Corda is the solution to all frictions in blockchain business by not only delivering on the great early promise of blockchain technology, but also addressing business needs for interoperability as well as privacy. For example, it enables businesses to transact directly by removing the costly friction involved in any business transaction. In addition, it guarantees all business parties that they are always aligned, which in turn enables dramatic business efficiency benefits in a complex business.
To understand what the Corda project is all about, let’s take a deeper look at what it entails, its benefits, and how it achieves the privacy it promises.
What is Corda?
In short, Corda is an open source blockchain business project designed by the R3 community. Being the result of a collaboration between technology partners and financial institutions, Corda was designed specifically for business from the ground up to serve a variety of purposes. These include:
Integrate directly into the organization’s systems.
Enable rapid implementation of the new process.
Enable a smooth transition to new processes.
As a platform, Corda does not have any cryptocurrency embedded in it, but rather one that controls existing and proven infrastructure and technology. As such, Corda does not require consensus on a mining style. Such results lead to the presence of large costs associated with small business benefits.
Advantages of Corda in the Blockchain world
Based on its aforementioned designed purpose, the blockchain world should celebrate Corda—because it has brought more positive impacts in the blockchain world. The main ones are:
Allowing parties to transact directly – With its modern cryptographic techniques, Corda has ensured that the direct transfer of value can occur efficiently and that systems are in agreement. This in turn helps to remove costs which consequently facilitates and drives the presence of direct transactions between the involved parties.
Securing and maintaining privacy over transaction history – Since preserving privacy and ensuring integrity and validity is a major challenge in the blockchain world, Corda has another reason to celebrate as it offers a solution to the challenge. Through its various techniques, Corda ensures both the validity and integrity of transactions – confirming competing and conflicting transactions in the transaction history. When doing the above, Corda also makes sure to maintain privacy.
Ways Corda achieves privacy
Securing and maintaining privacy as one of Corda’s main strengths in the blockchain world, it does so through:
Full encryption – For this it targets peer-to-peer network.
Randomization and key rotation – Will do this in combination with automatic identity management when the goal is to de/anonymize transactions.
Intel Software Guard Extensions – Through these, Corda will enclave the technology and consequently allow records to be verified at the same time and remain encrypted for all parties involved.
Transaction Structuring – Corda will structure transactions in a Merkle tree which in turn helps it to allow only selective information disclosure.
With expensive frictions being a popular and common occurrence and challenge in business, there is a need for the blockchain world to embrace Corda as a solution only if they are to witness great performance. Corda will remove such frictions and in turn will have advantages aligned with the blockchain world, such as the presence of a direct transaction between parties and maintaining privacy over transaction history. As such, there is no doubt that Corda is the right solution in the blockchain world.