Promoting the financial industry through open source cross-border payments IBM supply chain and blockchain blog

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Financial Services, Payment, simplifying inefficient processes are our blood. So it’s no surprise that my colleague and author of this article Nitin Gaur and his team solved unimaginable problems four years ago by establishing a global payment network for remittances and interbank payments.

As if this is not challenging enough, the team has also designed powerful payment operations for various regulatory and compliance requirements, aiming to break all traditional ways of thinking and become more open and transparent.

The pandemic has forced many companies and industries to re-evaluate their strategies, customers, and teams. Our cross-border payment network (also known as IBM World Wire) is no exception. We carefully studied the prospects and strategic priorities of operating payment networks and licensing. Therefore, at the end of 2020, we will shift our focus from operating the network to applying what we have learned to our customers as a service accelerator for our financial institution customers and payment providers.

Understand how digital assets can improve security and scalability to speed up settlement

Therefore, we are happy to announce that recently (after dealing with a lot of red tape), we have open sourced the code behind IBM World Wire! We are committed to the open source community and use the knowledge we learn to accelerate our customers.You can find Code is here.

The untapped potential of cross-border payment networks

This is a cutting-edge cross-border payment network, powered by Stellar Blockchain The internet. The core value of the network is to resolve the costs and frictions of cross-border payments.

As an alternative payment track, it aims to reduce costs, eliminate friction, and improve settlement efficiency. Starting with money transfer operators (MTO), the network is designed to expand to other payment streams, including B2B, bank, and corporate payments.

We designed the original IBM World Wire to reduce the cost and friction of cross-border payments. We are happy to share it with the open source community. come and see:

• Using the Stellar network, the network uses Lumens as a bridge currency-essentially a value unit used for value transfer and transaction cost calculations
• All currency transactions (except lumens) in the Stellar network take place in the form of credit issued by anchors, so anchors act as a bridge between existing currencies and the Stellar network
• An anchor is an entity trusted by network participants to hold their deposits and issue credit for these deposits to the Stellar network
• For example, credit issuance means digital debt that requires out-of-band settlement through traditional railways.The idea is to provide an option for the host in the network to issue credit or Stablecoin Instant settlement-solve various business cases and cost points of the ecosystem and network operators.

In-depth understanding of cross-border payment networks

The network is an application programming interface (API) payment product designed to support the money transfer services of financial institutions.These software services use Blockchain Network and API. IBM acts as the network operator and hosts the validator nodes. Transactions between participants are processed according to the consensus algorithm defined by the blockchain network.

As a network operator, IBM created a network account in the name of the participant, which was controlled by the participant, including for fund exchange and value transfer. These accounts are exclusively used in conjunction with IBM’s software services. Participants communicate and exchange information with each other through the blockchain network, and transfer value between them through their use of the network.

Participants can settle transactions directly outside the network through digital obligations, or settle transactions on the network through virtual currency or other means of transfer. Digital assets This is done between their accounts through ledger entries maintained in the blockchain network.

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