Weekly blog: Block chain & the financial sector, the latest developments | "R3 CEV building on Concord's platform"

R3 CEV is a startup that works with dozens of major banks on a new infrastructure for the financial sector on the basis of block chain. Block chain enables transactions to be registered without the need for a third party is needed. That particular company has applied for a patent and that shines some light on the project where R3 a year working on it.

Concord the company is called; it is named for the harmony that it hopes to bring between sixty banks that cooperate, including the Dutch bank ING. In 2015 R3 started the project, of which we now get more information for the first time. The aim of the company is to create a number of new standards for financial services, which are based on block chain. Concord seems a bit like the Bitcoin, though there are some distinct differences which Concord wants to use to be attractive for banks.

Universal platform

Concord wants to be a universal platform between banks. The intention is that the so-called middle- and back-office functions - for example, the settlement of transactions, the recording of various activities and keep track of your balance – allows for more efficiency. Another difference between Concord and Bitcoin is very clear: Concord does not have its own currency.

If everything works as R3 wants, Concord can help streamline cumbersome operations and reduce associated costs. It can save billions according to The Wall Street Journal. Which is interesting, because the banks are under considerable pressure. After the crisis there are several rules introduced to make it more difficult for banks, said David Rutter, founder and CEO of R3. "It is difficult, if not impossible for these large banks to cut costs in a significant way."

The intention is that Concord is launched in the coming months. Some banks may start the service in early 2017 and mid-year tests would R3 bring an alpha version on the market.

Concord vs. Bitcoin and Ethereum

Concord looks somewhat like Bitcoin, but also like Ethereum. Ethereum is a branch of Bitcoin, which you can build and host via the platform apps with block chain. Concord is like Ethereum a platform that lets you build and you can close contracts smart applications. But the project R3 is specifically designed for financial institutions.

The biggest difference between the three technologies is the manner in which transactions are recorded. When Bitcoin and Ethereum is recorded every transaction, verified and stored directly public, so anyone can check it. At Concord each transaction will be verified and put in a so-called ledger, but it is not made public.

Linnie