Blockchain technology has a wide range of applications across industries. The startups working along those lines have been doing a great job so far. In one such recent development, Coinprism has introduced an open source permissioned ledger called Openchain.
The new Openchain distributed permissioned ledger is designed to fit in for those requirements where bitcoin blockchain is not enough. Openchain distributed ledger is created to meet the requirements of banks and financial institutions where the compliance requirements leaves a lot to be desired from bitcoin blockchain.
Even though Openchain can be anchored to bitcoin blockchain, it is a permissioned ledger as compared to bitcoin blockchain which happens to be a trustless public ledger. As we all know there are multiple banks and financial institutions that are currently involved working on finding ways to integrate bitcoin blockchain into banking operations but the compatibility and scalability issues posed by bitcoin blockchain has been an issue so far.
READ MORE: Blockchain Tech for Banking — 13 More Banks Join the Coalition
By using bitcoin blockchain, financial institutions can’t offer the kind of accountability as required by regulations. Also, bitcoin transactions are processed by unknown individuals, it is virtually impossible for the banks and financial institutions to vet every miner or transaction processed by them. Openchain overcomes these problems by providing required levels of control and privacy over the whole process.
Institutions and organizations can have their own versions of Openchain designed to replicate the organizational levels and employee in any particular level of organizational structure can communicate with the corresponding level on the ledger. In order to communicate with the ledger, the users will require a digital signature which will also act as an authentication protocol.
The Openchain also supports interorganizational transactions in a way similar to that of conventional financial transactions happening between multiple financial institutions. Multiple organizations can have mutual gateways set up to create a network. In addition to all these features, Openchain maintains levels of transparency, trust and security making it better than bitcoin blockchain for enterprise level applications. Developers can find the codes for Openchain on Github.