Mastercard to Offer Blockchain based Payments in Partnership with R3 Using Corda, Crypto Industry Provides Comments

Mastercard (NYSE: MA) has announced a new partnership with R3 to use their Corda platform to power blockchain-based cross border payments. Corda is a permissioned blockchain that has the support of multiple financial services firms and has been experiencing additional traction.

The partnership is said to initially focus on faster global payments globally. Mastercard says this is the latest step in their “multi-rail strategy, providing customers with unrivalled choice in how they move money.”

Payments and transfers is an area where traditional finance dominates but participants have been slow to innovate and adapt. Some transfers may take days to complete yet the technology to make payments and transfers instantaneous has been around for years. Mastercard believes that by working with R3 they can leverage their existing brand while providing value for their customers.

David Rutter, CEO of R3, said they were excited to work with Mastercard on the project noting that all institutions rely on the ability to send and receive payments bot too often the technology is “cumbersome and expensive.”

“Corda was designed specifically for enterprise use cases such as this, and we look forward supporting Mastercard in bringing blockchain-enabled payments businesses across the globe,” said Rutter.

Crowdfund Insider received some feedback from blockchain industry participants regarding news of the partnership.

Filipe Castro, co-founder and CIO at UTRUST, a crypto payment solution offering instant transactions, stated:

“This partnership demonstrates Mastercard’s intent to leverage blockchain technology to gain a competitive advantage. This is not Mastercard’s first foray into blockchain. Their first implementation with DLT was not in the world of payments but in the verification of the provenance of luxury goods. In payments and beyond, it is not the first blockchain project where Mastercard is involved – e.g., the creation of a blockchain for verifying the provenance of luxury goods.”

Castro said these types of investments are driven by a need to protect against disruptive change and challenges to their business model:

“Payments are a killer app for blockchain, unlike any other due to their mass appeal – a use-case that is especially relevant for the mainstream adoption of digital currencies as a means of payment. In an age of fast information & instant feedback, where digital and physical augment each other, a universally trusted, verifiable and privacy-conscious means of value transmission will play a pivotal role. This follows the same cycle of continuous technology evolution we have seen in the early ages of the internet. In the same way, email or the browser were killer apps of the early internet age, relying on protocols and foundations of years prior. Those, in turn, led to the next wave of killer apps – search engines, social networks, mobile-centric apps and more. All of those had implications beyond just technology, tackling specific segments – be it productivity, communication or human relations. This time is money itself.”

Sky Guo, CEO, and Co-Founder of Cypherium, an enterprise blockchain solution, called Mastercard’s move similar to other big corporates entering the blockchain sector. But he added that it is difficult to discern whether Mastercard recognizes the value of the tech or if it is just “corporate appropriation.”

“On one hand, we can’t survive as new financial systems without meaningful recognition from and conversation with legacy systems, such as MasterCard and other centralized goliaths,” said Guo. “On the other hand, these technologies—especially the public blockchains—pose a very real threat to the business models of a number of these companies, and in order to quell their disruption, giants like MasterCard want to absorb crypto projects on their own terms.”

Guo added that he believes there will be little need for the kind of private DLTs from the likes of JP Morgan, Facebook and now Mastercard, if blockchains scale to their full extent.

“The true killer Dapp will make obsolete these private networks; it will be faster and cheaper to use while returning financial economy to its users; that is the promise of Bitcoin that so many new chains are trying to fulfill. So one can see that their motivation in entering the space is, at least partially, guided by their need to street the conversation, to dictate the way in which blockchain technology enters the world. For now, though, blockchain must support and participate in these projects.”

Charles Lu, CEO of Findora, pointed to the fact the partnership between R3 and Mastercard is a pilot program and may never go beyond proof of concept:

“… the news that Mastercard is to develop a blockchain-based cross-border payments platform is a welcome move,” said Lu. “Tech giants such as Mastercard play an influential role in encouraging the acceptance of cutting-edge technologies and this news is symbolic of Mastercard’s willingness to challenge the status quo and seek solutions to improve current payment systems.”

Lu added that change is on the horizon:

“we are witnessing cryptographic breakthroughs including zero-knowledge proofs, multiparty computation, and scalability solutions — all of which have the potential to shake up the financial industry as we know it.”

Cypherium Teams Up with Google Cloud Platform to Provide Enterprise Grade Blockchain Solutions

Cypherium, an enterprise-focused blockchain platform that prioritizes scalability and decentralization, has announced on Tuesday it has formed a new partnership with Google Cloud to offer blockchain solutions to Google Cloud customers.

Through the partnership, Cypherium will notably provide corporate clients who require an enterprise blockchain solution with frontier speed, high throughput, confidentiality and the cross-chain capabilities needed to scale to the demands of real-world business needs.

“The Google Cloud collaboration comes at a time of strategic innovation for Cypherium and marks a key milestone in a series of strategic scaling initiatives for the company, including collaborations with Amazon Web Services and IBM Cloud.”

While sharing more details about the partnership, Sky Guo, Co-Founder and CEO of Cypherium, stated:

“We’re delighted to be collaborating with Google Cloud to provide enterprises with a full-stack solution to harness the potential of this paradigm-shifting technology. The growing demand in the market for DLT solutions in the financial industry and beyond drives our commitment to this collaboration. Cloud customers can rest assured that the blockchain solutions they implement using Cypherium Enterprise are clad in robust security, and capable of delivering rapid transaction speeds for its smart contracts and achieving fast data processing from its Java virtual machine.”

Guo went on to add:

“Google Cloud and Cypherium are bound by a perpetual need to innovate. The future of commerce and blockchain are inextricably linked and we are well-positioned to leverage Google Cloud’s expansive resources and best-in-class infrastructure to accelerate the use of the technology to solve real-world problems faced by businesses today.”

Cypherium Announces a Scalable, Hybrid Blockchain Built for the Future

The development of efficient blockchains has come a long way since 2009 with just about every big financial institution working on incorporating the technology first utilized by the crypto crowd. Scalability continues to be a concern within blockchain world. While many companies are actively working on a wide variety of technical answers to the blockchain scaling question, the industry has yet to establish a dominent, well-functioning system ready for mainstream use. One recent article predicted that Blockchain will burn as much electricity as Denmark in a few years.

Several lead blockchain cryptographers have banded together with experts from companies such as Google, Amazon & Microsoft to create Cypherium a solution for this problem.

Building off Emin Gun Sirer and Bryan Ford’s work on the Bitcoin-NG and ByzCoin protocols, Cypherium wants to be the market-ready solution for scalability.

The group creating Cypherium say it will be leveraging a hybrid PBFT/PoW consensus mechanism to provide optimal on-chain scalability, enabling thousands of transactions per second. This mechanism adopts the idea of decoupling key block mining from micro blocks for faster transaction processing, first pioneered in Bitcoin-NG. Cypherium also says it borrows from ByzCoin to elect a group of validators from recent key block miners, ultimately allowing said groups to commit transactions collectively.

Additionally, Cypherium is described as having a light-weight sandbox environment that separates testing and production, while supporting consensus self-upgrades. By bringing governance on chain, Cypherium will avoid hard-forks and ultimately allow network participants to adaptively adjust transaction block sizes as well as other proposed protocol upgrades.

“Cypherium has shown promise to mitigate the scalability problem that permission-less blockchains are currently facing,” stated Sky Guo, CEO of Cyphereum. “We have all seen problems with scalability that have inconvenienced and angered many. We are happy to provide a resolution to one of blockchain’s largest criticisms.”