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.
Deployed on 5 major cloud providers and in 23 countries (and growing), KoreNodes are operated by regulated entities such as broker-dealers, secondary market operators, lawyers, auditors, transfer agents, due diligence providers, AML providers, share registries, corporate registries, custodians, regulators, and more. KoreNodes ensure validation and consensus of transactions so that digital securities are fully compliant with securities regulations, while regulatory oversight of operators ensure they are trusted participants.
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.
• 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
Re-run KYC on expiry
AML for money-based transactions
KoreContracts, written in Golang, are fully-compliant smart contracts that include judicial foundations, Ricardian encoding, and full referenceability of transactions to contract clauses.