Overledger SDK Update

February 2020

Today we are releasing a foundational update to the Overledger SDK, starting with Javascript following by Java SDKs. You can watch the technical walkthrough and tutorial by Dr Luke Riley, Head of Innovation and R&D, Quant Labs.

We’ve been working tirelessly to further enhance the capabilities of Overledger and preparing the technology for multi-chain environments.

In this release, we have enabled standardisation of objects to abstract and simplify how to interact with different types of blockchains (UXTO and Account-based) in a common model.

We’ve also created the ability to directly deploy, invoke and query smart contracts directly through Overledger.

Finally, this update sets the foundations to build the ecosystem for the Overledger Network, allowing stakeholders other than Quant to write any type (DLT and non-DLT) Overledger connectors and sets up the ecosystem with multiple entry points for Overledger Gateways.

These updates open up the integration capabilities of Overledger to 3rd parties and create the foundations for the Overledger Network.

Standardisation

To solve this challenge for enterprise and developers, we’ve created the following principles to Standardisation which also aligns to the work in ISO TC307 and academic work from Dr Paolo Tasca and Dr Claudio Tessone:

  • Each object represents a core component of DL systems

Taken together, this will provide users with a clear distributed ledger data standard, which will be publicly released as we move closer to the deployment of Overledger Network. Furthermore, our object definitions will be released in versions to reflect continuing developments.

Without Overledger, you would have to individually code objects and how to interact with them manually for your applications. This is further amplified if you use different blockchain types for your application (UTXO vs Accounts Based) and further still when you have a multi-chain approach to then customise each interaction and object for all blockchains involved.

Practically, we have created the following framework to cater for objects and smart contracts:

  • Firstly we have integrated the transaction and smart contract objects

Demonstration 1 — Overledger Transaction Object Standards

In the SDK Update video we show:

  • A UTXO standardized transaction being defined and deployed for the Bitcoin blockchain

Demonstration 2 — Smart Contracts through Overledger

In the SDK Update video we show smart contracts for the Ethereum blockchain can be handled through Overledger:

  • being deployed

What does this update mean and use cases in Financial Services?

Use Case 1 — Digital Asset Funding

Here we look at an example between a Digital Asset Trading platform implementation and a Funding platform using a pegged digital currency:

  • Bank A is part of the digital asset trading consortium’s platform and has a subsidiary providing funding to its trading operations

Overledger Architecture & Flows

  • Overledger provides a bridging capability for Bank A’s node on the digital asset trading network and Bank A’s funding operations network to interconnect

Business Benefits

The smart contract functionality in our Javascript & Java SDK allows business logic to be abstracted away from the underlying chains. This is useful when deploying a new version of the contract for peer to peer escrow as code:

  • As new types of digital assets are introduced a highly automated smart contract templated generation and deployment mechanism would be required in both networks

Overledger Possibilities

  • Overledger’s SDK smart contract capabilities allow the foundations for this templating and business logic for each digital asset and funding operation to be established

Enterprise Benefits

  • Cost reduction for Bank A through Automation as maintenance code will be reduced as features are exposed in our SDK for deployment

Use Case 2 — Business Networks Interoperability

In this use case, a Bank participant involved in multiple consortiums. Multinational “Bank M” is part of we.trade, Marco Polo, and JPM’s Interbank Information Network (IIN):

These are implemented on different DLTs (HLF, R3’s Corda, and JPM Quorum respectively)

  • Bank M will require multiple nodes, supporting infrastructure, and operational capabilities

Overledger Architecture

  • Overledger provides a network gateway compatible with Enterprise DLT networks avoiding complex node interactions as shown here

Business Benefits

  • Bank M implements Overledger to provide a gateway node for all areas of the business in Bank M

Overledger Possibilities

  • Interchange to allow for Rate conversion and broker modules

Enterprise Benefits

  • Best Execution — business rules for routing and pricing choice can be implemented and managed in one place for MiFID II compliance

Looking ahead

We’re very pleased to release this update for our clients and developers to create new possibilities and use cases with the new features and capabilities across industries. We’ve now laid the foundations to open up Overledger connectors and have a vibrant ecosystem of interoperable networks and APIs make possible by Overledger and power core of the Overledger Network.

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