Categories: CryptoNews

Major Banks Take First Steps Towards Creating Industry Standards For Blockchain Technology

In a rather surprising turn of events, the blockchain solution being developed by central banks will be made open source. This news came as a major surprise to cryptocurrency and distributed ledger enthusiasts. Corda, the big project under development by the R3 consortium, will be accessible to anyone in the world. Whether or not this will automatically turn it into a new financial infrastructure standard, remains to be seen.

Open Sourcing Corda Is An Interesting Decision

For the longest time, people assumed the Corda blockchain would be another solution that will continue to be locked behind closed doors. Even though this will not be a public blockchain, the code will be open sourced. This is a rather surprising turn of events, although it is clear that central banks want to establish some form of industry-wide blockchain standard.

In a way, this should be seen as a positive development. Open sourcing the code will allow for valuable community feedback while also inviting people to change the banking infrastructure first hand. Although not all suggestions will be taken to heart by the engineers, pointing out flaws is never time wasted.

While banks readily agree that distributed ledgers will make their systems more efficient, it will also lower the costs. This is one of the primary reasons why financial institutions have flocked to blockchain technology as of late. Unfortunately, most banks do their own little things, making it more difficult to even think about industry standards.

Related Post

According to Reuters, R3 Chief Engineer James Carlyle stated:

“We want other banks and other parties to innovate with products that sit on top of the platform, but we don’t want everyone to create their own platform … because we’ll end up with lots of islands that can’t talk to each other. If we have one platform with lots of products on top, then we get something that’s more like the internet, where we still get innovation but we can still communicate with each other.”

At the same time, this news does not mean that Corda will be a success by any means. Even though the project has the backing of several dozen major banks, there are still a lot of questions regarding the use of a blockchain without proof-of-work. After all, the goal is to remove any points of failure.  But what if the new technology presents an even bigger systemic risk?

A lot of money has been invested into this project, and only time will tell whether or not it was a smart business decision. Blockchain technology has a bright future across many different industries, including the financial sector. As is always the case, however, the first “generation” of proprietary technology may not check all the right boxes from day one.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Published by
JP Buntinx

Recent Posts

Ushering in a Brand New Ecology in Game: How Does HashLand Become a Vanguard to Guarantee Floor Value?

For some time in the past, Gamefi was criticized by many people as a lofty…

3 hours ago

Robinhood Shiba Inu Listing Not Happening This Year, Especially After the Recent Security Incident

With Robinhood's recent security incident that leaked over 5 million users' names and email addresses,…

4 hours ago

Loopring Price Down 10%, Is LRC a Good Investment for 2022?

There's no doubt that the cryptocurrency market has been experiencing a rough couple days. Loopring's…

5 hours ago

Here’s Why Precious Metals Belong in Your Portfolio

Whether you already have a large portfolio or you’re just getting started in investing, precious…

6 hours ago

Gala Price Doubles After Town Star Nodes Announcement

Gala price is up over 93% today, making it the biggest gainer on, followed…

10 hours ago

Shiba Inu Price Holding Support as the FUD Continues

Shiba Inu's price continues to hold the $0.000049 support level amid FUD from major news…

12 hours ago

This website uses cookies.