What is Corda blockchain?
The R3 group created Corda, an open source enterprise distributed ledger technology. Described as a privacy-focused distributed ledger technology(DLT), it is a major rival of Hyperledger Fabric. Because Corda does not employ blocks for batching transactions, it is not a blockchain by definition. Rather, it is predicated on the idea of state objects which represent the most recent state that move around the network. It offers blockchain’s advantages without the conventional block structure.
Purpose and Design
Corda was created from the ground up mainly for the financial services sector to solve problems that arise when businesses handle their own local ledgers, which can result in inconsistencies and operational risk. It seeks to increase the efficiency and trustworthiness of business-to-business interactions. Since then, the platform has grown to include supply chains, government, healthcare, and insurance. Its protocol was developed to meet business needs, such as limiting access (permissions) and identifying the parties to transactions (resolving concerns with concealed identities in public blockchains).
Corda Blockchain Architecture
- The Corda network is a peer-to-peer (P2P) network of nodes that is permissioned. Every node runs an instance of Corda with applications (CorDapps) and usually symbolises a company or legal entity.
- AMQP over TLS encryption allows for direct and private communication between nodes on a “need to know” basis. There is no worldwide protocol for gossip or broadcasting.
- To join, nodes must be granted permission by the network operator and go through a KYC procedure through Doorman’s Permissioning Service, which issues TLS certificates. IP addresses and node IDs (based on the X.500 standard) are decided upon and confirmed.
- Every node has its own “Vault” or centralised database. Only the data pertinent to that node more especially, the transactions the owner is involved in is kept in the vault.
Transactions and State
- Transitions between states are accomplished by transactions. A transaction is a request to add one or more new output states and update the status of zero or more current states (making them consumed/historical).
- The parties involved digitally sign the transactions.
- Corda processes transactions using a UTXO-based mechanism, similar to that of Bitcoin.
- The hash of the previous transaction is incorporated into the state of the subsequent transaction on Corda, which stitches transactions together at the transaction level. This is not the same as blockchains, which use hashes to connect blocks.
- The smallest data unit is represented by state objects, such as a digital document that records a mutual agreement. They cannot be changed; any additions or deletions result in a new version, designating the previous version as used up. States make reference to the voluntary legal prose and the mandatory contract code.
Consensus
- Without mining, Corda’s consensus methodology is straightforward and notary-based.
- Transactions are completed by one or more notaries, who are impartial, independent nodes. In order to avoid double spending, notaries verify uniqueness.
- There are two kinds of consensus: uniqueness consensus (which avoids double spending) and validity consensus (which verifies the complete chain of prior transactions by “walking the chain” and checking necessary signatures and contract restrictions).
- The transaction is only confirmed by the signatures of the persons involved. Uniqueness is guaranteed by notary services. To come to an agreement inside their cluster, notaries can utilise algorithms such as PBFT or Raft. Low latency and load balancing can be achieved by using many notaries.
Function and Purpose
- Distributed apps that operate on a Corda network are known as CorDapps.
- They enable network nodes to come to a consensus about ledger updates.
- They give nodes a way to come to an agreement.
- Flows, which are decentralised workflows that manage communication and specify the business logic for transactions, are defined by CorDapps. There can be zero or more subflows inside a flow.
- Nodes can manage transactions and reach agreements with CorDapps. One can reach a node (usually by making an HTTP request or by making a direct RPC call). This makes an RPC call to the relevant node. After using the smart contract to verify the information in the request, the node signs the transaction, shares it with the counterparty, obtains their approval, and has the notary validate it. If successful, the transactions are committed and the data is kept in the vaults of the corresponding node.
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Development and Components
- Typically, CorDapps are written in Kotlin or Java. The Java Virtual Machine (JVM) is the target of the code. In Corda, the JVM has been altered to produce deterministic code execution outcomes.
- A CorDapp’s smart contract is made up of three primary parts:
- The validation logic for modifications to the state objects is defined by executable code.
- State objects are created or consumed by transactions and serve as a representation of the current state of a contract.
- The operational and verification data that specify how a transaction can be validated are described by commands.
- CorDapps can use the Token SDK, which is a collection of libraries for building and managing both fungible and non-fungible tokens. A node’s vault can be logically divided using the Accounts Model, which was introduced in version 4.3. This is useful for use cases such as CBDC implementation or for CorDapps that represent numerous entities inside a single organisation.
- Deployment and Testing: With the aid of a Spring Boot server that internally invokes the corresponding node with an RPC call, CorDapps can be tested by executing REST endpoints on an alternate URL.
Security and Privacy
- Data is only shared with those who “need to know” in order to protect privacy.
- Nodes only store and see data that is pertinent to their transactions thanks to the Vault design.
- Transactions are immune to tampering and are digitally signed.
- Peer-to-peer communication uses TLS encryption.
- While non-validating notaries who merely verify uniqueness are frequently used to protect privacy, validating notaries may be able to view transaction data.
Corda blockchain Features
A node’s vault can be logically divided into smaller sub-vaults using the Accounts Model, which was introduced in version 4.3. This model is useful for representing many entities inside a single organisation and is appropriate for use cases such as CBDC implementation.
- Token SDK: Projects such as CBDC can use these libraries to create and manage fungible and non-fungible tokens.
- Oracle Services: Enable smart contracts to retrieve external data from APIs or URLs, with the Oracle node authenticating the data.
- Time Windows: Permit transaction timing limitations to be enforced.
- Attachments: Allow file uploads (PDFs, pictures) along with transactions.
- A non-profit foundation oversees the public permissioned Corda Network, which allows approved organisations to conduct business online.
- Tools: consists of a load tester, network simulator, node explorer, and application firewall.
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Implementations and Adoption
- The Enterprise version of Corda is used in production and offers high availability, support, and increased security, whereas the Open Source version is used for learning and development. They are completely interoperable and compatible.
- Corda is a private permissioned DLT with great scalability. Performance of about 600 TPS is mentioned in several sources.
- It has hundreds of customers worldwide in a variety of sectors, including governments and big banks. In the CBDC market, it is a major player.
- Gradle, Git, Kotlin, IntelliJ IDEA, and JDK 8 can all be used to set up development environments. You may find sample code on GitHub.
- Major cloud systems including Google Cloud, AWS, and Azure are suitable for deploying Corda.
- Compared to some other DLTs, it is said to have a low learning curve, good documentation, and a comparatively easy setup with plenty of resources.