Startup R3 has announced plans to explore the space of decentralized finance. R3 was originally created as a consortium of banks interested in using cryptocurrency technology, and is the developer of the Corda corporate blockchain.
According to the announcement at the annual CordaCon summit, R3 will develop a DeFi network and Obscoro token focused on compliance with regulatory standards. The organization stressed that at the current stage the project is a proof of concept, and its immediate launch will take place only after obtaining the necessary permits from the authorities. So far, regulators have "questions that need answers."
"Our team is working on proving the concept of a private DeFi network project with unlimited access and the corresponding token," R3 reported. "Our goal is to design, test and prepare for launch from a technological point of view next year."
The concepts of "private network" "with unlimited access" may seem mutually exclusive. R3 explained that they intend to use the closed enclave of Intel SGX technology while maintaining the open nature of DeFi. In other words, Obscoro will combine the ability to conduct external audits with decentralization, free access and user privacy, according to a press release.
According to R3, Obscoro will also help solve the problem of frontrunning in DeFi, when miners, taking advantage of their position, are ahead of users' transactions and thus benefit at their expense.
"R3 is considering how to combine traditional finance and DeFi. We believe that we are in a particularly advantageous position to ensure such a combination. None of these directions can win separately. We believe that the future of the two worlds will become hybrid. We believe that DeFi needs to be secured from the consumer's point of view before they can reach mass distribution. At the same time, it is necessary to preserve the privacy of individuals."