The document summarizes the Corda Network, which enables any business operating a Corda node to transact directly with any other. It discusses how the network is structured like a food court, with business networks providing services to members like a food vendor would to customers. The Corda Network itself provides common infrastructure and standards. Governance of the network will be decentralized and transparent through a non-profit foundation. The foundation will be established in November and governance will transition through 2019.

1. James Carlyle
james@r3.com
The
Corda
Network

2. Neurons from a mouse spinal cord. Credit: NICHD/S. Jeong
• Enables any business operating
a Corda node to transact
directly with any other
• Business networks can be built
on top
• Membership is open to all
Enterprise and Open Source
Corda users
The Corda Network

3. Image: David Jones/PA Wire
• Cheaper to operate and simpler to administer - many different
business networks using single set of infrastructure
• A single set of digitised assets, like Cash, can flow across applications
• Processes can be linked together; for example, supply chain and trade
finance. Business networks are more valuable than if standing alone
Why?

4. CC BY-SA 3.0 https://commons.wikimedia.org/wiki/File:Yaohan_food_court.jpg
• Participants e.g. bank, shipper, broker are like customers: Members
of one or many business networks
• Business Networks e.g. HQLAx, Marco Polo, B3i are like food vendors:
Provide membership control, KYC, onboarding, billing, dispute
resolution, pricing, marketing
• The Corda Network is like the food court: Sets standards and provides
tech services
The Network is structured like a food court:

5. CCBA-SA2https://www.flickr.com/photos/ronmacphotos/8704611597
Fairness: network doesn’t favour one party, industry or group
Transparency: it’s clear how decisions are made
Democracy: participants decide the rules
Stability: participants can make long-term plans
Flexibility: rules evolve with circumstances
Openness: no groups are precluded
Cost-effective: network costs minimised, shared
Independence: not beholden to external authority

6. CC BA-SA 2 https://www.flickr.com/photos/jonezes/143434918/
The Foundation:
A Dutch “Stichting”
• Not for profit
• Governed by a Board
• No shareholders
• Can pay invoices, charge
membership
• Can retain a surplus
• No dividends

7. CC BA-SA 2 https://www.flickr.com/photos/jonezes/143434918/
The Foundation will consider a
move to governance “on-
chain” and on-Corda
For example, the open-source
Cordite Digital Mutual
framework is showing promise
To meet timelines, start with
conventional voting, until the
Foundation is established

8. CCSA2.0https://upload.wikimedia.org/wikipedia/commons/2/25/Right_loop.jpg
Network identity per legal entity
=
Flat membership fee
=
Control to run a single node
=
Paid network services
=
A democratic vote
=
Control over the network

9. http://www.krugerpark.co.za/africa_suricate.html
• Membership elects the Board of Directors
• The Directors control the Foundation
• The Foundation controls the Operator
• The Operator is subservient
Governance is centralised and transparent; control is distributed

10. CCBY2.0https://www.flickr.com/photos/tiarescott/69821764
The Board of Directors:
• Elected democratically
• 11 seats, 2 assigned to R3
• 2 year term
• Short-term diversity controls

11. Mandatory governance:
• Requires a supermajority 2/3 board vote
• Constitutional change, membership / identity issuance criteria, fees
Discretionary governance:
• Technical parameters, service operations, technical implementation
https://nl.m.wikipedia.org/wiki/Bestand:
2016_EU_Referendum_Ballot_Paper.jpg
Two main types of voting event:
PRESS ASSOCIATION Photo. Rui Vieira/PA Wire

12. • The Foundation will provide a distributed Notary
• Pay per use, not flat fee, because a busy node may
generate 106 more than a quiet node
• Corda has a robust RAFT cluster notary
• Working towards Byzantine Fault Tolerance
• Business networks may operate separate notaries

13. Timelines
• Testnet now live with over 100 nodes. Marketplace integration
• Call for Notary cluster participation: now
• Network Trust Root Ceremony on September 14th
• Production update with an updated Corda 3.3 and improved
certificate hierarchy: mid-October
• Foundation establishment: November
• Governance transition: through 2019
https://retours.eu/en/06-simplon-railway-graphic-design/#11

14. James Carlyle
james@r3.com
Q & A