There are Distributed Ledger Technologies (DLT) in the market which cater to multiple industries and their privacy needs based on the use case. But the finance industry has to deal with some standard contracts and trades which are usual in nature and have pre-defined economic attributes. In order to have least turn-around time and DLT implementation Corda has designed an architecture specific to financial agreements and manage financial assets. This would allow global adoption across the financial industry and thereby end up creating industry technology standards for DLT.
Corda began as a single global ledger but when the transaction involves a small subgroup of parties, corda tries to keep the relevant data purely within the subgroup. Corda is a permissioned blockchain which gives the control of government to the organizations participating in the transaction. Corda, designed specifically for the finance industry tackles the issues of privacy and scalability but reaching a consensus on the participants involved in the transaction level and not inside the distributed ledger level making it better suited for the financial industry. Corda is mostly inclined towards handling complex transactions in addition to restricting access to highly sensitive data
The architecture and deliberate choices of corda for persisting and proceeding financial agreements include three major benefits:
- Ledgers managed by this system will be accessible only to those entities which have a legitimate interest in the assets and agreements they manage.
- The conduct of financial agreements managed by the system will be described in computer code (smart contract) that explicitly refers to and gains its legality from over-arching lawful prose.
- To gain wide acceptance across the financial community, portions of the system will be open source for the open development process and proliferate open technological industry standards.
Corda seeks to eradicate a good number of issues that smother transactions between businesses, by making it possible for businesses to transact via smart contracts. The use of smart contracts makes it possible for the platform to execute tasks as soon as conditions programmed in the smart contract are achieved in real time.
In addition to making it easy for businesses to complete transactions, the commercial distribution platform also comes with unique features such as corporate firewalls as well as features for 24/7 support. Users can also take advantage of predictable release schedules as well as product management features
Corda Key Features:
- Corda prevents any unnecessary sharing of data on the blockchain as only people with legitimate need and access have access to a network.
- Corda platform enables the sharing of data in a network without the need for a central authority
- The consensus is achieved at the level of individuals transacting rather than the entire system
- Corda’s design comes with regulatory and supervisory observer nodes.
- Corda blockchain platforms support a wide variety of consensus mechanism and are built on industry-standard tools
- It does not have a native currency.