Why choose Corda?

In the fast-paced world that we are living in, financial services and other regulated markets are seeking apps every day. R3, a leading provider of enterprise technology and services for the development of multi-party solutions, came with a solution with their own DLT platform for developing multi-party applications, empowering regulated industries with direct collaboration where trust and speed are critical.

What is Corda?

Corda is a scalable, permissioned peer-to-peer (P2P) distributed ledger technology (DLT) or blockchain application development platform that enables the building of multi-party applications that foster and deliver digital trust between parties in regulated markets.

Corda’s architecture is purpose-built for high-value transactions with speed and trust. Build permissioned applications with a flexible membership model and powerful development toolkits.

What is possible with Corda?

Today’s global economy is facing an array of challenges, let’s discover how regulated institutions and software vendors are using Corda to meet markets demand:

  • Digital Assets . As of today, significant parts of the asset lifecycle remain fragmented and highly manual, leading to errors and rising costs. These challenges, combined with the potential to tokenize previously illiquid assets, are driving the demand for digital assets and modernization.

Corda’s Solution – while maintaining regulatory compliance and keeping counterparties in sync, the entire asset lifecycle—issuance, trading, and settlement—is managed on a P2P permissioned shared ledger allowing digital assets to move freely between counterparties.

  • Digital Currencies . Problems such as liquidity entrapment, expensive and slow payment and settlement, siloed systems, and an overreliance on account-to-account transfer, are leading to complex operational overhead, increased credit, counterparty, and settlement risk, as well as customer frustration.

Corda’s Solution – Central Bank Digital Currencies (CBDCs) can change the way liquidity is managed, enable faster cross-border payments, and deliver real-time person-to-person transfers with instant settlement. By using CBDCs, central banks and monetary authorities can drive efficiency and transparency, while maintaining monetary policy and financial stability in their region.

  • Payments . In today’s economy, cross-border payments involve a highly fragmented set of activities by banks in multiple countries. This process is troubled with inefficiency which results in high fees, limited transparency, and long settlement times.

Corda’s Solution – Companies can custody and move digital assets directly between entities and across borders to meet their capital and liquidity needs. Bank

s can also create new services to address potential revenue losses from traditional payment services.

  • Reconciliation . A vital part of a firm’s day-to-day operations, reconciliation is also notoriously complex, labor-intensive, and error-prone.

Corda’s Solution – Delivering an immutable ‘single source of truth’ for multiple parties. Transactions are cryptographically signed and stored only by relevant parties to prevent exposing sensitive data.

- Global Trade . Cross-border trade is a complex industry, involving numerous parties in multiple jurisdictions, creating inefficiencies and industry-level challenges. Technology has long threatened the ‘digitization’ of trade, but few solutions have achieved repeatable digitally executed transactions.

Corda’s Solution – Transactions are completed directly between relevant parties, enabling direct, digital issuance and exchange of negotiable trade documents across networks. Each transaction is recorded sequentially and indefinitely, providing an indelible audit trail throughout the lifecycle of an asset.

- Fraud Detection . As of today, it is still difficult to detect fraudulent activities that spread across multiple institutions. Parties are unwilling to share data with one another fearing that data could be leaked or abused.

Corda’s Solution – SDK, Corda’s confidential computing that protects sensitive business data in use—multi-party data can be processed to detect fraud without revealing the underlying data to anyone.

But really, why choose Corda?

In reality, some companies do start on public blockchains, but as they grow their production demands capabilities such as privacy, security, scalability, regulatory compliance, and ease-of-integration with existing systems. All these capabilities are native to Corda, let’s see how:

  • Privacy . Public blockchain validates transactions with the public network, thus broadcasting sensitive information to all participants. Corda’s design shares data only between the counterparties of a transaction, creating a communication protocol invisible to the other members of the network.

  • Development . Public blockchain requires low-level code or specialized languages with custom tooling and sparse libraries. Corda’s design creates smart contracts that are legally bound and written in any JVM compatible language, taking advantage of the vast ecosystem of tooling and libraries.

  • Regulatory Compliance . A public blockchain is not architected with industry standards or regulations in mind, and today new digital assets such as crypto cannot be traded by institutional investors. Corda’s capabilities are grounded in legal constructs and compatible with existing and emerging standards and regulations.

  • Scalability & Sustainability. In public blockchain scalability and sustainability are sacrificed for network-level consensus, and the approximate energy of watts consumed per Ethereum transaction is 17,222,222. In Corda’s design, P2P architecture enables high levels of network scalability and throughput. Transactions don’t need to be sequential, increasing the overall efficiency of the system. Approximate energy or watts consumed per transaction: 24.6.

  • Settlement. Public blockchain uses consensus models that settle probabilistically and can ultimately be walked back. Corda’s blockchain design consensus model guarantees that assets have deterministic settlement finality because it is based on validation and uniqueness.

  • Security. A public blockchain is completely open, so anyone can join and participate as an anonymous actor on the network raising security concerns. In Corda’s blockchain design to participate in a CordDapp, each entity must be granted access to do so and tied to a legal entity.

  • Resources . Public blockchain doesn’t provide you with resources. In Corda, anyone can connect with Corda developers and enthusiasts online through chats, forums, meetups, events, and much more.

Grow your skills and connect with developers on open-source projects sharing the same interests through our online forum. Enhance your projects with SDKs, CorDapps, and plugins, cloning and learning from sample Corda distributed applications. Dig into featured insights, resources, and content from R3 with our blog, videos, and collateral.