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Two of the biggest names in the blockchain space could become partners.
R3 CEV, a leading blockchain innovation and development consortium group that has partnered with more than 40 financial institutions, and Ripple, a blockchain-based cross-border transfer firm, could join forces sooner rather than later, according to a tweet from Ripple CEO Chris Larsen.
Blockchain technology, best known for powering Bitcoin and other cryptocurrencies, depends on a distributed ledger that allows stakeholders to verify transactions without an intermediary. Blockchain is becoming more popular among financial institutions because of its potential to boost payments efficiency and security.
Ripple’s protocol could act as a transfer option for banks using Corda, R3’s proprietary distributed ledger platform, according to Bank Innovation . And Corda, in turn, could solve what R3 views as a security loophole in Ripple’s protocol.
R3 CEV said last July that Ripple’s transfer platform depends too much on third parties to verify transactions, which could create a significant security risk. Corda, however, restricts verification access only to parties directly involved in a transaction, which makes said transaction far more secure than a typical blockchain.
The partnership would also benefit Ripple, as the Corda integration could expand Ripple’s exposure to more banks while simultaneously increasing security. Blockchain tech benefits from a large network of banks, so this partnership could accelerate the real-time implementation of this tech throughout the financial world.Security is paramount as blockchain moves toward mainstream adoption. Most financial services companies are working with blockchain in some form, either through partnerships or independent innovation. But many of these companies have shown concern about security. Partnerships that alleviate these security concerns could convince those on the fence to adopt blockchain tech.Blockchain technology, which is […]
