Not blockchain, but better than blockchain, R3 CEO believes Corda has great application prospects in the financial sector

The general manager of “blockchain-inspired” startup R3CEV has hit back after the organization expressed regret for investing millions of dollars in blockchain technology.

Last week, R3 tweeted while updating the latest information on the Corda platform that it would no longer create a blockchain system because they simply did not need a blockchain.

The tweet soon went viral, drawing ridicule from the cryptocurrency community, with some accusing R3 of wasting money.

I’m not a genius. However, even I didn’t need to spend $59 million to learn that private blockchains are stupid and inefficient. Public blockchains win.

R3 General Manager Charley Cooper responded to Cointelegraph’s email, in which he reiterated that R3 never intended to directly adopt blockchain technology.

He wrote in the email:

What a shame, this story (the failure of the R3 blockchain) is not a story at all.

He added:

We have made it clear at the outset that while Corda is a distributed ledger platform, it is not a traditional blockchain platform and was not designed to be one.

His comments are similar to those made by R3 deputy director Clemens Wan at developer conference Construct 2017, when Wan said R3 was not a blockchain startup but was simply “inspired by blockchain.”

Cooper continued:

We cannot rush to adopt blockchain for large-scale financial markets: changes must be made to accommodate regulatory, privacy and scalability issues… Corda’s distributed ledger technology is designed to meet the specific needs of the financial services industry.

To a large extent, Corda is inspired by blockchain systems and absorbs the advantages of such systems, but it is designed to cater to the needs of regulated financial institutions.