DTCC to use blockchain on $11 trillion derivatives market

$11 trillion in derivatives are getting closer to the blockchain with the help of DTCC 
21 October 2017   1441

DTCC, the company that today settles the lion's share of U.S. securities, is moving forward blockchain.

The company reports that it has completed an early version of a blockchain that could one day support the trade of $11 trillion-worth of credit derivatives, as detailed by in an exclusive interview with coindesk.com. 

At first, the goal of the project was to upgrade the infrastructure underpinning the DTCC's centralized Trade Information Warehouse (TIW) for over-the-counter derivatives, reducing the time it takes to clear derivatives trades. In order to do that, the company teamed up with IBM, R3 and Axoni. Now, the partners are turning their attention to testing it, and preparing it for migration of the TIW data in a compliant way.

"The exciting thing is that there's continued comfort in the progress of the overall application and environment. There are always challenges, but we call it the 'noise of progress'."
 

Rob Palatnick
DTCC's chief technology architect

The man also reveals that Axo's AxCore protocol was originally derived from the public Ethereum blockchain, and that the DTCC's system uses the same Solidity smart contract language that powers its applications.

Still, AxCore has been modified to include a modular consensus mechanism that lets it tailor services to the specific needs of the DTCC, as well as submit real-time reports to both regulators and other counterparties. Unlike Ethereum, the DTCC implementation of AxCore does not include a token.

As reported, currently, the DTCC is working with regulators to align Axoni's built-in reporting database with regulatory requirements. According to Palatnick, the reports have to be as good as existing ones, but will be available on a continual basis as a result of the smart contract functionality. On top of that, the company is working with R3 and its network of over 100 global financial institution members to learn from standards-making bodies how to create "standards around what data should look like on a distributed ledger".

Following the launch, Axoni is to open-source the Axcore protocol.

DFINITY to Postpone Internet Computer Launch

The project is currently assessing the time frame for the completion of the MVP
14 December 2018   88

The blockchain project Dfinity reported in its blog postponing the launch of its main product.

Previously, Dfinity chief scientist Dominic Williams said that his company intends to create an “Internet computer that will become cloud 3.0”, compete with Google Cloud and Microsoft Azure, and also change the face of the blockchain industry.

According to him, the project team is developing a technology that has 150 higher performance than Ethereum blockchain and 900 times - Bitcoin. In essence, the project creates a “giant Internet computer”, whose work will be supported not by one company, but by all participants of the Dfinity protocol.

Initially, the release of a minimum viable product (MVP) was planned for the first quarter of 2019. However, according to company representatives, working on a trimmed version may slow down progress in creating a complete product.

The project is currently assessing the time frame for the completion of the MVP. Also, noted in Dfinity, before the end of the first quarter a new set of development tools (SDK) will be released, which will shed light on the future plans of the company.

In August, the Dfinity Foundation attracted $ 102 million of investments in the framework of a closed tokensale. Prior to this, at the beginning of the year, the Dfinity Foundation raised $ 61 million from Andreessen Horowitz and Polychain Capital.