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R3 engineers: “we don’t need” blockchain

blockchainBlockchain consortium R3CEV appears to have revealed that it is moving away from the technology that brought scores of major banks into its fold.

The utilisation and implementation of a purely blockchain-based system has never been on the cards at the firm, according to a presentation from R3 engineers seen on Reddit, which stated “no blockchain because we don’t need one”.

The discovery has lead to a certain level of mockery from the Bitcoin community, with claims that the consortium has done “an inside job” on Bitcoin. “R3’s got the right idea here; you do not need a blockchain for most FinTech stuff, and using one has serious disadvantages,” writes Peter Todd, Bitcoin Core developer, on the Reddit thread. “Better to use modular proof-based systems where Alice convinces Bob that something is true (like her house is now his) by giving Bob a set of signed and sealed proofs. Equally, I strongly suspect that’s how we’ll end up scaling on-chain transactions too.”

Unable to resist sticking the boot in, Todd adds: “Don’t let dogma blind you. R3 was the worst client I’ve ever had by far – they refused to pay ~$15k, sent me a cease and desist, and cost me a ton of money in legal fees, among other things – but that doesn’t mean their tech is bad.”

R3 Founder David Rutter wrote on the company’s blog: “Corda was designed from the ground up to address the specific needs of the financial services industry. There are currently very few tangible examples of distributed ledger platforms in the market – and none that were developed with over 70 global institutions from all corners of the financial services industry. It is unique and its launch was a landmark moment for the market.”

Teams at the consortium will be looking into way of adapting Corda and other platforms to industry protocols like AMQP, JDBC and PKIX. The firm is also hoping to create greater relationships with regulators.

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