LedgerConnect is the new face of blockchain that will make it easy for banks to leverage the advantages of distributed ledger technology. Barclays and Citigroup are the founding members, and the software partner is IBM. Utilizing the proof of concept consensus in total nine financial institutions have come together in a partnership.
The service vendors who power the LedgerConnect are Calypso, IBM, MPhasis, Baton System, SynSwap, Copp Clark, OpenRisk, and Persistent Systems. LedgerConnect focuses on eliminating the cost and complexity involved in developing individual distributed networks, making it easy and quick for banks to access blockchain applications through its App Store.
LedgerConnect runs on Hyperledger at a core level. As a permissioned blockchain of IBM, LedgerConnect has blockchain App store that is based on HyperLedger architecture. Developers have been working on the technology behind LedgerConnect for quite some time and have rigorously tested it, making it much more advanced than a PoC.
Looking at the potential LedgerConnect offers, JPMorgan and Goldman are expected to be part of the platform soon. As per Komarraju, lots of banks are awaiting the PoC to complete and approvals to take place.
PoC fatigue has been a significant deterrent for many banks to onboard the blockchain technology. But as IBM has done its share of market analysis, Bear says that PoC fatigue has come into place only in business areas where the business idea did not require blockchain for thriving or where the cost and complexity were growing.
LedgerConnect has effectively addressed both cost and complexity challenges; consequently, it positions the banking sector as an ideal candidate for adopting blockchain technology and unlocking substantial advantages. Moreover, this development represents a transformative shift that aims to bridge the gap between fintech firms and technology companies through a dedicated blockchain app store.
