7 Multi-Billion Dollar Banks Leave R3, Controversial Discussions

Corda Blasted as R3 Fail Funding Goals

Several multi-billion dollar banks including Goldman Sachs, Santander and Morgan Stanley have officially left the R3 blockchain consortium, an organization established by R3CEV to concentrate on the development of industry standard blockchain-based systems.

R3 CEV Wiggle Up Sees Member Banks Leave Consortium

A few days after Goldman Sachs’ bailout was announced, internal sources close to R3CEV exposed in a leak sent to Epiphyte CEO Edan Yago that JP Morgan, Macquarie Group, US Bancorp and National Australia have also opted out in the upcoming fundraising initiative of R3, solidifying their stance on R3 blockchain development.

As the founding members of the consortium, these seven banks have made significant contributions in the development of R3 and its existing blockchain-based systems like Corda. In spite of the absence of Goldman Sachs and other major banks, R3 still secured US$ 56.Five million in its latest fundraising initiative to fund its operations across 2017.

Big Funding, No Working Product

Respected cryptographers and bitcoin investors including Bitcoin Core developer Peter Todd and DCG CEO Barry Silbert intensely criticized the R3 consortium in the past week, primarily due to their inability to evaluate criticisms, impractical treatment to open source technologies and failure to present successful cases of their systems.

Over the past two years, the R3 consortium received hundreds of millions of dollars in funding to finance its operations. Yet, the organization’s technologies including the R3 Corda are yet to be integrated into any one of its member bank’s financial platforms or networks, suggesting its limitation in applicability and plasticity.

More importantly, Peter Todd recently emphasized that R3 refused to open source Corda, entirely contradicting its previous announcement on October 20. During a Reuters special interview, executives from the R3 consortium stated that the organization intended to develop Corda as an open source blockchain platform.

R3’s chief engineer, James Carlyle further stated: “We want other banks and other parties to innovate with products that sit on top of the platform, but we don’t want everyone to create their own platform … because we’ll end up with lots of islands that can’t talk to each other.” In the same interview, R3 CEO David Rutter also noted that he dreamed to prevent banks from “blindly investing millions of dollars in petite, disparate technology projects.”

Furthermore, Peter Todd confirmed on November twenty five that R3 vetoed one of its member banks from hiring him to carry out a thorough review process and evaluation of Corda. Todd went on to explain that R3 is allergic to criticisms, claiming that he received a cease and desist letter.

However, James Lambert, an associate at R3, announced on November twenty five that the R3’s Corda platform would be open-sourced under the Apache two license from November 30.

“We will, of course, also be developing a commercial version of Corda for those who need specific enterprise features and support, but the open source codebase is the foundation of everything we do,” said Lambert.

Experienced Criticism From Core Bitcoin Engineer

After Corda was open sourced, developers like Todd looked closely into the code and formed a plain conclusion:

It’d be risky to deploy Corda in production right now, as there aren’t clear definitions of what the consensus parts of it actually do.

Todd went on further to criticize the lack of transparency in the Corda network as well as its unnecessary complexity that has made the blockchain network more difficult to ensure high security measures. Todd noted:

Not once do the Corda docs talk about who actually is supposed to have access to keys; entire point of crypto is to know who did what!

Possibility of More Banks Leaving

According to Epiphyte CEO Edan Yago, there exists a strong possibility that more banks may leave the R3 consortium. He also stated that R3 was seeking $150 million but as mentioned above, the organization only secured almost 33% of their initial investment plan.

“Sources inwards of R3 have told me that they or others are considering leaving. Overall sense of pessimism. Others still optimistic,” Yago stated.

What do you think about the latest events surrounding the R3 CEV project? Let us know in the comments below.

7 Multi-Billion Dollar Banks Leave R3, Controversial Discussions

Corda Blasted as R3 Fail Funding Goals

Several multi-billion dollar banks including Goldman Sachs, Santander and Morgan Stanley have officially left the R3 blockchain consortium, an organization established by R3CEV to concentrate on the development of industry standard blockchain-based systems.

R3 CEV Wiggle Up Sees Member Banks Leave Consortium

A few days after Goldman Sachs’ bailout was announced, internal sources close to R3CEV exposed in a leak sent to Epiphyte CEO Edan Yago that JP Morgan, Macquarie Group, US Bancorp and National Australia have also opted out in the upcoming fundraising initiative of R3, solidifying their stance on R3 blockchain development.

As the founding members of the consortium, these seven banks have made significant contributions in the development of R3 and its existing blockchain-based systems like Corda. In spite of the absence of Goldman Sachs and other major banks, R3 still secured US$ 56.Five million in its latest fundraising initiative to fund its operations via 2017.

Big Funding, No Working Product

Respected cryptographers and bitcoin investors including Bitcoin Core developer Peter Todd and DCG CEO Barry Silbert intensely criticized the R3 consortium in the past week, primarily due to their inability to evaluate criticisms, impractical treatment to open source technologies and failure to present successful cases of their systems.

Over the past two years, the R3 consortium received hundreds of millions of dollars in funding to finance its operations. Yet, the organization’s technologies including the R3 Corda are yet to be integrated into any one of its member bank’s financial platforms or networks, suggesting its limitation in applicability and plasticity.

More importantly, Peter Todd recently emphasized that R3 refused to open source Corda, entirely contradicting its previous announcement on October 20. During a Reuters special interview, executives from the R3 consortium stated that the organization intended to develop Corda as an open source blockchain platform.

R3’s chief engineer, James Carlyle further stated: “We want other banks and other parties to innovate with products that sit on top of the platform, but we don’t want everyone to create their own platform … because we’ll end up with lots of islands that can’t talk to each other.” In the same interview, R3 CEO David Rutter also noted that he desired to prevent banks from “blindly investing millions of dollars in petite, disparate technology projects.”

Furthermore, Peter Todd confirmed on November twenty five that R3 vetoed one of its member banks from hiring him to carry out a thorough review process and evaluation of Corda. Todd went on to explain that R3 is allergic to criticisms, claiming that he received a cease and desist letter.

However, James Lambert, an associate at R3, announced on November twenty five that the R3’s Corda platform would be open-sourced under the Apache two license from November 30.

“We will, of course, also be developing a commercial version of Corda for those who need specific enterprise features and support, but the open source codebase is the foundation of everything we do,” said Lambert.

Pro Criticism From Core Bitcoin Engineer

After Corda was open sourced, developers like Todd looked closely into the code and formed a ordinary conclusion:

It’d be risky to deploy Corda in production right now, as there aren’t clear definitions of what the consensus parts of it actually do.

Todd went on further to criticize the lack of transparency in the Corda network as well as its unnecessary complexity that has made the blockchain network more difficult to ensure high security measures. Todd noted:

Not once do the Corda docs talk about who actually is supposed to have access to keys; entire point of crypto is to know who did what!

Possibility of More Banks Leaving

According to Epiphyte CEO Edan Yago, there exists a strong possibility that more banks may leave the R3 consortium. He also stated that R3 was seeking $150 million but as mentioned above, the organization only secured almost 33% of their initial investment plan.

“Sources inwards of R3 have told me that they or others are considering leaving. Overall sense of pessimism. Others still optimistic,” Yago stated.

What do you think about the latest events surrounding the R3 CEV project? Let us know in the comments below.

Related video:

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *