by Joseph Young
Soramitsu, a Japanese digital identity blockchain startup, has proposed the open sourcing and development of an interoperable smart contract blockchain network to Hyperledger, with the support from leading Japanese technology firms.
The Hyperledger Project is an organization established by the Linux Foundation with the world’s leading corporations, financial institutions, and banks including Accenture, Airbus, Deutsche Group, IBM, JP Morgan, and Intel to create an open standard for private blockchain platforms.
In collaboration with some of Japan’s most reputable research institutions and technology firms, Soramitsu is attempting to develop and deploy a simple interoperable smart contract network to enable simple issuance and transfer of digital assets.
NTT DATA Corporation and other leading Japanese technology firms have sponsored the proposal and development of Iroha, which is expected to provide private businesses, financial institutions and organization with a simple blockchain architecture that is easy to understand, develop, and integrate.
The Soramitsu development team believes that blockchain networks are difficult and expensive to deploy due to the technical issues that arise during their development phase. It is particularly challenging to enable the issuance and settlement of smart contracts, which could lead to many unique use cases in various industries.
For instance, Soramitsu is already building a derivate insurance contracts platform using the blockchain technology as a member of the Hyperledger project. The company’s project, which is supported by one of Japan’s largest insurance firm Sompo Japan Nipponkoa Holdings, can be implemented outside the realm of finance, in applications such as weather derivatives.
Soramitsu intends to increase the availability of smart contract enabled networks to open opportunities for major companies in using the blockchain technology to reduce costs and increase security measures in operating labor-reliant and expensive tasks.
Some of the operations which the Iroha blockchain network will be able to oversee is payment and settlement, contract management, securities clearing, development of financial products, support applications in trade finance, manage data in the healthcare industry, and efficient compliance with Know Your Customer (KYC) regulations.
The blockchain network of Iroha, which is based on a new Byzantine Fault Tolerant consensus algorithm called Sumeragi, will enable businesses of any size to implement its network with substantially lower costs, as well as run smart contract-based applications with improved security measures.
The firm currently oversees research projects and developments with Japan’s leading research institutions such as the University of Tokyo, University of Aizu, and the Center for Global Communications. All of Korematsu’s partnering institutions and research firms will support the development of Iroha, by running experiments on Iroha’s local currencies and the network’s overall efficiency.
Once the proposal is accepted by the Hyperledger project and its members, Soramitsu will be able to collaborate with a wider range of partners and corporations in testing the network and finding easier methods in deploying blockchain networks to private companies.
The acceptance and validation from the Hyperledger project highlights that the Iroha blockchain project is on par with the organization’s blockchain standards.