Openchain is a new blockchain-related platform built by Coinprism. Similar to blockchain and Ethereum in particular, the service enables companies big and small to build their own OpenChains that can communicate and collaborate with each other. This technology bridges crypto-ecosystem and traditional finance, similar to the Open Asset technology already adopted by NASDAQ. Let’s take a look what is OpenChain.
Blockchain is the underlying technology that enables decentralized secure data processing. Blockchain links decentralized databases in such way that previous solutions could not make possible. While it’s been around for only a decade, it has already earned a strong reputation thanks to its accessibility and security.
OpenChain creators believe that financial institutions are less excited to adopt public ledger because data verification in blockchain always uses the help of “unknown” entities such as miners. However, OpenChain technology is more precisely tailored for Fintech needs, because with private blockchain the financial company will control all transaction verifications. This way financial companies still adhere to the principles of the distributed ledger while also enjoying reduced fees and remain in full control of their data.
While being built on similar principles, this technology doesn’t employ block concept. It is processing each transaction separately which helps to greatly reduce the settlement time. This makes the new technology especially useful for time-sensitive business activities cases such as trading and for companies who are careful about providing the instant verification of any user data.
Blockchain is monitored by millions of users, which on one hand allows the transactions to become faster and cheaper. Unlike the usual banking transactions that can take up to a week to be carried out, the blockchain transactions are taking seconds without extra service fees. This innovation is considered to be one of the most important high-tech revolutions of our time, as it produces artificial intelligence algorithms which can be adapted for other computational and prediction purposes including prediction of natural disasters or human cell mutations. On another hand, blockchain transactions can be slower and less private due to the open nature of blockchain.
The core feature of OpenChain is its ability to instantly verify a transaction. While Bitcoin payment confirmation can take anywhere from 10 minutes to several hours, the instant payment settlement can greatly improve the number of business applications that this platform can manage.
Here’s how it happens: OpenChain does not group transactions in blocks. Transactions are immediately chained to each other. Despite the fact that some systems successfully shorten the block time to just a few seconds, these a few seconds are actually a long time for time-sensitive programs, for example, applications in currency exchanges or stock trading. In this new platform, individual transactions are added to the chain as quickly as they’re submitted.
OpenChain is offering a perfect bridge between a blockchain and corporate data repository. Enterprises who wish to manage digital assets in a secure and agile way are welcoming this new open source technology.