Consensus with ConsenSys
Establishing consensus is an integral part of any blockchain-based platform, and if today’s funding news is any indication, it is also an essential part of expanding ConsenSys’s business capabilities. The software technology company has invested $6.5 million in DrumG Technologies, a startup formed by Tim Grant, the former head of business development at ConsenSys competitor, R3. The funding announcement comes on the heels of DrumG’s unveiling. The startup was formed in June of 2017, yet has only just delivered their first formal public announcement.
ConsenSys has welcomed DrumG into their fold of projects working within the enterprise distributed ledger space. According to Joseph Lubin, Co-Founder of Ethereum and Founder and CEO of ConsenSys, “We are excited to partner with DrumG Technologies as a strategic investor and as a part of our broad portfolio of activity in the enterprise distributed ledger space. The team’s proven experience in delivering enterprise solutions to regulated capital markets, combined with its deep knowledge of the blockchain technologies makes it a valuable part of the ConsenSys global financial services offering.” As a part of the deal, Lubin will serve as the only outside member of DrumG’s board of directors and ConsenSys will take a minority stake in Grant’s company.
Grant expressed delight with the deal and Lubin’s involvement in DrumG, calling Lubin an “industry luminary.” He continued, “We are also excited to enter the marketplace with our unique ledger appropriate positioning and to play a significant role in driving towards the generation of true business value via the deployment of enterprise blockchain networks.”
In DrumG’s public announcement, Grant states that the company does not build blockchains, but develops and operates “…solutions and networks ON blockchains.” He also states that the company is “not tribal or religious about technology,” only that “[w]e are only religious about delivering results. We want to be known as the company that genuinely understand the true strengths and limitations of all the enterprise blockchain platforms out there.”
The company has begun working on two enterprise applications to achieve these goals. The first, coined as the Titanium Network, will be built with Credit Suisse as a network founding institution. DrumG describes the network as “a faster, more capable and significantly cheaper option leveraging blockchain technology, returning control of valuable OTC data back to the banks and enabling true data ownership.” They expect to launch Titanium sometime during the second quarter of 2019.
The second project leverages R3’s Corda Enterprise platform to build a “post-trade reconciliation network for hedge funds, prime brokers, fund administrators and auditors, enabling a validated, auditable and permissioned view of transactions and holdings between market participants.” This project is expected to launch late 2019.
DrumG’s ultimate goal is to connect businesses and technology to facilitate the rise of what Forbes quotes Lubin as describing “The decentralized web future — web 3.0, linking corporations to public blockchains — that’s definitely an interledger future. It’s going to be hundreds of thousands of decentralized protocols for trusted transactions and automated agreements.” By removing the middlemen and centralized authorities, DrumG can help to bring about a financial system that is cheaper, faster, and more secure, allowing for the most efficient transactions possible.