A widely known consortium, R3’s network includes more than 100 international companies. The consortium was created in September 2015 by financial institutions in order to streamline multiple versions of technology platforms that struggled to operate together smoothly. The consortium has since collaborated within the industry in order to develop the largest team of its kind in the financial sector.
NH Bank plans to work with the group’s other members to collaborate on developments pertaining to the distributed ledger technology.
A bank official recently stated that they plan to obtain the technology by joining the consortium and then applying it to several divisions of the NH NongHyup Bank, namely the economic and financial sections.
The bank plans to pursue a pilot project in collaboration with FinTech firms, which will be aimed at commercializing the technology.
While new to the R3 Ledger Consortium, NH Bank is not a novice to the distributed ledger sector. The bank is already a member of South Korea’s new blockchain consortium, the main focus of which is to enhance the management of finance and trade processes by building relevant and essential tools. They want to develop solutions which would help them run the required operations optimally.
The other members of the new group include Yuanta Securities Korea, Dongbu Securities, and Kiwoom Securities.
What is a distributed ledger anyway?
Have you ever shared your online calendar with anyone? Ever shared the same document on your office’s network with your coworkers? If not, have you ever worked on an online document where multiple people were involved, and if one of them made any changes, they were reflected across all machines?
To simplify it further, once you make any changes to the albums on your iPhone, it automatically updates your Cloud so you can then see your updated files on all devices.
Now, take the aforementioned analogy and think of sharing that one calendar, document, or Cloud with thousands or millions of people at once. Seems difficult, huh? The goal of distributed ledgers is to make that work.
To summarize, a distributed ledger is a database that is shared across a vast network of sites, regions, and individuals. Everyone connected to the ledger has their own identical copy that is updated in real time. Whenever any changes are made, they are meant to be reflected across all platforms at once, ideally within mere seconds.
The concept of sharing dynamic, yet at all times, unified information sounds difficult, doesn’t it? That’s what makes the process so intricate and difficult for the people involved (hence the aforementioned consortium and why it’s a big deal for other companies to join it).
They not only have to share the ledger, but they also have to ensure that there are no delays in updates, that the security is top notch, and that the accuracy of the information provided through the ledger is stored cryptographically and securely so only the desired parties can ever have access to it.
Why is this related to me?
The distributed ledger technology is integral to blockchain, which is the core of operations for cryptocurrencies. Most advances in distributed ledger technology would also mean potential improvements for managing cryptocurrencies, which is why the community needs to remain updated with this particular technology.