New York, 17th May 2018,
Axoni and Clearmatics have collaborated to successfully demonstrate a derivative contract modeled using Axoni’s domain specific language, AxLang, and the subsequent cross-chain settlement of the resulting two cash payments using the interoperability protocol, Ion, across currency chains built by Clearmatics designed to provide settlement finality. Prototyping the settlement of payments across different permissioned, Ethereum-compatible ledgers is a significant advancement in the long-term applicability and usability of blockchain technology.
The enterprise blockchain space has multiple types of distributed ledger solutions built by various technology providers. Interoperability will be an important step to maximize the potential of the technology over the current patchwork of legacy infrastructures. This demonstration by Axoni and Clearmatics at Consensus 2018 of a cross-chain settlement of payments resulting from a derivative transaction shows that interoperability between blockchains can be achieved, and that true end-to-end value creation is possible, from trade agreement to settlement.
In the demonstration, an option exercise was modeled in a smart contract coded in AxLang, a new Scala-based programming language developed by Axoni which supports functional programming and enables formal verification of smart contracts for Ethereum-compatible networks. Widely publicized incidents involving faulty smart contracts have emphasized the necessity of secure application development. AxLang’s design and its support of formal verification were driven by the need of its clients, the world’s largest financial institutions, for whom Axoni is implementing the broadest reaching and most ambitious permissioned ledger production projects in the world, including post-trade settlement for $11 trillion notional of credit derivatives.
Ion is an Open Source Interoperability protocol created by Clearmatics that performs atomic swaps across multiple, turing-complete blockchains. Ion facilitates cross-chain settlement and supports multiple use cases including delivery vs payment. Counterparties escrow funds on unrelated chains and achieve settlement finality once specific state changes have occurred and supporting cryptographic proofs has been provided. Ion is Plasma like in design, aims to support decentralised economic models and provides the cash leg for trades executed across an ecosystem of Blockchains.
Axoni is a New York-based technology firm that specializes in distributed ledger infrastructure. Axoni’s clients include many of the world’s largest financial institutions and capital markets infrastructure companies. The company was founded in 2013 by a team of distributed ledger technology experts and offers blockchain technology deployments, distributed application development, and enterprise tools.
Clearmatics is a London-based technology company building member-owned and governed distributed systems that automate the execution of contracts, processes and the transfer of economic value. Clearmatics works with firms that have the ambition to reinvent the industry’s business models and drive adoption of a more efficient, transparent and resilient next-generation market infrastructure. The systems are called “Decentralised Clearing Networks” (DCN’s). The company has a has a special focus on the capital markets vertical and has previously collaborated in the space, demonstrating in 2016 integration of OpenGamma’s financial function library with the EVM. Clearmatics’ flagship project is the Utility Settlement Coin, a consortium of large financial institutions building a multi-currency, distributed settlement system for a digital cash asset that this fully collateralised by cash at the central bank.