R3 Creates Corda Network Foundation to Manage Corda Blockchain Network

Blockchain technology provider R3 has set up the Corda Network Foundation, a group that will independently manage and operate its Corda blockchain network, which provides a blockchain platform on which firms can build applications on and share information through an interoperable system.

R3 will continue to build out Corda despite transferring management of the network to the foundation, which will be completely separate from R3 and will be responsible for creating rules and standards for the Corda network.

R3 essentially becomes a supplier to the foundation and its members, says James Carlyle, head of network and operations at adding that R3, says the foundation is a means to ensure the growth of the Corda community.

“One of the reasons we’re setting up the foundation is to assure Corda users that the governance and control of the network will be conducted in a fair manner,” Carlyle says. “The foundation offers a transparent way for rules and standards to be created, ensuring users are a part of it.”

He says it is important for R3, as a commercial organization, “to show that the network will not be monetized, that is why we are explicit that the foundation is separate.”

The foundation will comprise representatives from Corda users with two seats available for R3. Users will vote for which individuals and organizations are represented on the foundation’s board, with the first elections slated for 2020. In the meantime, Carlyle says, the foundation will appoint a one-year transitional board to begin the process of creating standards for the network.

Aside from managing the network, the foundation’s responsibilities will include setting a membership fee to use the network, and for setting standards around issues such as managing disputes, or creating rules around assigning identities.

“I absolutely believe this is the best way to govern a network. Blockchains are grounded in transparency, and all systems need rules, but people using the network must understand who is in control, and have a say in how it’s run,” Carlyle says.