MonetaGo, a software development company that builds private blockchains for financial institutions and central banks, has decided to switch from Hyperledger Fabric to R3’s Corda platform. According to a February 26 report from Global Trade Review, the company will now use Corda as it continues its expansion into Mexico and other international markets ahead of a current trial in India.
The New York-based firm, which has been testing its blockchain-based anti-fraud platform for receivables financing in India, said that its concerns over Hyperledger’s ability to scale made them switch over to R3.
“As we looked at the different scalability pieces of Hyperledger, we saw that it could get challenging, at least at the current throughput of Fabric. So we started doing some testing on Corda and realized, at least in this specific case, it made a lot of sense,” Jesse Chenard, the CEO of MonetaGo, said.
Hyperledger uses channels called “subnets” to ensure the privacy of data shared between parties on the blockchain. This facet of the software’s architecture has been of major concern to MonetaGo.
“Trade finance involves thousands and thousands of participants Looking at the scalability and load testing, you have to ask how will Fabric scale when you’ve got tens of thousands of suppliers with tens of thousands of channels,” Chanard explained.
On the other hand, Corda has an approach to privacy that seems to be better suited to the company’s needs. It only shares data between counterparties to a deal (and possibly their regulators) rather than broadcasting it like on a public blockchain, removing all need for partitioning.
The news R3 onboarding MonetaGo has only added to the company’s success. Corda has seen a significant rise in popularity in the past few months, partnering with several high-profile companies in the financial industry. Most recently, a three-bank transaction in Germany used the platform to settle a transaction of 100,000 euros, or around $113,500.