R3 Corda: Distributed ledger for Fintech applications

Anton Sitnikov Chief Software Architect, Exactpro

GDG DevFest, Tbilisi
08.09.2019

Youtube Channel https://www.youtube.com/c/exactprosystems
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Transcript

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2. R3 Corda: Distributed ledger
   for Fintech applications
   Anton Sitnikov
   Chief Software Architect,
   Exactpro LLC
   

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3. Exactpro
   • A specialist firm focused on functional and non functional testing of
   exchanges, clearing houses, depositories and other market infrastructures
   • Incorporated in 2009 with 10 people, our company has
   experienced significant growth as satisfied clients
   require more services; now employing 550 specialists.
   • Part of London Stock Exchange Group (LSEG) from May 2015 till January
   2018. Exactpro management buyout from LSEG in January 2018.
   Headquartered in UK, with operations in US, Georgia and Russia.
   • We provide software testing services for mission critical technology that
   underpins global financial markets. Our clients are regulated by FCA, Bank
   of England and their counterparts from other countries.
   

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4. DLT alliances
   

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5. Corda
   ● A Corda network is an authenticated peer-to-peer network of nodes, where each node
   is a JVM run-time environment hosting Corda services and executing applications
   known as CorDapps.
   ● All communication between nodes is direct, with TLS-encrypted messages sent over
   AMQP/1.0. This means that data is shared only on a need-to-know basis; in Corda,
   there are no global broadcasts.
   ● Corda networks are semi-private. Each network has a identity service that enforces
   rules regarding the information that nodes must provide and the know-your-customer
   processes that they must complete before being admitted to the network.
   

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6. Corda
   1
   6
   7
   5
   2
   3
   4
   9
   8
   

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7. Network and Identity
   • Identities are attested to by X.509
   certificate
   • Well known identities are published in
   the network map
   • Confidential identities are only shared
   on a need to know basis
   

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8. State
   CASH
   CONTRACT
   REF
   PARTICIPANTS
   Alice
   Bob
   CASH STATE
   PROPERTIES
   OWNER:
   AMOUNT:
   CURRENCY:
   Alice
   10
   USD
   

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9. State sequence
   NO CASH GEL 100 GEL 50
   2019-02-01 timeline 2019-02-24
   HISTORIC
   

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10. Vault
    BHEAD
    CHEAD
    AHEAD
    SHEAD
    B1
    A3
    S2
    B0
    A2
    S1
    A1
    S0
    A0
    HISTORIC
    CONSUMED HISTORICAL STATES UNCONSUMED
    HISTORIC
    HISTORIC
    HISTORIC
    HISTORIC
    HISTORIC
    HISTORIC
    HISTORIC
    HISTORIC
    

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11. Contract
    CASH 0
    CASH
    CONTRACT
    CASH 1
    BOND 1 BOND 2
    BOND
    CONTRACT
    REFERENCES
    VALIDATES
    REFERENCES
    REFERENCES
    REFERENCES
    VALIDATES
    CASH COMMAND
    BOND COMMAND
    

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12. Transaction
    • Is identified by a hash
    • Is atomic
    • Can have multiple input states
    • Can have multiple output states
    • Should have at least one command
    CASH 0 CASH 1
    BOND 0 BOND 1
    TRANSACTION
    SIG 0 SIG 1
    

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13. Transaction validity
    • Transaction validity: For both the proposed transaction, and every transaction in
    the chain of transactions that created the current proposed transaction’s inputs:
    ▪ The transaction is digitally signed by all the required parties
    ▪ The transaction is contractually valid
    • Transaction uniqueness: There exists no other committed transaction that has
    consumed any of the inputs to our proposed transaction
    

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14. Notary
    • Notaries provide uniqueness consensus which prevents “double-spends”
    • Notaries may optionally also validate transactions
    • A network can have several notaries, each running a different consensus algorithm
    

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15. Persistence
    ● Vault is stored in relational database
    ● States are persistent as blobs, AMQP serialized
    ● State fields can be extracted to database columns
    

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16. Flows
    INITIATOR
    GET DATA
    FROM
    INTERNAL
    SYSTEM
    CREATE
    TX
    RESPONDER
    INSPECT
    AND
    VERIFY
    TX
    SIGN
    TX
    COMMIT
    TX
    END
    INSPECT
    AND
    VERIFY
    TX
    COMMIT
    TX
    END
    SEND (TX+SIG)
    SEND (TX+SIG)
    FLOW SUSPENDED AND CHECKPOINTED
    

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17. Questions?
    

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18. Thank you!
    

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