We have always asserted that blockchain is an ecosystem-level technology that stands to bring about cost-related and operational efficiencies in interconnected systems, an exchange, for instance, perfectly fits the bill. We have come across three general approaches that enterprises consider towards realizing the potential of blockchain:
1. Partnering with a startup 2. Building an in-house team 3. Joining a consortium in order to realize blockchain.
A recent survey report released by LTP, in partnership with Infosys Finacle, shows that 30% of participants representing banks and financial institutions have taken the consortia route.
According to William Mougayar's (author of The Business Blockchain) December 2016 analysis, there are 25 global consortiums driving blockchain initiatives across industries. They have amassed a membership base of 550 in total while the average count of members stands at 25 per consortium.
R3CEV is a distributed database technology company which leads a consortium of more than 80 of the world’s biggest financial institutions in R&D of blockchain database usage in the financial system.
Ripple is a real-time gross settlement system (RTGS), currency exchange and remittance network by the company of the same name. The Ripple Transaction Protocol (RTXP) or Ripple protocol is built upon a distributed open-source Internet protocol, consensus ledger and native currency called XRP (ripples). It supports tokens representing fiat currency, cryptocurrency, commodity or any other unit of value such as frequent flier miles or mobile minutes.
Hyperledger is an umbrella project of open-source blockchains and related tools, which was started in December 2015 by the Linux Foundation to support blockchain-based distributed ledgers. It is focused on global business transactions, including major technological, financial, and supply chain companies. The project aims to introduce a variety of blockchains with their own consensus and storage models, and services for identity, access control, and contracts.
Digital Asset Holdings is a software company that develops and builds distributed ledger technology solutions for the financial services industry. Its software maps business logic and legal processes to cryptographic signature flows, as well as commits transactions to private or public distributed ledgers or traditional databases depending on the requirements of the use case. The company offers its software for various market segments, such as loans, securities, derivatives, and foreign exchange. It serves various customers, including banks, dealers, exchanges, central securities depositories, custodians, central clearing counterparties, and other critical infrastructure providers worldwide.
How are these platforms similar or different?
|Parameter||Hyperledger||R3 CEV||Ripple||Digital Asset Holdings|
|Membership Scheme||Tiered membership – Premier, General & Associate members||Flat membership||Regional membership clusters. Ex: RC Cloud in Japan||Sells software to banks, dealers, exchanges, custodians and clearing house clients.|
|Fees||$250k/year for premier, $5-50k/year for general, $0 for associate members||Flat advisory fee||Customized||Customized|
|Area of Focus||General purpose blockchain||General financial transactions & agreements||Payments||Capital markets – Post-trade settlement|
|Core Offering||3 Frameworks:</p>
IBM-Fabric, Soramitsu-Iroha and Intel-Sawtooth Lake </td>
|Corda, a distributed ledger for recording and managing financial agreements||Integration for corporate disbursements and retail remittances.||Digital asset platform which uses distributed ledger technology for mutualization of financial market data and processes across distinct market participants.</tr>|
|Investment Opportunities||Open-source collaborative effort, projects are funded by membership fees.||Yes, equity in spin-off company that would control Corda.||Backed by Santander Innoventures, Standard Chartered Bank, Accenture, Digital Currency Group among others.||Backed by JP Morgan, Goldman Sachs, ABN AMRO, BNP Paribas, IBM and Deutsche Borse, among others.|