Four years ago it might have seemed unthinkable, but now is becoming a reality – tokens can appear on the platform from Corda R3.
Representatives of Cordite, R3 is independent from community open source, creating decisions solely on the basis of Corda, soon will present its development. Cordite promises to do for corporate blockchains that have made the standard ERC-20 for Ethereum allow the creation of tokens representing the various asset types in the same network. The only difference is that Cordite is specially designed for the banking industry. It is therefore not surprising that the main participant and leader of the community project Royal Bank of Scotland (RBS) is one of the 30 largest financial institutions in the world.
The same as ERC-20 triggered a boom of primary placements of tokens (ICO), allowing start-UPS to work around the world, to circumvent the usual obstacles in raising funds and attracting billions by issuing new tokens, Cordite will allow you to create many of the assets traditionally held and traded regulated agencies.
Richard crook (Richard Crook), head of technological development at RBS, said:
«When we move to the next level of distributed applications in a corporate environment, these registries will need the tokens and the cost unit».
Kruk gave an example: «If I create a platform for documentary transactions, when the account goes one way, I need a digital asset, which in the opinion of all parties is of some value».
It has its own irony.
The international blockchain-R3 consortium was founded in 2014 to be friendly to the regulation provider of open registers, which would be far different from cryptocurrency networks with their «anarchic» approach to management.
But now, thanks to this new project, the flagship software Corda R3 launch ICO technically possible, though unlikely. Cordite is positioned as a response to a number of challenges facing the developers of technology are distributed registry (DLT) within banks and other companies.
The emergence of corporate tokens in Corda have enough stress period of the existence of the R3, which was the subject of speculation of various degrees regarding the financial health of the organization.
But whatever the truth about the financial status of the consortium, the emergence of such initiatives as Cordite, suggests that around advanced technology R3-growing vibrant community of open source. According to R3, Cordite is just one of many «CorDapps», which will be released soon.
This is confirmed by the crook of RBS – he said that Cordite was already at a certain stage of development, when the Bank joined the project. The organization contributed to the development of about 6 months ago and found the answers to many of the problems facing companies that create DLT projects.
«I’m not going to call them, but these are the same companies that are members of R3 and contribute to Cordite» he said, adding that the project remained in a closed alpha mode for the last six months, because all the participants wanted to get right to testing.
Cordite is one of several examples of how corporations are experimenting with Fiat money in distributed registries in one form or another. In addition, some very large firms consider internal tokens as a way of uniting their accounting departments or to transfer money around the world without currency conversion.
However, in addition to potential efficiency gains, crook believes that tokenization is key to the health of the distributed registries in the industry. A representative of RBS notes that, first, the token will give the possibility to distribute the costs among the members of the emerging corporate world of the block chain.
«In DLT projects some parties provide services while others use them», — he said. «People who provide services should receive remuneration from those who use them».
Broader uses of technology intersect with the traditional banking world. For example, with the standard method of presentation of the Bank’s deposits in the form of digital tokens. And of course, the introduction of the equivalent of ERC-20 in Corda means the sale of tokens.
«Technically you could do if you want,» said crook, adding that a similar application of the technology for public duties is not particularly interesting.
However, token has some ability to raise capital within the Bank. For example, under the trade debt and ordinary shares in banks may be considered the issuance of debt or equity interests in the form of digital assets.
«This is no different from the principles of the market ICO, and can lead the industry into a height adjustable region,» said Kruk. «You now have the ability to do what you are doing with ICO to create digital assets that are transferred around the world without documents and everything else — but through the regulated utility».
Digital mutual company
Another option for the token use Cordite, which RBS and NatWest are going to study is the concept that a crook named digital mutual companies.
In a recent blog post titled «the Return DAO» crook compared decentralized Autonomous organizations with mutual companies owned by their members. The profit of such organizations is usually reinvested into the improvement of its work. Historical examples of such companies are construction companies in the UK and the company’s joint savings and loans in the United States, and also of a mutual insurance company.
Crook argues that Cordite «can provide the membership the opportunity to submit proposals and vote, which will create a mutual society in the blockchain».
Digital mutual company in the concept Kruk may require new forms of legal structure in which ownership, management and control laid down in the code. However, some aspects of the existing set of rules become unnecessary (e.g., the annual meeting of shareholders is not necessary).
However, they can also focus on existing legal structures — cooperative society, building societies and credit unions that do not require regulatory and legislative changes.
The issue of regulation it is worth noting that the crook and his team at RBS was behind the creation of the prototype report on the granting of mortgage loans in the Corda database, developed in collaboration with the Office of financial supervision of great Britain.
Crook has hinted that the new initiative can also receive support from the regulator:
«The FCA may also be interested in the concept of digital mutual companies, but that’s another story.»