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. Focusing on eliminating the cost and complexity that is involved in developing an individual distributed network, the LedgerConnect blockchain App store will make it easy and quick for banks to get access to the applications.
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. The technology behind LedgerConnect has been under process for quite some time now and has been tested rigorously making it much advanced than 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.
With the establishment of LedgerConnect, the cost and complexity factors have been taken care of, and the banking system is the most suitable business case to onboard a blockchain and heap massive benefits out of it. It is a revolution that will bridge the gap between fintech and tech companies with blockchain app store.