What is Corda Blockchain [Benefits, Architecture and Use Cases]

In this Blockchain tutorial, we will discuss what is Corda Blockchain. And we will discuss how it is different from a standard public blockchain. Moreover, we will also illustrate the following set of topics.

• What is Corda Blockchain
• Issues that Corda solve
• Who Developed Corda
• Does Corda use Blockchain
• Benefits of using Corda Blockchain
• Companies using Corda Blockchain
• Use Cases of Corda Blockchain
• Architecture of Corda Blockchain
• Introduction to CorDapps

What is Corda Blockchain

Before deep-diving into the new concepts related to Corda, let’s recall some of the key functionality of traditional blockchain.

Usually, a traditional blockchain solution consists of transactions and these transactions are grouped in a block. Each blockchain block is cryptographically linked back to its neighboring block, resulting in an immutable record of transactions.

However, the Corda does not work in the same way. It is designed and developed with a unique approach that offers all blockchain features without the need for a traditional blockchain with blocks.

Corda is a business-oriented open-source blockchain. It is used to create interoperable blockchain networks that allow for secure and private transactions.

And it utilizes smart contract technology to enable firms to interact directly with one another.

Moreover, it enables organizations to keep track of transactions in a shared ledger, eliminating the need for parties to double-check their transactions after interacting with one another.

Read Introduction to Blockchain Mining and read Introduction to Polkadot Blockchain

Issues that Corda solve

The Corda blockchain technology was initially introduced for the financial sector. And it is used to tackle the primary challenge of handling agreements and other types of contracts between individuals and a group of companies.

Usually, these companies trust each other enough to complete the transaction, but not enough to keep the same records.

So, these companies create their own ledger, which keeps track of their specific positions and agreements, as well as their customer base.

Now, such circumstance results in conflicts and operational risk between the businesses. Furthermore, data is replicated at each business, increasing the cost and complexity of administering individual infrastructures.

So, Corda aims to solve these challenges in the financial sector by introducing its decentralized database platform.

Initially, Corda started off focusing solely on the financial sector but has now grown to include other sectors as well like government, healthcare, etc.

Read Tokenization in Blockchain

Who Developed Corda

R3 is a blockchain software company that serves businesses. They have 200 members from various industries in their ecosystem.

R3 and the rest of the team developed the Corda platform and Corda enterprise platform for business use cases.

In 2014, the R3 blockchain consortium was founded. Over 180 skilled developers are now working on Corda’s development, with 350 companies investing in the project.

Members of the R3 blockchain consortium work on blockchain technology to transform the enterprise.

All of their global network of partners contribute equally to the development of various commerce and finance apps based on the Corda blockchain core software.

The Corda was first introduced in April 2016 and it become open source in November 2016. Whereas Corda Enterprise was launched in July 2018.

Corda Enterprise and Corda open source are both interoperable and compatible, and they share the same functionalities.

The enterprise version, on the other hand, is more focused on business requirements.

Read Introduction to Enterprise Blockchain

Does Corda use Blockchain?

By definition, Corda is not a blockchain because it does not use blocks to batch transactions. Nonetheless, it is a distributed ledger that offers all of the advantages of a blockchain.

In simple terms, Blockchain is a type of Distributed ledger but, this does not imply that all distributed ledgers are Blockchain. Similarly, Corda is a Distributed ledger technology that is quite similar to Blockchain.

Moreover, Corda is not based upon any other blockchain solution like Ethereum or Bitcoin. Corda was built from scratch with a novel approach for delivering all blockchain benefits without the need for a traditional blockchain with blocks.

It was written in the Kotlin programming language, which is a statically typed language that targets the Java Virtual Machine (JVM).

Read Introduction to Blockchain Oracles

Benefits of using Corda Blockchain

Till now, we got a brief introduction to the Corda Blockchain platform. Now, let’s discuss some of the primary benefits of using Corda Blockchain.

• Open Source: Corda’s open-source nature is one of its most notable aspects. And its source code is freely available under the Apache 2 license.
• Flexible: Corda is a flexible and agile platform that facilitates the fulfillment of business objectives. Organizations from any sector can easily move to a Corda enterprise based on their business requirements.
• Privacy: The Corda ledger has a completely encrypted transaction history. Everyone does not have access to transaction data. Only necessary parties have access to it. Moreover, it also allows hosting the nodes behind the corporate firewall, ensuring that their data is always protected.
• Open Development: Open development is made up of a large group of developers who are working on new features, functionalities, and improvements.
• Interoperability: Corda is available in both free and commercial versions and both can work together on a Corda network. Also, Corda is fully interoperable and compatible with other blockchain networks, allowing it to be utilized for transactions.
• Scalable: Corda is a scalable platform that can store and analyze data using a ledger.
• Cloud Support: Corda can be hosted on cloud platforms and is also feasible to set up with Docker for greater scalability and flexibility.

Also check out, Smart Contracts in Blockchain

Architecture of Corda Blockchain

Now, let understand the core architecture of the Corda platform and discuss the key components in the Corda architecture. The Corda network, state objects, transactions, consensus, and flows are the primary components of the Corda platform.

Let’s understand these components in detail.

Corda Network

A Corda network is a peer-to-peer network made up of multiple nodes. And each node is a separate legal entity that operates the Corda software.

It is a permissioned network that allows “need to know” direct peer-to-peer communication.

Unlike other typical blockchains, it does not utilize the global broadcast or gossip protocol. In this, direct communication takes place between interested parties on a point-to-point basis.

Moreover, the AMPQ serialization protocol is used to communicate between peers or nodes. And the publication of a list of peers is handled by the network map service.

Also read, Blockchain Uses Other than Currencies

State objects

State objects are the smallest data units that make up a financial arrangement. These are digital documents that specify and thoroughly encapsulate all information regarding a mutual agreement between two parties. These objects are either created or destroyed based upon transaction execution.

The contract code and legal prose are examples of state objects. Legal prose is optional, but it gives the contract legal bearing. Contract code, on the other hand, is required to manage the object’s state.

According to the business logic described in the contract code, a state transition mechanism for the node is required.

State objects include a data structure that represents the object’s current state A state object might be current or historic.

Transactions

Transactions are used to implement transitions between different
states. The concept of state transition through transactions is similar to that of Bitcoin.

Moreover, transaction processing in Corda is built on a UTXO-based approach similar to Bitcoin.

Transactions can have single, multiple, or no input and single or multiple outputs, similar to Bitcoin. Also, digital signatures are required for all transactions.

Furthermore, as Corda does not utilize blocks to store transactions in a blockchain, it does not use mining. Instead, notary services are utilized to order transactions in chronological order.

New transaction types can be created in Corda using JVM bytecode, making it extremely versatile and powerful.

Read Pros and Cons of Blockchain

Consensus

The process of consensus in Corda is relatively basic and based upon notary services.

In this method, the notary services are used to evaluate the transactions for uniqueness. And a transaction comes out to be unique then, consensus services sign that transaction as valid.

On a Corda network, there can be one or more clustered notary services. Notaries can employ a variety of consensus algorithms to obtain agreement, such as PBFT or Raft, but the basic principle is to see if a proposed transaction is a valid ledger update or not.

In Corda, there are two types of consensus:

• Validity consensus: The main purpose of this type is to assure that every input and output state’s contract approves the proposed transaction. Moreover, it verifies that all of the necessary signatures are present in the transaction.
• Uniqueness consensus: The method is used to identify double-spend attacks and verifies that a transaction has not been spent before and is unique. Only a notary service can verify uniqueness consensus. Validity consensus, on the other hand, is validated before a transaction is signed by each needed signer.

Flows

Flows in Corda Blockchain technology are a unique concept that enables the creation of decentralized workflows.

These flows handle all communication on the Corda network. These are code-based transaction protocols for defining any financial flow of any complexity.

Flows interact with other nodes and users and run as an asynchronous state machine. They can be stopped or resumed at any time throughout their execution.

Read Digital Signature in Blockchain

Use Cases of Corda Blockchain

Till now, we got a clear Idea about the Corda Blockchain technology and how it’s different from the traditional blockchain. Next. let’s understand some of the main uses cases of Corda Blockchain.

1. Finance

The finance sector has been the most active user of blockchain technology. The finance industry can use Corda to establish a channel to secure consumer data and conduct quick transactions. Increased operational efficiencies, lower operational costs, and faster processing times will benefit the entire network.

Moreover, features like transparency and immutability of data will help promote confidence among institutions.

2. Healthcare

Healthcare is one of those areas where there is a lot of room for improvement. Currently, the use of blockchain technology in healthcare is steadily transforming the industry. Corda can improve healthcare solutions by providing the essential tools.

The healthcare industry recognizes the need for a blockchain since even the best healthcare systems can become fragmented. Increased fraud, sluggish claims processing, and poor patient care are all consequences of fragmentation.

A Corda blockchain will allow systems to communicate with one another and give a complete patient profile without the requirement for a third-party validation service.

Also, Corda’s use in healthcare translates to better claims management. Insurance claims take a long time to process. The healthcare and insurance industries can improve customer satisfaction by implementing Corda.

3. Supply Chain

Every industry relies on a well-functioning supply chain. Although supply chain management works well in some situations, it is often affected by inefficiencies.

It is possible to have real-time accurate asset location monitoring with DLT, such as Corda blockchain for the supply chain. And it can help to resolve most supply chain difficulties, such as oversupply, undersupply, and fraud.

4. Digital Assets

Digitalization is also an important aspect of the future’s development. With the rise of digital assets, businesses must employ a blockchain solution that can handle the transformation, storing, handling, and processing of those assets efficiently.

When it comes to managing digital assets, Corda is an excellent choice. It can assure correct transactions by enhancing scalability, security, and trustworthiness in the management of digital assets.

5. Digital Identity

Nowadays, digital identification is a major concern as anyone can easily replicate a digital identity and steal data.

Companies need to ensure that they have enough security measures in place to protect the personal data of their consumers.

Still, the existing method is not the best, it has issues with data management and disclosing personal information.

Now, the adoption of a blockchain solution for digital identity is one of the best options.

Moreover, companies can improve the efficiency and reliability of their digital identity management by utilizing Corda.

Digital identity verification, collecting, and other management lifecycle duties can all be handled by it.

Read Cryptography in Blockchain

Companies using Corda Blockchain

Now that we have a clear idea of what Corda has to offer and also the use of its cases. It is time to take a look at some of the companies that are using Corda.

• HSBC: HSBC is a banking and financial services company situated in the United Kingdom with 224652 employees and $71.20 billion in revenue.
• CitiBank: CitiBank is a banking and financial services company based in the United States with 239000 employees and $76.40 billion in sales.
• Banco Bradesco: It is a Brazilian banking and financial services company with 108794 workers and $74 billion in revenue.
• MetLife: It is a US-based insurance company with 49000 workers and $67 billion in revenue.
• China Merchants Bank: It is a China-based banking and financial services firm with 84683 employees and $58.40 billion in sales.

These are some of the financial enterprises that started using the Corda platform in some way or other to achieve their business goals.

But this is not the end, companies like Master Card, BlackRock, and many others have invested in Corda.

Moreover, there are many companies from other sectors as well are investing in the R3 for a blockchain solution. For example, Microsoft, Intel, etc.

Read Decentralized Applications in Blockchain – DApps

Introduction to CorDapps

CorDapps stands for Corda Distributed Applications. As its name implies, the CorDapps are distributed applications based upon Corda, and these applications run on the Corda network.

It enables network nodes to reach a consensus on ledger modifications. And flows, which describe a routine for the node to run, are defined for this purpose.

The fundamental model in Corda consists of state objects, transactions, and transaction protocols, which are bundled with contract code, APIs, wallet plugins, and user interface components to develop a Corda distributed application.

You may like the following Blockchain tutorials:

• Methods of Decentralization in Blockchain
• Decentralization in Blockchain
• Consensus in Blockchain
• Types Of Blockchain
• Blockchain Architecture
• What is Cardano Blockchain

So, in this tutorial, we have learned about Corda Blockchain technology. And we have discussed how it is different from a standard public blockchain. Moreover, we have also illustrated the following set of topics.

• What is Corda Blockchain
• Issues that Corda solve
• Who Developed Corda
• Does Corda use Blockchain
• Benefits of using Corda Blockchain
• Companies using Corda blockchain
• Use Cases of Corda Blockchain
• Architecture of Corda Blockchain
• Introduction to CorDapps