What is R3 Corda?

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Blockchain Handshake small Blockchain Game R3 Corda

R3 Corda is a powerful distributed ledger technology (DLT) platform for building blockchain applications. The overarching headquarters are in New York City, with offices in London, Hong Kong, Singapore, Tel Aviv, and San Francisco. 

How Does R3 Corda Operate?

R3 has attracted interest from 40+ banks that pay millions to join its consortium to work together on Corda technology. Moreover, they develop projects through working groups focused on specific use cases such as trade finance or KYC/AML compliance requirements. 

In September 2015, R3 announced partnerships with leading financial institutions to develop a global financial market structure incorporating distributed ledger technology on the R3 Corda platform.

The project focuses on distributed ledger technology (DLT) platform for building blockchain applications. R3 Corda has been built for financial services use cases and supports the confidentiality and privacy of data through tokenization and fine-grained access control models.

From Humble Beginnings

R3 was founded in 2014 by David E. Rutter, an ex-ICAP and BrokerTec executive.

He’s also the former CEO of SWIFT, a global financial messaging service used by 11,000 banks worldwide to facilitate cross-border payments. ICAP is a London-based interdealer broker that provides liquidity to financial markets. BrokerTec provides technology and services for stock exchanges and clearing houses worldwide.

Why The R3 Name?

The name of the company comes from the three-person credit default swap trade. It is a complex financial instrument that allows companies to insure themselves against nonpayment of debt by one or more customers. There are two parties involved:

  • The buyer wants to protect themselves from nonpayment (the seller).
  • The seller waives their right to collect debts on behalf of other people (the buyer).

R3 Corda is designed to work off-the-shelf for many financial services use cases. Particularly those that require high performance or are subject to regulatory oversight.

R3 has also created a suite of developer tools and released the source code for Corda under the Apache 2.0 open-source license. You can find these tools on GitHub.

A Growing Consortium

R3 Corda is an open-source platform that aims to solve the problems of financial organizations. It does so in a more efficient way than current systems. The technology is based on distributed ledger technology (DLT) and focuses on interoperability between blockchains. That makes it easy for companies to share services and data in a secure environment.

R3 is a consortium of banks and financial institutions that has developed Corda, a blockchain platform specifically designed for financial applications. Banks will use Corda to develop a global financial market structure using blockchain technology.

The company announced partnerships with leading financial institutions in 2015 to further develop the Corda platform and bring it to market. These partners included Barclays, BBVA, and Citigroup (Citi). Since then, several partners have come and gone, but that is to be expected.

Additionally, Citi also joined R3’s consortium as part of its membership in the company’s development initiative. In February 2016, nine banks, including Barclays and Goldman Sachs, joined the group as investors. The total amount of money raised by R3 to date is $112 million, which these partners invested in exchange for equity in the company.

R3 Corda is a powerful DLT platform for financial services

R3 Corda is a powerful DLT platform for financial services use cases. It has been used by banks, governments, and other large organizations to build and run their blockchain networks.

The main benefits of Corda include:

  • Corda is not a public DLT, but it can be connected to one to access the wider community and its resources
  • A high level of privacy — including control over which parties see what information about transactions on the network — as well as strong security measures that protect users from attacks
  • A built-in legal framework that provides consistency across different jurisdictions

R3 Corda Development Continues

By investing in R3 Corda, the participating banks can benefit from new technologies that will improve efficiency. Moreover, they do so at lower costs than developing them on their own individually or through another consortium like Hyperledger or Enterprise Ethereum Alliance (EEA).

Conclusion

We hope this article has helped you understand what R3 Corda is, how it works, and why it is essential for the future of banking. 

However, despite keen interest and investments, its future remains somewhat unclear. That will hopefully change in the future. 


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