R3 has just announced the completion of the first two of three tranches in its Series A fundraising round, securing $107 million in the world’s largest  Distributed Ledger Technology (DLT)  Distributed Ledger Technology (DLT) A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to run most of the world’s largest cryptocurrencies, including Bitcoin and Ethereum.Benefits of Distributed Ledger TechnologyThe primary advantage of DLT is the lack of central authority. Each time a ledger update happens, every node constructs a new transaction. Subsequently, all nodes vote by consensus algorithm on which copy is correct. Once a consensus has been determined, all the other nodes update themselves with the new, correct copy of the ledger. This provides several inherent security advantages, achieved via cryptographic keys and signatures.The information stored in a distributed ledger is immutable, or unchangeable. This is because in order to make changes on the network, more than half of the devices that uphold the network would have to consent. This is a very effective defense against hacking and tampering, but it can also lead to difficulties when it comes to things like agreeing on software updates. As a result, unmet desires to update a blockchain network’s software has led to the creation of entirely new networks with new cryptocurrencies (i.e., Bitcoin Cash).Many industries have since branched out with DLT, including banks and multiple fintechs. The area continues to draw much research, and scrutiny. Many proponents of DLT see it as the future of finance, though this is far from a consensus perspective. A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to run most of the world’s largest cryptocurrencies, including Bitcoin and Ethereum.Benefits of Distributed Ledger TechnologyThe primary advantage of DLT is the lack of central authority. Each time a ledger update happens, every node constructs a new transaction. Subsequently, all nodes vote by consensus algorithm on which copy is correct. Once a consensus has been determined, all the other nodes update themselves with the new, correct copy of the ledger. This provides several inherent security advantages, achieved via cryptographic keys and signatures.The information stored in a distributed ledger is immutable, or unchangeable. This is because in order to make changes on the network, more than half of the devices that uphold the network would have to consent. This is a very effective defense against hacking and tampering, but it can also lead to difficulties when it comes to things like agreeing on software updates. As a result, unmet desires to update a blockchain network’s software has led to the creation of entirely new networks with new cryptocurrencies (i.e., Bitcoin Cash).Many industries have since branched out with DLT, including banks and multiple fintechs. The area continues to draw much research, and scrutiny. Many proponents of DLT see it as the future of finance, though this is far from a consensus perspective. Read this Term) investment to date.

The London Summit 2017 is coming, get involved!

The first two tranches of the Series A round were made available only to R3 members, while the third and final tranche – which opens later this year – will be accessible to R3 members and non-R3 institutional investors.

R3 explains that it will use the funds to accelerate technology development and expand strategic partnerships for product deployment. The company’s efforts will be focused on Corda, R3’s  Blockchain  Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term platform for regulated financial institutions, and its infrastructure network.

David E. Rutter, CEO of R3, comments: “This investment is unprecedented. Many of the world’s largest financial firms have come together not just with capital support, but with a robust commitment to work with R3 in developing industry solutions that will be the building blocks of the new financial services infrastructure. We’ve got unparalleled momentum.

R3 has proven the collaborative model can successfully drive innovation in financial services to a degree never before seen,” continues Rutter. “In the space of less than two years, we have built a network of over 80 members, launched an open-source distributed ledger platform specifically for wholesale financial markets, conducted over 60 detailed use cases across a variety of asset classes, led the way in regulatory engagement on behalf of the broader DLT community and are ahead of schedule for initial commercial deployments this year. We are on our way to becoming a new operating system for financial services.”

Investors come from across Europe, Asia-Pacific and the Americas, counting over forty participants from over 15 countries. These include:

• Banco Bradesco
• Itaú Unibanco S.A.
• Bangkok Bank
• Mitsubishi UFJ Financial Group (MUFG)
• Bank of America Merrill Lynch
• Mizuho
• Bank of Montreal
• Natixis
• Bank of New York Mellon
• Nomura
• Barclays
• Nordea Bank
• BBVA
• Northern Trust
• BNP Paribas
• OP Cooperative
• B3 (BM&FBOVESPA and Cetip)
• Ping An
• Canadian Imperial Bank of Commerce
• Royal Bank of Canada
• Citi
• SBI Group
• Commerzbank
• SEB
• Commonwealth Bank of Australia
• Societe Generale
• Credit Suisse
• Sumitomo Mitsui Banking Corporation
• CTBC Financial Holding
• TD Bank Group
• Daiwa Securities Group
• Temasek
• Danske Bank
• The Bank of Nova Scotia
• Deutsche Bank
• The Royal Bank of Scotland
• HSBC
• U.S. Bank
• ING
• UBS AG
• Intel Capital
• Wells Fargo
• Intesa Sanpaolo
• Westpac

The independent investment bank Broadhaven Capital Partners was the sole advisor to R3 on this deal.