The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.
All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.
Disclaimer
The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.
For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.
You can have a great look at something when you are either watching it from a vantage point or going through bottlenecks, plaguing innovation and sustainability. Why’d I say that, apparently, because something unprecedented had only happened when unfavorable circumstances have been put to test. And, seemingly, we are witnessing the same narrative building up in the private blockchain ecosystem.
Why’s that so? In case, you ask me that! Recently, a Cisco’s report has claimed that by 2027, blockchain’s potential could bring 10% of the world’s GDP on it. As someone who had been in the DLT space, it was an intriguing claim but also a hard to earn dream because the financial and banking markets have been walled to a standalone ecosystem for operations.
Breaking the Barrier Narrative: Stuck in Walled Gardens
For a 10% GDP on blockchain, it roughly amounts to $13 trillion. Or, put simply, it is the combined GDP of some of the top economies like India, Germany, and Japan combined. To reach such claims, one has to break the barriers of consensus model, algorithm, hashing and transaction, and interoperability. Why so? Because, to accommodate a 13$ trillion built on top of blockchains, keeping the financial and banking sectors out of the picture makes the dream difficult. However, the present state of technology in blockchains is such that these segments couldn’t standardize operations out of the fear of data breach and compromise of trade secrets.
In this article, we shall look at how that shall be changing in a larger context when private blockchains start upgrading according to the changing environment.
The 10% GDP Dream Through Composability and Interoperability
When blockchains introduced composability, it simplified operations within the same environment. However, in doing so, a key point of failure eventually surfaced in the form of different tech stacks changing transactions, consensus, jurisdiction, hindering interoperability, as a result with an alien environment. And, when you are talking of bringing the entire world on blockchains, an approach of getting pinned to the walls doesn’t appear sustainable. Hence, banking and financial sectors have been meshed in a complex maze which is non-communicative because of the above mentioned differences. This has caused two core problems;
UX or User experience has taken a severe hit because an asset, which is active in one ecosystem cannot be exchanged with another ecosystem. And in the world where we are increasingly connected through globalization, building solutions around walled-gardens could deter adoption.
The second aspect is restrictive development of cross-chain use-cases which is essential for solving the capital inefficiency problem. A deterministic factor when you are looking at building an interactive, composable, easy to deploy and operational ecosystem that could sustain the financing and banking market.
Now, to fix this chaos, the need for an unconventional approach is mandated that shall answer to risks like compromise of trade secrets, undue intervention in operational affairs, a single private network and amicability in running different applications on a common shared network that could streamline smooth movement of assets without capital locks and other challenges. Ideally, that’s what universal interoperability sounds like and fortunately the world of private blockchains is all set to introduce a new ecosystem that shall fix these long pressing challenges of interoperability and composability. In this ecosystem, banking and financial institutions would be the key stakeholders who would be benefitting at large with this solution when integrating blockchains in their operation.
R3 Corda and Harmonia: Changing How Banking and Financial Institutions Shall Function
Corda blockchain has partnered with Adhara to launch Harmonia which shall introduce true atomic settlements in the financial and the banking space. The POC has already been demonstrated by HQLAX and Fnality. In the POC, it was seen that two partner networks, HQLAx and Fnality could cross operate using the Corda blockchain & Harmonia ecosystem. In that, HQLAx wanted to settle their trades in high quality cash/fiat money, which was provided by Fnality.
The network participants used the Adhara Network for the transaction in which the transactions were automatically settled with no collateral required by FnPS or Fnality Payment System, which solved the capital efficiency problem in interoperability and the need for representation of cash/fiat was not mandated on HQLAX’s Digital Collateral Registry. Hence, an instant need for validation on both the partner network through capital locking was not triggered, saving protocols or applications built on blockchains in the banking and finance from fragmented liquidity risks. The intriguing part to note was how it was achieved?
Harmonia proposed victory over two core challenges: (i) Elimination of third parties that create a single point of failure obstructing interoperability. (ii) Second was to overcome the bespoke integration challenge when two or more systems want to interoperate. For example, bridges have backfired during cross platform swaps on public blockchains.
In this model powered by Adhara that triggered the swaps, the EEA standards were used via HyperLedger for targeting different blockchains. As you can see in the above image, the harmonia ecosystem is acting as a bridge with e-Money token standards and EEA cross-chain functionality.
In such a model, Adhara liquidity hub and a digital payment hub are in place to trigger actions across different locations for interoperability among partner networks. The participating networks can operate on Nivaura, Finteum, HQLAx and Fnality platforms to stimulate enhanced interoperability between partner networks, with Harmonia acting as a crossover for all chains with an open network stack capable of audit and having no monolithic standards, which means, any applications built in the financial and banking sector can interoperate with their partner network, without defining specific walled guidelines and models, obstructing interoperability.
Thus opening the doors for not just the private blockchains like Corda blockchains and others but even the public ones under the EEA alliance to interoperate. The open source general purpose framework as deployed by Hyperledger Cacti and YUI, a Hyperledger Lab, has acted as the base for building technology stacks that could easily interoperate with different blockchains, irrespective of their technology stacks and consensus models.
Banking and Finance Empowerment Through blockchains: A 10% GDP Contribution Likely Turns Real
Banking and finance want the best of both worlds: (i) The high level security of the public blockchains without compromising scalability (ii) Elimination of single point of failures which is often prevalent in private blockchains to ensure scalability. Since Corda blockchain has partnered with Harmonia association, it shall bring multiple projects as anticipated with the likes of DataChain, Progmat and multiple other names, the security and privacy concerns while dealing with a hybrid public-private model would be solved through R3 Corda blockchain and Harmonia fusion.
In addition to this, , Corda blockchain is introducing regulated entities (platforms like Fnality, HQLAᵡ and others) as well as the banks who are shareholders in those platforms, we can certainly hope that in the future there will be many contributors and some of those may be using other (non Besu/Corda) tech stacks. Hence Corda blockchain has envisaged a path-breaking interoperable blockchain village targeting every sector, not just finance and banking. Moreover, in all probabilities, we also see a multi-dimensional tech stack evolving which shall be making operations less monolithic and more inclusive of dynamism with respect to changing regulatory guidelines, safety standards, privacy concerns and developers compatibility.
About The Author
Dr. Ravi Chamria is co-founder CEO of Zeeve Inc, an Enterprise Blockchain company. He has an experience of 18+ years in IT consulting spanning across Fintech, InsureTech, Supply Chain and eCommerce. He is an executive MBA from IIM, Lucknow and a prolific speaker on emerging technologies like Blockchain, IoT and AI/ML.
Passionate About: Blockchain, Supply Chain Management, Digital Lending, Digital Payments, AI/ML, IoT
That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.
Zeeve is an enterprise-grade Blockchain Infrastructure Automation Platform. Join the growing list of clients that trust us with their Blockchain initiatives
In the bustling world of emerging technologies, blockchain is making a notable comeback as a pillar of trust and transparency. For all the hype cryptocurrencies generated, nothing much happened of them, with the noise causing a decline in the…
In the rapidly evolving digital landscape, the demand for seamless, secure, and user-friendly identity verification processes has never been greater. Know Your Customer (KYC) protocols are essential for financial institutions to comply with…
In the realm of digital transformation, public blockchain development services stand out as a beacon of innovation, offering unparalleled transparency, decentralization, and security. Unlike private blockchains that restrict access to authorized…
In recent years, blockchain technology has emerged as a disruptive force in a variety of industries, offering increased transactional security, transparency, and efficiency. One area where blockchain has enormous potential is freight claim…
The advancement of inventions that led to Web3 and blockchain has greatly changed the business environment. As stated by Forbes market research, in 2023, the total blockchain market is estimated to be around USD 170 billion; however, by 2030, it is…
In the dynamic world of cryptocurrencies, holding digital assets requires a robust and reliable solution, that is, a crypto wallet.
With the increasing number of cryptocurrencies, the need for efficient crypto wallet solutions has been greater than…
