Coinprism Releases Openchain, an Open Source Distributed Ledger Targeting Financial Institutions

Blockchain technology company Coinprism has released Openchain, an open source distributed ledger, targeting financial institutions. Here is a quick summary of the features of Openchain published in the press release:

  1. Instant confirmation of transactions
  2. No mining fees
  3. Extremely high scalability
  4. Secured through digital signatures
  5. Immutability: Commit an anchor in the Bitcoin Blockchain to benefit from the irreversibility of its Proof of Work
  6. Assign aliases to users instead of using base-58 addresses
  7. Multiple levels of control:
  • Fully open ledger that can be joined anonymously
  • Closed-loop ledger where participants must be approved by the administrator
  • A mix of the above where approved users enjoy more rights than anonymous users
  1. Hierarchical account system allowing permissions to be set at any level
  2. Transparency and auditability of transactions
  3. Handle loss or theft of private keys without any loss to the end users
  4. Ability to have multiple Openchain instances replicating from each other

Speaking about Openchain's launch, Flavien Charlon, founder and CEO of Coinprism, explained: "Traditionally, settlement of a transaction happens some time after the trade happened. For example, three days for stock trading. With Openchain, it is possible to handle the trade and the settlement as a single operation, reducing both costs and counterparty risks."

Unlike bitcoin, Openchain will enable users to deploy their own version of the chain, allowing them to potentially cut costs and reduce settlement time. Explaining the difference between Bitcoin and Openchain, Charlon said, Public ledgers like Bitcoin have been problematic for financial institutions as transaction validation is delegated to a group of potentially unknown parties – the miners – while financial institutions are often legally required to vet every transaction going through them. Openchain has been designed with these requirements in mind, and offers full control on transaction validation.

The type of assets that Openchain is designed to handle is one of the core differences between bitcoin’s blockchain and Openchain. "The entire design of bitcoin comes from that requirement, with proof-of-work being at the core of that design. We certainly appreciate the incredible innovation around proof-of-work and censorship-resistant assets, but when banks talk about blockchain technology, they are really not interested in censorship resistance", Charlon said.

Another important difference mentioned by Charlon is the way in which Openchain deals with transactions to avoid confirmation delays: "Openchain gets rid of blocks, and chains transactions directly to each other, which means you can get instant transaction confirmation." While Bitcoin processes a handful of transactions per second, Openchain offers a scale with virtually instant validation.

Openchain allows each institution to deploy its own version of Openchain for internal use. Using their unique digital signatures, each level of the organization can transact on the corresponding level of their Openchain. Higher levels of organization are able to set permissions for lower levels.

Similar to bitcoin's blockchain, Openchain is both fully transparent and auditable. Anyone can receive a real-time copy of the transactions being validated. Digital signatures guarantee the security.