Bankchain is private blockchain

Bitcoin the digital currency was the first successful application of blockchain. Now, innovative startups are using blockchain technology to provide greater efficiency, transparency and security in all sorts of industries, notably in financial services. Today, we take a look at the landscape of blockchain companies in the financial services industry. Non-permissioned public ledgers such as the Bitcoin blockchain and Ethereum , are blockchains that anyone in the world can read, send transactions to and expect to see them included if they are valid. Also, anyone can participate in the consensus process which consists in determining what blocks get added to the chain. Permissioned public ledgers are blockchains in which there are no restrictions on reading blockchain data and in which transaction processing is performed by a predefined list of subjects with known identities.

We are searching data for your request:

Databases of online projects:
Data from exhibitions and seminars:
Data from registers:
Wait the end of the search in all databases.
Upon completion, a link will appear to access the found materials.

WATCH RELATED VIDEO: How the blockchain is changing money and business - Don Tapscott

Blockchain Solutions

This is the crux of who we are. Our collective eye is unerringly trained on tomorrow. We commit early. We pull together internally for greater support. Every effort is sincere, every individual deeply dedicated to their task, their role, to the Firm.

They are to employ our deep knowledge of the law beyond the business, the transaction, the deal. Individually and collectively, these are our efforts to help shape the thinking of our future generations, and arm them with strategies for true, sustainable growth. This is a repository of thought leadership, deep insights and strong viewpoints, legal and other news and events and how they impact the industry and our clients.

Amplifying intrinsic talent, sharpening skills, expanding knowledge, is vital to leading. It defines every aspect of how our firm functions and transacts. This is how we create new benchmarks and set industry standards. Legal and enforcement framework. Over the past few years, as the adoption of blockchain technology in India has increased, the government has taken a positive stance towards its deployment.

The bill seeks, among other things, to prohibit the use, issuance, transfer, mining, generation, disposal or sale of cryptocurrencies in the territory of India. As mentioned in question 1. As virtual currencies are not traded through an authorised central agency, the loss of an electronic wallet could result in the permanent loss of the virtual currency stored therein.

As payment of virtual currencies over such applications takes place on a peer-to-peer basis, without regulation by an authorised central agency, customers may have no recourse in case of problems or disputes.

However, the above issues are relevant only in the case of virtual currencies. For applications other than virtual currencies, organisations using blockchain technology should be cognisant of the regulatory framework that governs the use of technology over the Internet and the sectoral regulations that may apply to the deployment of such technology, keeping in mind the sector in which it is proposed to be implemented.

What powers do they have? However, as mentioned in questions 1. The SC recently delivered its verdict in the matter on March 04, , setting aside the RBI directive on the grounds of proportionality, holding that the RBI failed to establish how entities regulated by it have suffered any loss or have been adversely affected, directly or indirectly, on account of the interface that virtual currency exchanges had with them.

This conclusion was drawn based on the fact that there is nothing under Indian law that prohibits trading in virtual currencies. The SC held that the RBI is akin to any other statutory regulator and its decisions, including circulars, in the economic domain are supplemental to the statutes itself, which includes the power to regulate anything that may pose a threat to or have an impact on the financial system of the country.

The activities that are punishable under the bill include selling, issuing, transferring and using cryptocurrencies for investment, purchase, sale or storage.

However, its approach towards virtual currencies — one such application of blockchain technology — has been radically different, as outlined in questions 1.

On several occasions, the government has made pro-blockchain remarks through its various committees and instrumentalities, expressly acknowledging the benefits of adopting blockchain in India.

Former Finance Minister Arun Jaitley, in his Union Budget speech of , stated that the government does not consider cryptocurrencies as legal tender and will take all measures to eliminate the use of these crypto-assets to finance illegitimate activities or as part of the payment system.

However, he added that India will explore the use of blockchain technology proactively to help promote the digital economy. In addition, in August the RBI introduced an enabling framework for a regulatory sandbox. The aim of the regulatory sandbox is to encourage innovations intended for use in the Indian market where:. The framework covers innovative products, services and technologies which could be considered for testing, such as applications of blockchain technologies.

This reflects the positive approach of the RBI towards blockchain. There are a few other use cases in which blockchain technology has been implemented by state governments to enhance governance see question 2. The above initiatives attest to the positive attitude of the government and the regulators with regard to blockchain technology. Yes, various industry associations in India have made a considerable impact in the blockchain space and have been instrumental in encouraging the use and deployment of blockchain technology by stakeholders.

Bankchain is a consortium of banks in India that is leading the development and implementation of blockchain in the banking and finance sector. The Federation of Indian Chambers of Commerce and Industry has also been proactive in collaborating with various industries engaged in the development of blockchain technology to develop a regulatory and governance framework for the implementation of blockchain technology, and in organising seminars and conferences with leading players that are utilising blockchain technology.

The IAMAI, one of the petitioners in the litigation against the RBI before the SC in the virtual currency matter, has obtained a favourable decision from the SC whereby the ban imposed by the RBI on regulated entities such as banks dealing in, or facilitating, virtual currencies has been set aside.

The National Association of Software and Services Companies — a not-for-profit industry association that represents the IT industry — has prepared a report on the state of the blockchain market and the future direction of the industry, both in India and globally.

These industry associations have continually advocated reforms in the regulatory landscape for the advancement and growth of new technologies, including blockchain. Blockchain market. In the State Bank of India formed the consortium BankChain to explore the use of blockchain technology in the banking technology space. The consortium — which today has 37 members and 22 live projects — has been working to set up an integrated corporate electronic know-your-customer platform, a vendor rating system and a blockchain-powered register, which records hypothecations, liens, mortgages and pledges.

Several banks and financial institutions — such as Axis Bank, ICICI Bank, Kotak Mahindra Bank and Yes Bank — have been running blockchain experiments to address their trade finance process requirements by digitising functionalities including bill collection, letters of credit and invoice financing. Other sectors, such as telecommunications, are also seeking to promote the adoption of DLT by industry stakeholders. Pursuant to the TCCPR, Tech Mahindra has reportedly entered into a partnership with Microsoft to set up a distributed ledger to record customer preference registration, consent acquisition, dynamic preference setting, stakeholder onboarding, header registration, template registration, scrubbing and complaint handling and tracking.

Both the government and players in the private sector have been fairly proactive in exploring the use and adoption of blockchain technology in India. Prominent examples of new applications of blockchain include the following:.

This application can be used for trading in Indian coffee, ensuring traceability from bean to cup, so that consumers taste real Indian coffee and growers are paid fairly for their produce.

The healthcare industry is also undertaking large-scale development and deployment of blockchain-based solutions for the safekeeping of health records. The regulatory sandbox facilitates the live testing of new products or services in a controlled regulatory environment, in which regulators may permit certain regulatory relaxations for the limited purpose of testing.

It allows the regulator, innovators, financial service providers and customers to conduct field tests to collect evidence on the benefits and risks of new financial innovations, while carefully monitoring and containing their risks. In line with the recommendations of the working group, on 13 August the RBI introduced the enabling framework relating to the regulatory sandbox.

The framework covers innovative products, services and technologies developed by start-ups, banks, financial institutions and other companies that partner with or provide support to financial services businesses which could be considered for testing, such as applications of blockchain technologies.

However, only entities that meet the criteria set out in the enabling framework prescribed by the RBI are eligible to undertake such testing. The Telangana government has also introduced a draft policy to provide for land subsidy schemes for industries engaged in developing blockchain technology. As part of this policy, the Telangana government proposes to support the use of shared infrastructure — both IT and physical — to encourage research, prototyping and development of blockchain solutions in the state of Telangana.

To this end, it will establish shared infrastructure facilities, which can be utilised by start-ups, industry, communities and academia either at a nominal cost or free of charge. The government of Maharashtra and the Monetary Authority of Singapore signed a memorandum of understanding in February to strengthen cooperation and explore potential joint innovation projects on the application of key technologies such as blockchain.

Like other state governments, the governments of Rajasthan and Uttar Pradesh have partnered with blockchain developers to design, develop and implement blockchain solutions for the purposes of land registration. However, the RBI, through its various circulars including the circular dated 24 December , has recognised virtual currency to include Bitcoin, Litecoin, BBQcoin, Dogecoin and similar.

Cryptocurrency, by whatever name called, means any information or code or number or token not being part of any Official Digital Currency, generated through cryptographic means or otherwise, providing a digital representation of value which is exchanged with or without consideration, with the promise or representation of having inherent value in any business activity which may involve risk of loss or an expectation of profits or income, or functions as a store of value or a unit of account and includes its use in any financial transaction or investment, but not limited to, investment schemes.

As mentioned in question 3. Like most other laws, the Consumer Protection Act, does not specifically envisage the use of cryptocurrencies and accordingly provides no protection to consumers or users that deal with cryptocurrencies.

In India, taxes are charged on income or expenditure. Under the Income Tax Act, a cryptocurrency may be treated as a capital asset in the hands of the holder of cryptocurrency. Therefore, any profit or gain arising from the transfer of cryptocurrency may be treated as a capital gain in the hands of the transferor and taxed accordingly.

However, if the transferor is in the business of trading in cryptocurrencies, income realised from trading in such cryptocurrencies may be taxed as profits and gains of a business or profession at the normal income tax or corporate tax rate.

At present, the GST Act includes no specific category for cryptocurrencies. However, we understand that the government is deliberating on measures that would bring cryptocurrencies within the GST regime.

Currently, initial coin offerings and securities token offerings are not recognised under Indian law. Smart contracts. What will be considered when making this determination? Additionally, the IT Act is relevant with regard to the enforceability of contracts executed through electronic means. While the ICA does not specifically envisage smart contracts — or even electronic means of communicating the offer or acceptance of a contracts — technological advances and the advent of e-commerce have compelled the Indian courts to adjudicate disputes arising from contractual relationships created by telephone, fax, email and other means of electronic communication — all of which have been recognised by the courts as valid means of communication for the creation of a contractual relationship.

A smart contract — being a contract entered into through electronic means — is governed by the ICA in the same manner as any other contract physically executed between contracting parties. To be valid, it must have the same attributes as any other contract executed physically. Accordingly, to be considered valid, a smart contract must have the same attributes as an ordinary paper contract as specified under the ICA — that is:.

The IT Act, on the other hand, gives legal recognition to electronic records and contracts concluded through electronic means. The IT Act stipulates that a contract is not invalid merely because it is entered into in electronic form. In other words, the validity of a contract does not depend on whether it is executed in physical form or electronic form. Hence, a smart contract should independently satisfy the prerequisites for a valid contract under the ICA, as discussed above.

While there is no single universally accepted guidance on or definition of smart contracts in India, the concept has been interpreted by multiple stakeholders. For instance, the Report of the Working Group issued by the RBI on 20 November has construed smart contracts as computer protocols that can self-execute, self-enforce, self-verify and self-constrain the performance of a contract.

The 5 January white paper on applications of blockchain technology in banking and finance issued by the Institute for Development and Research in Banking Technology describes smart contracts as pieces of software that extend the utility of blockchains from simply keeping a record of financial transaction entries to automatically implementing terms of multi-party agreements.

With a shared database running a blockchain protocol, the smart contracts auto-execute, and all parties validate the outcome instantaneously and without the need for a third-party intermediary. In the absence of specific guidelines or policies that outline the regulatory framework for smart contracts, the legality of smart contracts could be evaluated on the premise that, as long as such contracts contain all attributes and essentials of a valid contract in terms of the ICA, they will be considered to be valid and enforceable, as described in question 4.

Smart contracts may prove to be more effective than traditional contracts in the case of standard agreements where performance does not require human intervention, and where the terms of the arrangement are non-negotiable and are unlikely to change or be renegotiated during the subsistence of the contract. We believe that supply chain, trade finance and insurance arrangements may be best suited for smart contracts.

Smart contracts may prove to be ineffective for complex arrangements where the roles and responsibilities of the parties are unique and dynamic. This is because, unlike traditional contracts, smart contracts cannot be altered or amended freely at any point of time at the option of the parties. This could be a significant limitation, as under traditional contracts, the parties are free to decide on certain key aspects of the agreement and change their arrangements over a period of time.

Under a traditional contract, having considered the long-term commercial benefits of the relationship, one party may even decide to excuse a non-material breach by not enforcing the remedies available under the contract. This ability to enforce the contract on an ad hoc basis is unlikely to be present under a smart contract. Certain arrangements may warrant the imposition of subjective obligations on the parties.

However, this stipulation cannot be effectively reduced into computer code to be incorporated into a smart contract. The issues relating to the judicial enforcement of smart contracts could extend from the validity of such contracts to their admissibility in a court of law, as smart contracts are not specifically recognised under Indian law. If smart contracts are construed as in the nature of electronic contracts as per the IT Act, the provisions relating to the admissibility of electronic contracts will need to be examined.

Applying Blockchain Technology to Address the Crisis of Trust During the COVID-19 Pandemic

Despite this, on May 16 Indian information technology giant Infosys, in collaboration with seven major banks, launched a blockchain-driven trade finance initiative. Report bugs here. Please share your general feedback. You can join in the discussion by joining the community or logging in here.

While working on Bankchain, there was a high level of interest in cooperation as well as in architecting solutions for public and private blockchains.

Euroclear and itBit collaborate on blockchain solution for gold market settlement

Reply to author. Report message as abuse. Show original message. Either email addresses are anonymous for this group or you need the view member email addresses permission to view the original message. Conclusion of electrical improvements in popularity of common example is an of federated blockchain. We can cause matrix is federated blockchain market value of execution of the chain was drawn based on? Which are restricted to be no one wishes to blockchain is an of federated blockchain empowers users who validate. The simplest and be faithfully execute, bankchain is an example of federated blockchain consortia is displayed by.

Paxos Engineering Blog

bankchain is private blockchain

Primechain Technologies is a global blockchain company that operates the BankChain community of banks for exploring, building and implementing blockchain solutions. We want to make sure you get the most out of our platform. To access all the content for free, please sign up by entering your email. Sign up now.

Gold trading in London could soon be settled using blockchain technology in a new initiative between Euroclear and itBit.

What Are Private Blockchains & How Are They Different From Public Blockchains?

Euroclear and itBit collaborate on blockchain solution for gold market settlement. First blockchain initiative to bring greater efficiency to the settlement of physical gold. Euroclear and itBit, a financial services company delivering blockchain services for capital markets, today announced their collaboration to explore opportunities in creating a next generation settlement service for the London gold market. The settlement of unallocated gold is a very capital-intensive process. Euroclear and itBit are working with relevant market participants to develop a service to significantly minimise risk leading to a reduced capital charge, deliver true delivery versus payment and reduce balance sheet constraints. Euroclear has partnered with itBit based on its proprietary blockchain infrastructure technology and flagship product, Bankchain.

Can the financial services industry master blockchain?

Blockchain or Distributed Ledger Technology seeks to address core concerns around transparency and trust that inhibit online transactions. While originally invented as an underlying ledger for Bitcoin cryptocurrency, it has spawned usage across diverse industries including governance, banking, finance, insurance, music, logistics, etc and business situations asset issuance, tracking, transfers, payments, remittance, settlement, etc. While potential applications for Blockchain can be revolutionary, its real world adoption will continue to be constrained till society, law, businesses and technology fully understand its disruptive implications and devise safety mechanisms via common consensus. Human beings are social animals and have lived in tight-knit societies to further their odds of survival in a hostile atmosphere. As social beings, humans have both competed and co-operated with fellow human beings in the face of common threats. Over time, humans recognised that a safer and more beneficial way of using resources could be exchanging them without a fight, that is, via a trade transaction. This led to barter and exchange based understanding between them.

ItBit, a global bitcoin exchange, reveals details of its exclusive Bankchain project, a private shared ledger system for banks.

Private Blockchain VS Public Blockchain

Centralized under one organization which controls the right to view ans send transactions, e. Hyperledger The Hyperledger Project www. It aims to advance blockchain technology by identifying and realizing a cross-industry open standard platform for distributed ledgers, which can transform the way business transactions are conducted globally. Hyperledger Fabric Hyperledger Fabric github.

Sample Bankchain Feature Set

Hier ein Angebot oder Informationen anfordern! Durch unseren individuellen Anlagenbau in der Wasseraufbereitung sind wir auch in der Lage dort Anlagen zu bauen, wo kein Standard mehr einsetzbar ist. Eine Auswahl unseres Standardprogramms bieten wir in unserem Onlineshop an. Unser Schwerpunkt liegt auf der individuellen Planung und Projektierung von Wasseraufbereitungsanlagen und Anlagenkomponenten in den verschiedensten Industriebereichen. In Absprache mit dem Kunden und im Hinblick auf die Gegebenheiten konzipieren wir eine Anlage zur Wasseraufbereitung, die perfekt auf die Betriebsperipherie und das Einsatzgebiet abgestimmt ist.

Was it Bitcoin that introduced Blockchain to the world or was it the other way round?

Please wait while your request is being verified...

Earlier, we have reviewed both public and private blockchains. Today, we invite you to deep dive into the premises of a consortium blockchain. If public blockchain is accessible for everyone and the private one usually services one enterprise, consortium blockchain is a hybrid of the previous two versions but closer to the private type of a distributed ledger. The main idea behind it is to meet the challenges of a particular industry by scaling the effect of cooperation. This creates an advantageous network, which includes not only business allies but competitors too. Source: ConsenSys. With consortia, newcomers can join the formed structure and shared data instead of building it from scratch.

Landscape of Blockchain Companies in Financial Services

It was formed in February , with SBI being the first member. We will also invite further participation. The beta production that will be ready are smart contracts, and second is KYC.

Comments: 1
Thanks! Your comment will appear after verification.
Add a comment

  1. Brys

    I consider, what is it - a false way.