Diverse industries such as finance, supply chain, trade finance, healthcare and government can use Corda to simplify business transactions and drive efficiency. Corda has addressed some of the most complex transaction types by working closely with the highly regulated finance industry. Here are some of the ways people are building on Corda to solve problems in a host of industries.
In addition to driving efficient transactions, another popular use case for Corda is the improvement of internal processes
and systems. The immutable and linked nature of the records stored by Corda can streamline auditing
processes by ensuring the transparency and validity of information both within and between organizations.
This global, shared set of verifiable facts enables participating organizations to:
- Automate auditing of records with the linked and immutable nature of the ledger
- Profile risk based on shared data sets for greater confidence
- Replace internal processes and systems with dramatically simplified processes
The financial services industry formed the earliest and most demanding use cases for Corda. New regulations for financial services firms following the global financial crisis have imposed greater costs and compliance obligations. At the same time, the industry is facing disruption from fintech startups and new business models that are unencumbered by legacy infrastructure.
Corda has already been applied in a variety of use cases in finance to great effect. It was designed and built in partnership
with the largest financial institutions to the rigor imposed by regulators and stringent
industry criteria. Corda brings dramatic efficiencies to counter the greater costs while
enabling new business models even within large finance corporations.
Use cases include managing contract lifecycles such as post-trade processing of a swap or management of a trade finance agreement. Corda can facilitate these asset exchanges atomically, without an intermediary. Other scenarios include:
- Payments such as Instant Money Transfers (IMT) where banks no longer need to rely on complex and expensive nostro account relationships
- Equity post trade where settlement can occur immediately without complex arrangements for transfer of payment and assets
- Syndicated loans where Corda can facilitate collaboration between multiple organization in complex agreements. Finastra is leading in this area as discussed in this case study.
- Asset rehypothecation where Corda can enable regulatory control limits in the contract and reduce settlement time
Modern supply chains involve interdependent organizations that must collaborate to deliver a final product to market. Complex systems such as those producing aircraft or automobiles require the collaboration of numerous organizations with massive amounts of information and physical parts. This information forms a long, dependent chain of data that must be verifiable, trusted and immutable.
Corda provides a platform for collaboration across such chains without the need for a centralized and trusted party that can act as a single point of failure. Corda enables supply chains to:
- Show provenance of information and verify its authenticity
- Create automated auditing and encapsulation of business rules into transactions
- View connections such as a particular component’s origin and the dependent systems that may be impacted if it proves to be faulty
The insurance industry brings confidence to business operations. But the industry is plagued with manual processes that require significant paperwork and processing. The required recording and processing of information related to issuance and claims adds friction. Blockchain brings the insurance industry a single version of the truth across the industry faciltiating less fraud, greater efficiencies and new insurance possibilities.
Corda enables automation of much of these processes by building contracts that encapsulate the business logic of the policy along with a set of verifiable and immutable information. Such contracts can enable:
- Collect verifiable information from stakeholders to a claim
- Provide timely payments in an automated manner
- Reduce fraud with verifiable and immutable data
- Increase customer satisfaction with speed of processing
The insurance industry is embracing Corda as their preferred blockchain platform. As an example, B3i is an industry insurance initiative focused specifically on the use of blockchain in insurance. They selected Corda as the platform for their industry wide solution.
The healthcare industry represents a large and complex network of institutions that must manage patient data in a highly regulated and fragmented environment. The challenges include:
- Sharing data to facilitate a more comprehensive view of a patient while retaining a patient’s privacy
- Synchronizing of numerous disparate systems that hold patient data with disparate identifiers and data formats
- Intersecting with healthcare insurers and providers who require assurance on data validity and provenance
- Managing inconsistent and complex rules and processes
Corda unites disparate processes, increases data flow, and reduces costs resulting in improved patient experience and outcomes. The opportunities for applying Corda to solve the systemic issues of healthcare include:
- A global network of interoperable entities that can exchange data in a secure, confidential manner while ensuring compliance to healthcare regulation
- Framework for identity that preserves confidentiality while putting patients in control of their information across providers
- Smart contracts for a consistent, rule-based method for accessing patient data
- Connectivity to insurance providers to verifiable, immutable records on which to base claims in an automated process
The government can play a key role in society as a trusted intermediary facilitating efficient transactions. For example, land, mortgage or car titles are areas where government plays a central role. Such titles are managed in a fragmented set of inefficient systems that require manual intervention to facilitate transactions. They are typically exposed to risks, such as fraud or error, as they are auditable only in a paper trail.
Corda reduces the need of government involvement in transactions with immutable records and atomic transactions. Transactions have the assurance of the government issuance for title. Execution can be achieved directly between parties. This unlocks new private sector scenarios for transactions with the assurance of government backing