R3 CEV Takes on Bitcoin with Launch of Private Distributed Ledger Pilot

R3 CEV is a New York-based financial innovation firm that Mike Hearn joined as the chief platform officer after his announcement that Bitcoin was a “failed experiment.” R3 focuses on distributed ledger technology and has partnered with 42 banks around the world, such as Goldman Sachs, HSBC and Toronto Dominion, over the past year to create a blockchain consortium of financial institutions.

R3 CEV believes in the value of a private “permissioned” blockchain, rather than a public “permissionless” blockchain. The entire world has access to a permissionless ledger, and it requires a digital asset, such as bitcoin, to operate as a financial incentive to encourage people and businesses to contribute their computing power to secure the network. This also deters fraud as the network grows larger. Only a select group of trusted parties is required to maintain a permissioned blockchain.

https://bitcoinmagazine.com/articles/r-cev-takes-on-bitcoin-with-launch-of-private-distributed-ledger-pilot-1453321957