R3, an enterprise blockchain software firm, has announced, in a press release, the launch of their new application Corda Settler. The application was built to ensure a seamless settlement of payments on Corda, and according to the press release, Ripple will be the first settlement mechanism.
As stated in the press release, XRP will be the first globally recognized cryptocurrency to be supported by the Settler application. This came as a bit of a shock to some members of both communities, as the two companies were locked in a legal dispute which was settled 3 months prior to this announcement. Nonetheless, this move will try to bring both the Corda and XRP ecosystems into closer alignment. Richard Brown, the Chief Technology Officer at R3, said:
“The deployment of the Corda Settler and its support for XRP as the first settlement mechanism is an important step in showing how the powerful ecosystems cultivated by two of the world’s most influential crypto and blockchain communities can work together.”
Corda is an open-source distributed ledger platform especially geared towards the financial world as it handles more complex transactions and restricts access to transaction data. According to R3, the platform is already being used in industries from financial services to healthcare, shipping, insurance and more.
Corda Settler is an open-source CorDapp that will help Corda users settle transactions. It provides a bridge to any payment rail that can return a cryptographic proof of settlement, including any traditional, domestic, and cross-border payment systems that are able to return such proof, as well as blockchain and cryptocurrency-based rails.
R3 have provided a very informative animated demo. According to it, transactions usually refer to an exchange of one asset for another. One leg of the transaction creates an obligation to complete the other leg. Corda Settler will allow users to complete the second leg on any system, be it a non-blockchain rail, cryptocurrency system or on Corda itself. If the second leg is not on Corda, two integration points will be needed, one to initiate the payment and the other to track the payment status.
According to the announcement made by R3 on Medium, when a payment obligation arises on Corda, one party can now request settlement using XRP. The other party will be notified that settlement in XRP has been requested and will need to instruct a payment to the required address before the specified deadline. Once the oracle service validates the payment, the obligation can be considered as settled. Corda Settler will then verify that the beneficiary’s account was credited with the expected payment and will automatically update the Corda ledger.