R3 reveals it is conducting blockchain proof-of-concept trials in eight different sectors

R3CEV, a consortium of more than 40 global financial institutions, is currently working on at least eight different proofs of concepts (PoCs) designed to demonstrate how distributed ledgers can streamline Wall Street trading on a large scale and make it easier to regulate transactions.

Speaking at the Blockchain and Distributed Ledger Conference on Thursday, an R3CEV executive listed eight different areas in which the company is working on proofs of concept, including system interoperability, payments, settlements, trade finance, corporate bonds, repo, swaps and insurance.

The conference attracted approximately 50 participants from regulators, product developers, enforcement attorneys and other financial industry representatives.

Jacob Farber, general counsel at R3, told attendees:

“Our financial institutions at the firm are researching and looking at proofs of concept in every area.”

Jacob Farber

Prior to this, R3 announced its Corda project, a distributed ledger that focuses on studying some of the unique privacy requirements of financial institutions.

Farber stressed that the purpose of the proof-of-concept projects they are conducting in these industries is not to replace them.

Instead, these proofs of concept will provide a range of services and write them to the distributed ledger. Specifically, Farber mentioned services including post-trade reporting, reference data and management data provided by applications.

Smart Contracts

Farber strongly objects to the term "smart contracts," which is used to describe legal agreements that are stored on a blockchain and contain certain obligations that are activated when certain pre-defined events occur.

“People call them smart contracts. I hate that name because they’re not actually contracts and they’re not really smart.”

Likewise, during yesterday’s panel discussion, Patrick Murck, a fellow at Harvard University’s Berkman Center for Internet & Society and former executive director of the Bitcoin Foundation, said he, too, was “infuriated” by the term, which was coined by Nick Szabo in 1997.

Patrick Murck

Merck also proposed using "programmed trading" instead, explaining that these contracts almost always have a traditional contract counterpart and that these contracts can only be executed mechanically, which can also be achieved with traditional technology.

The two-day conference, hosted by the American Conference Association, covered a wide range of topics, including law enforcement, regulators’ position on blockchain, and the nature of smart contracts.

Original article: http://www.coindesk.com/r3-reveals-8-areas-of-focus-for-blockchain-bank-trials/
By Michael del Castillo
Compiled by: Kyle
Source (translation): 8btc Information (http://www.8btc.com/r3-reveals-8-areas-of-blockchain-trial)