IndiBloc : Compliant Distributed Ledger
We are developing a community driven DLT (Distributed Ledger Technology) compliant with Indian Laws.
As per our understanding Blockchain technology compliance of the Indian laws, developed over an year spent consulting with legal experts and chartered accountants, following needs to be adhered to:
- RBI Act: bars cryptocurrency minting
- SEBI Act: bars ICO (Initial Coin Offering) & creation of cryptocurrency exchanges.
- Anti-Money Laundering (AML) standards/Combating of Financing of Terrorism (CFT) rules, bars using Anonymous Public Networks, for commercial transactions.
- Foreign Exchange Management Act needs to be adhered to if you wish to exchange crypto tokens in foreign crypto exchanges.
To top it all, RBI, the central bank has “ring fenced” its regulated entities, from dealing with any customers dealing in cryptocurrencies. see, section 13: “ Ring-fencing regulated entities from virtual currencies”
Therefore, we need to develop a DLT suitable for transactions within India as well as exports to foreign business partners.
IndiBloc network will be a cryptographically secure distributed ledger. Its authenticity verified by trusted network consensus operators and auditors.
The Public Anonymous Blockchains globally sequence the transactions into blocks. This is necessasy as they all have a native cryptocurrency embedded into its architecture. Since, permissioned consortium blockchains deal with fiat currencies, they do not have any real need of a globally sequenced bloc chained ledger.
Thus the next generation blockchain architectures like Corda, IOTA and Hashgraph are moving away from blockchain towards transaction chaining. even though IOTA has a native cryptocurrency it still has moved away from blockchain.
Instead of creating blocks of globally sequenced transactions, we are now using IPFS Merkle DAG to chain the transactions. In the first version we are using a Private Ethereum Network for sequencing the Transactions; similar to side chaining concept.
In the next versions of the IndiBloc, we will be leveraging RAFT cluster over IPFS, to build the consensus. We are Modeling upon the IPFS Cluster design.
We will be open sourcing the code once we reach a stable milestone with a couple of use-cases working.
