various tokens that represent assets on the same network.

However, unlike the prior example, Cordite was created especially for the banking industry. One of its most significant users is the Royal Bank of Scotland. With its use, financial institutions can receive digital representation for various assets that are traded by regulated institutions.

Richard Crook, RBS’s head of emerging technology, reported to CoinDesk,

“As we move to the next level of building distributed apps in the enterprise space, there is going to be a need for tokens and units of value on these ledgers.” Crook further stated that “if I am building an invoice platform for trade finance, when the invoice goes one way, I need a digital asset that you and I agree is worth something coming back.”

There is a downside to the use of enterprise tokens on Corda, which is that R3 Tech may find itself in dire straits concerning its financial health. On the other hand, the emergence of Corda shows that there is an open-source community being developed using R3 Tech. According to Richard Gendal Brown, the CTO of R3,

“Cordite is not something that R3 invented, it’s something that the community saw a need for and went to build.” He also added that “People building stuff on Corda that didn’t have to ask for permission tells me we are succeeding and that Corda is developing as a genuine platform.”

It is also important to recognize that Corda is also pioneering the use of fiat cash on distributed ledgers. With internal tokens at bigger firms, economies of shared ledgers may become more viable. On this matter, Crook stated that

“In the DLT projects that are going love, some of the participants are providing services, some of them are consuming services” and “The people that are providing services need to be paid for providing those services and the people who are using them need to pay for them.”

By using ERC-20 equivalents within Corda, a token sale may be possible as well. The difficulty is that even with a token sale, there seem to be greater possibilities for raising capital other ways with a bank. Such methods are not as regulated as a token sale, making them easier.

Another point worth mentioning is that there are efforts to promote a concept called digital mutual. This type of approach requires a form of legal structure in which ownership, management, and control are encoded. The benefit is that the code provides insight to the existing legal structure so that no legal changes are necessary. Crook stated,

“the FCA may also be interested in the concept of digital mutual. But that’s another story.”

[FREE] Get Our Best Crypto Trading, Mining & Investing Hacks:

*Action Required* Enter Your Email To Get Insight For Trending Coin News & Reviews

I will never give away, trade or sell your email address. You can unsubscribe at any time.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

eighteen − seven =