Blockchain technology is transforming the financial sector, and some of the world’s leading banks are taking notice. According to a recent report by CB Insights, JP Morgan and Citibank are among the top investors in blockchain startups, having participated in 29 and 25 funding rounds respectively since 2014.
These banks are betting on the potential of blockchain to improve efficiency, security, transparency and innovation in various aspects of banking, such as payments, trade finance, capital markets and identity verification. Here are some of the blockchain companies that have received funding from JP Morgan and Citibank, and how they are disrupting the industry.
Chain: Chain is a platform that enables enterprises to build and operate blockchain networks that can power any type of asset, from securities to loyalty points. Chain has partnered with Nasdaq, Visa, Citi and others to create blockchain solutions for different use cases, such as cross-border payments, private equity issuance and digital asset custody.
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In 2018, Chain merged with Lightyear, a company that was developing applications on the Stellar network, to form Interstellar, a new entity that aims to deliver global financial access using blockchain.
Digital Asset: Digital Asset is a provider of distributed ledger technology (DLT) solutions for the financial sector. The company’s flagship product is DAML, a smart contract language that can run on multiple platforms, such as Hyperledger Fabric, Corda and Amazon QLDB.
Blockchain and DAG are two different types of distributed ledger technologies that aim to achieve consensus among multiple nodes in a network. Blockchain is the older and more well-known technology, while DAG is a newer and more scalable alternative. In this blog post, we will compare and contrast these two technologies and explain their advantages and disadvantages.
Blockchain is a linear chain of blocks that store transactions or other data. Each block is linked to the previous one by a cryptographic hash, which ensures the integrity and immutability of the data. Blockchain relies on a consensus mechanism, such as proof-of-work or proof-of-stake, to validate new blocks and prevent double-spending or malicious attacks. Blockchain has been used to power cryptocurrencies like Bitcoin and Ethereum, as well as other applications such as smart contracts, digital identity, and supply chain management.
DAG stands for directed acyclic graph, which is a network of nodes that are connected by edges. Unlike blockchain, DAG does not have a single chain of blocks, but rather multiple branches that can merge and diverge. DAG does not require a consensus mechanism to validate transactions, but rather uses a technique called gossip protocol, where each node propagates its own transactions and validates the transactions of others.
DAG claims to offer faster transaction speeds, lower fees, and higher scalability than blockchain. DAG has been used to power cryptocurrencies like IOTA and Nano, as well as other applications such as data streaming, Internet of Things, and artificial intelligence.
Digital Asset has worked with several clients, including ASX, BNP Paribas, Broadridge and the Depository Trust & Clearing Corporation (DTCC), to implement DLT solutions for various domains, such as clearing and settlement, trade finance and derivatives. In 2019, JP Morgan led a $35 million Series C funding round for Digital Asset.
R3: R3 is a consortium of over 300 financial institutions, technology companies and regulators that are developing Corda, an open source blockchain platform designed for business.
Corda enables interoperability among different networks and supports various types of transactions, from simple payments to complex workflows. R3 has collaborated with many partners, such as HSBC, ING, Mastercard and SWIFT, to launch blockchain applications on Corda for various sectors, such as trade finance, insurance, healthcare and supply chain. In 2019, R3 raised $65 million in a Series B funding round that included Citi and JP Morgan.
Ripple: Ripple is a company that offers a global payment network that leverages blockchain technology and its native cryptocurrency, XRP. Ripple’s network consists of two main components: RippleNet, a network of banks and payment providers that use Ripple’s software to process cross-border payments; and On-Demand Liquidity (ODL), a service that uses XRP as a bridge currency to enable instant and low-cost transfers between different fiat currencies.
Ripple has over 300 customers in more than 40 countries, including American Express, MoneyGram, Santander and Standard Chartered. In 2016, Citi participated in a $55 million Series B funding round for Ripple.
Ripple’s network improves security by using cryptography and consensus algorithms to validate transactions and prevent fraud. Ripple’s network also improves data quality by eliminating the need for intermediaries and providing end-to-end visibility of transactions.
Solana has seen a remarkable recovery in its total value locked metric
Solana, the blockchain platform that claims to offer fast, scalable and low-cost solutions for decentralized applications (DApps), has seen a remarkable recovery in its total value locked (TVL) metric.
According to DeFi Llama, a website that tracks the TVL of various DeFi protocols across different chains, Solana’s TVL has surpassed $1 billion for the first time since October, when it suffered a major network outage that lasted for more than 16 hours.
The outage, which was caused by a denial-of-service attack that overwhelmed the network with transactions, resulted in a loss of confidence and trust in Solana’s reliability and security. Many users and developers migrated to other chains, such as Ethereum, Avalanche and Polygon, which offer more stability and interoperability. Solana’s TVL plummeted from over $10 billion in September to less than $500 million in November, according to DeFi Llama.
However, Solana has been working hard to restore its reputation and attract more users and projects to its ecosystem. The network has implemented several upgrades and fixes to improve its performance and resilience, such as increasing the transaction limit per block, adding more validators and enhancing the network monitoring tools.
One of the main drivers of Solana’s growth was the launch of several new projects and partnerships on its ecosystem. For example, Solana hosted the first-ever decentralized metaverse hackathon, where developers created immersive virtual worlds and experiences using Solana’s technology.
Solana also partnered with Audius, a decentralized music streaming platform, to integrate its token and governance system. Moreover, Solana attracted more investors and users with its low fees and fast transactions, especially as other networks suffered from congestion and high costs.
Solana’s green December was a testament to its potential as a leading blockchain platform for the future of decentralized applications. Solana’s team and community are constantly working to improve its technology, security and usability. Solana’s vision is to create a global network that can support billions of users and devices, without compromising on speed, scalability or security.
Solana has also launched a $20 million fund to support DeFi projects building on its platform, in partnership with venture capital firm ROK Capital. Additionally, Solana has benefited from the recent integration with FTX, one of the leading crypto exchanges in the world, which allows users to easily access Solana-based DApps and tokens.
As a result of these efforts, Solana’s TVL has been steadily increasing since December, reaching over $1 billion on December 16th. This marks a significant milestone for Solana, as it shows that the network is regaining its momentum and popularity in the DeFi space.
Some of the most prominent DeFi protocols on Solana include Serum, a decentralized exchange (DEX) co-founded by FTX CEO Sam Bankman-Fried; Raydium, an automated market maker (AMM) and liquidity provider; Saber, a cross-chain stablecoin exchange; and Mango Markets, a decentralized margin trading platform.
Solana’s TVL is still far from its peak level of $10 billion, but it is showing signs of recovery and growth. Solana’s native token, SOL, has also rebounded from its low of $97 in November to over $180 at the time of writing, according to CoinGecko.
Solana’s supporters believe that the network has a lot of potential to become a leading platform for DeFi innovation and adoption, given its high speed, low fees and scalability advantages.
However, Solana also faces fierce competition from other chains that are vying for the same market share and user base. Solana will have to prove that it can maintain its network stability and security, as well as foster a vibrant and diverse ecosystem of DApps and developers, in order to sustain its growth and success in the long term.