Kvě 13

R3 Seeks $200 Million In Funding

Source: bitcoin

R3

The innovation firm R3 CEV is a consortium focused on “empowering the next generation of global financial services technology.” According to the Financial News publication, the New York-based company has just announced its looking to raise $200 million USD from the some of the 42 banks involved with the group.

Also read: Talking Crix with Founder Dmitry Koval

R3 Is Looking For It’s Banking Buddies To Invest

Financial News reports that discussions are just beginning and the group’s developers led by David Rutter have already been simulating the firms proof-of-concept. Back in April, the company revealed some info on its protocol Corda which they’ve been testing for the past six months. R3’s chief technology officer Richard Gendal Brown details in a recent blog post that Corda isn’t like your typical blockchain. The work has been researched and catered to at R3’s development lab and products produced will not be owned by investors.

Distributed ledger technology has offered the world a new look at finance and can change the environment with a multitude of new technology use cases. Legacy institutions who are working with R3 include JP Morgan, Goldman Sachs, HSBC, Mitsubishi UFJ Financial Group, Morgan Stanley, National Australia Bank, Royal Bank of Canada, and more. At R3’s Collaborative Lab, Tim Grant, stated back in March:

“This is the first time many ledgers have been run in parallel by many institutions in a rigorous, scientific way,”

According to the Financial News publication, a source said that one proposed idea on the table to raise money is a ten-year stake in the company and its operations. R3’s development lab was described by David Rutter in an interview with American Banker’s Robert Barba. Rutter explained the lab is under supervision and financial institutions are allowed to participate. Rutter states:

David Rutter, R3 CEV

“It brings a technical discipline to make sure the experiments are run in a controlled fashion. We are taking a thoughtful approach to choosing our use cases in part because we are not venture-backed. We don’t have to spin up some use case and promote how we are going to make billions of dollars in a short period of time. So, build the foundation first, then have a lab where very smart people come in and test proof of concepts. From there, we pick what we build to commercialize it.”

The difference between Corda and your average blockchain is the prototype is designed with industry standards and regulatory processes in mind. There is no native currency and CTO Richard Gendal Brown has established publicly on the R3 blog the Corda protocol is “not a blockchain.” If the company raises the $200 million, it will surely help push this new framework to global institutions. As the Financial Times states the conversation of funding has just begun but the firm is looking for backing from its banking constituents. With the blockchain fervor spreading across the finance world they just might get it.

R3 Is Not the Only Firm Trying to Sell This Technology

However, the R3 consortium has lots of competitors nipping at the blockchain phenomenon. On April 6th, a successful test of blockchain technology and smart contracts were used to manage post-trade lifecycle events for credit default swaps. The test was run by blockchain-based companies Axoni, and Markit amongst some legacy institutions. The banks who backed the working group included Bank of America, Merrill Lynch, Citi, Credit Suisse, J.P. Morgan. So R3 has stiff competition in the privatized digital ledger field with the same financial institutions shopping the fintech market. Alongside these companies, there are others looking to offer enterprise blockchain solutions. Businesses like Chain, Gem, and projects such as Hyperledger are most likely also sweet talking and showcasing product to the same investors. 

What do you think about R3 CEV looking for $200 million in funding? Let us know in the comments below.


Images courtesy of R3 CEV websites and Linkedin

 

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Bře 18

Tendermint Added to Microsoft Azure Platform

Source: bitcoin

Tendermint

San Francisco CA. March 18, 2016 — Tendermint, a next generation blockchain architecture that moves beyond limiting and monolithic token-based/bitcoin-like systems, is one of the latest added to Microsoft’s exploding suite of blockchain and related tools and applications as part of the tech giant’s Azure Blockchain-as-a-Service (BaaS) platform.

Disclaimer: This is a press release. Bitcoinist is not affiliated with this firm and is not responsible for its products and/or services.

Tendermint Being Added to Microsoft Azure

“We are proud to announce our partnership with Microsoft,” said Jae Kwon, CEO and founder of Tendermint.

“We’ll be integrating Microsoft Azure Cloud into our MintNet blockchain deployment tool and testing large-scale blockchain networks hosted on Azure Cloud,” adding, “We look forward to reporting details and metrics on our experiments.”

This project’s technology offers modular architecture for blockchain development, with an open-source blockchain engine at the core, which can power any ledger application.

Whether it be based on Bitcoin’s UTXO, the Ethereum virtual machine, or entirely novel designs, explained Kwon, his blockchain project can help power the network efficiently and to regulatory standards.

On Mar. 3, Tendermint was behind the scenes at the forefront of a large announcement by R3 CEV.

The technology innovation firm R3 completed trials with 40 banks using five different distributed ledger concepts, one of which was technology out of Eris Industries, specifically Eris:db, which runs Tendermint’s consensus protocol.

Tendermint uses Byzantine Fault Tolerant consensus, which is designed for accountability and regulatory compliance, but also scalability and speed.

Over 10,000 transactions per second, per blockchain can be achieved with Tendermint’s proof-of-stake protocol, with new blocks committed in less than 1000ms.

Tendermint’s consensus engine communicates to applications via a socket protocol called TMSP or Tendermint Socket Protocol. Further, Tendermint is able to decompose the blockchain design by offering a very simple API between the application process and consensus process.

The TMSP is also language agnostic so developers can write smart-contracts in any programming language. Users can also leverage existing codebases, workflows and development ecosystems to build complex, production-quality applications.

Visit Tendermint.com for more information.

About Tendermint

Tendermint is an open source, blockchain and language agnostic socket protocol that facilitates distributed application deployment. The blockchain development project removes the previous complexities associated with blockchain development so that large institutions, as well as smaller, independent programmers can create their own blockchain technologies easily and efficiently.


Images courtesy of Tendermint and Microsoft.

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Úno 08

R3 CEV Is Only The First Step of Distributed Ledger Technology In Finance

Source: bitcoin

Bitcoinist_finance

To many people, it seems inevitable that the blockchain will be a part of global financial services in the years to come. With multiple financial players actively working on projects revolving around distributed ledger technology, it only seems to be a matter of time until both worlds come together. However, the progress of introducing blockchain technology in financial services will not happen overnight, and there is plenty of work to be done.

Also read: How The Blockchain Will Change Real Estate

The Many Advantages of Distributed Ledger Technology

There is no denying the blockchain can offer a multitude of benefits to established financial players. Among the positive aspects are speeding up transactions by a significant margin, reducing overhead and transaction costs, and creating a global financial network. None of these benefits are possible through the legacy system financial players are using today.

Furthermore, there are security benefits to keep in mind as well. Rather than using centralized points of failure to record and process transactions, a distributed ledger would even out the workload among different locations and increase service uptime to as close to 100% as possible. However, that does not means banks are not looking to exert some control over what happens on the blockchain, which leads to the creation of alternative distributed ledger systems.

When people think of a blockchain solution for financial players, no one should expect them to use the distributed ledger powering the Bitcoin protocol itself. Instead, private blockchains will be created, which will remain in full control of banks and other institutions. To make matters worse, private blockchains cannot communicate to one another without using a third party service provider.

But that is not the only worry, as the term “blockchain” is being used for a variety of technological concepts, regardless of whether or not distributed ledger technology is involved. While it is only normal to see great excitement go hand in hand with technological innovation, overusing the term can lead to so-called “blockchain fatigue”, which will stifle growth in this sector.

Implementing distributed ledger technology in the financial word we know today will not be an easy task. Banks will not relinquish their control over consumer’s funds that easily, although their attention on the blockchain – through projects such as R3 CEV –  is a step in the right direction. At the same time, this technology could end up disrupting the banking industry altogether, and there will always be a certain level of caution when talking about distributed ledgers.

Solving Problems One Step At A Time

Furthermore, many Bitcoin users feel how the blockchain will eventually replace the banking infrastructure present today. If this were to be the case, distributed ledger technology would bring financial services to the unbanked and underbanked regions of the world. This powerful protocol we call the blockchain certainly holds all the cards to make that idea into a reality.

That being said, the future might not be as black-and-white as some people imagine it to be. The blockchain can either completely change the financial world as we know it, or complement it and create an economic ecosystem anyone in the world can use. In the end, all that matters is that financial issues are being solved one way or another.

What are your thoughts on the distributed ledger technology in finance? Will it complement or replace/ Let us know in the comments below!

Source: Finextra Paper

Images courtesy of Shutterstock, R3 CEV

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R3 CEV Is Only The First Step of Distributed Ledger Technology In Finance

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