Digital Assets
KoreChain
The Infrastructure of Trust is implemented on the KoreChain, which is a fully permissioned blockchain that has no risk of forking, no mining fees, and no gas fees. The KoreChain is highly secure, with recourse for faulty transactions, and secure custody for all digital assets. This makes it less appealing to crypto-thieves and bad actors. The KoreChain is highly scalable with high throughput and minimal economic waste or environmental impact.
Secure
The KoreChain is a permissioned blockchain built on Hyperledger Fabric
Global
It is designed with safety and security as paramount requirements and hosted on IBM’s highly secure servers.
Validated
It is completely focused on global private capital markets and especially on tokenized securities.
KoreChain
KoreChain vs. a Traditional Blockchain
• The KoreChain is a permissioned distributed ledger
• Governed (and audited)
• Lifecycle management of KoreContracts and KoreTokens
• Event management and subscriptions to events that affect the tradability or transactions of the security token
• Artificial intelligence for supporting design time guidance, KoreContract execution, data analysis, governance, risk management, and compliance.
• APIs to integrate with the KoreConX functional all-in-one platform (for portfolio management, cap table management, shareholder management, equity management, issuance management and capital markets).
• APIs for consuming third-party services
• The KoreChain does not circumvent regulation or disintermediate any of the regulated entities in the private capital markets; instead, it provides a very efficient and fluid infrastructure for protecting the private capital market ecosystem and ensuring compliance with all the appropriate regulations
KoreNode
KoreNodes are a mechanism for entities that are regulated in at least one jurisdiction to participate in the KoreChain. Moreover, each KoreNode owner participates only in those transactions for which the operator is responsible and has regulatory accountability. All transactions are to be fully compliant with securities regulation and company law in various jurisdictions. Participation in a KoreNode ensures there is strong governance over securities transactions.
KoreNodes are a mechanism for entities that are regulated in at least one jurisdiction to participate in the KoreChain. Moreover, each KoreNode owner participates only in those transactions for which the operator is responsible and has regulatory accountability. All transactions are to be fully compliant with securities regulation and company law in various jurisdictions. Participation in a KoreNode ensures there is strong governance over securities transactions.
Business view: A KoreNode is an independent node on the KoreChain. A KoreNode allows regulated entities to participate on the KoreChain. Regulated entities are broker-dealers, transfer agents, law firms, auditors, regulators, and ATS platforms.
Technical view: A KoreNode is blockchain software that resides in the cloud. Cloud data centers are operated by the major Cloud providers such as Amazon, IBM, Microsoft, Google, Digital Ocean, and many others. These data centers are very secure and available 24 x 7 with very little downtime. Data is backed up regularly. Servers are monitored continually. A KoreNode consists of the following technical components:
Server machine that resides in a secure data center.
Hyperledger Fabric, which is an industrial-strength, permissioned blockchain.
The KoreChain (which is built on Hyperledger Fabric).
Smart contract software code, also called chaincode, that represents securities transactions.
Functions of a KoreNode
• Endorse transactions, which means the chaincode that runs on the KoreNode checks for the validity of the transactions. The documentation for this code is provided to the KoreNode owner and a number of tests can be run to ensure that the tests conform to the requirements of the validity of the transactions.
• Maintain a copy of the distributed ledger of transactions on the KoreChain.
• Onboarding New Shareholders Shareholders that are on the KoreConX platform are onboarded to the ATS platform through the KoreNode in a cryptographically secure way that also provides the ATS Operator the confidence that the data is verified and untampered.
The KoreNode operator can also onboard counterparties that may not be on the KoreChain, or to leverage the information on the KoreChain in case the counterparty is already on the KoreChain
• Ensure Credibility of KYC ID and AML Verifications First-time investors Recurring investors Re-run KYC on expiry AML for money-based transactions
KoreContract
KoreContracts, written in Golang, are fully-compliant smart contracts that include judicial foundations, Ricardian encoding, and full referenceability of transactions to contract clauses.
NFT
Non-Fungible Tokens are used to represent ownership interest in one-of-a-kind digital representation of assets, whether physical or digital. The underlying asset’s provenance is established and its custody is secured, both are recorded immutably on the KoreChain after consensus-driven validation.
The process of creating and NFT involves the Originator (original creator of the asset), Asset Digitizer (who creates the digital representation of the asset), Provenance Certifier (who examines and certifies the provenance, as necessary), the KYC/AML Certifier (typically, a FINRA BD), a Custodian (who takes possession of the underlying asset, as necessary), and a Transfer Agent (who ensures a compliant and orderly transfer and recording of the NFTs to primary and secondary investors).
What is a Non-Fungible Token (NFT)?
An NFT is a digital asset that represents another one-of-a-kind asset, whether physical or digital.
Why are NFTs used?
• To represent unique and valuable assets as transactional proxies
• To provide immutable and untamperable proof of ownership, whether in part or full
• To facilitate fluidity in trading and transfers of the underlying asset
• To enable decomposition of an NFT into fractional ownership
• To ensure authenticity of the represented asset during delivery or for audit
Technology Capabilities
• Onboarding of the complete characteristics of the NFT’s underlying asset (the issuer of the NFT will be responsible for the mechanism of establishing uniqueness and authenticity)
• Multinode blockchain network of business participants of the ecosystem
• An NFT smart contract
• Mobile App and Wallet for the ecosystem of the asset type
The KoreNFT Advantage from KoreChain
KoreChain’s KoreNFT (kNFT) solution is specifically designed for creating and maintaining NFTs easily, without code, and with full compliance. The kNFT solution is built on the KoreChain and includes KoreContracts, KoreRules, KoreMessaing, and KoreAPI.
What is a Stablecoin?
A stablecoin is a digital (crypto) currency that is pegged to a reserve asset that is deemed to be relatively stable. Stablecoins are collateralized with the reserve asset that is held in independent custody. For maximum confidence, stablecoins ideally should be redeemable in the reserve asset for full value at any time and with no questions asked.
Why are NFTs used?
• To bypass the traditional banking system
• To ensure stability to the value of the payment instrument
• To ensure stable storage of funds
• To create fluidity in transactions
• To transact in a cost-efficient way (compared to the traditional payment systems)
• To provide transparency
Technology Capabilities
• POS System Integration
• Multinode blockchain network
• Smart contracts for implementing merchant agreements and compliant usage
• Contract management system
• Mobile App and Wallet
The KoreStable™ Advantage from KoreChain
KoreChain’s KoreNFT (kNFT) solution is specifically designed for creating and maintaining NFTs easily, without code, and with full compliance. The kNFT solution is built on the KoreChain and includes KoreContracts, KoreRules, KoreMessaing, and KoreAPI.
Digital Securities – KoreStable
The KoreStable is a full stablecoin solution that provides the capabilities to create, launch, manage, and operate stablecoins in a fully compliant way.
