Chain´s technology sits at a conceptual midpoint between decentralized cryptocurrencies like Bitcoin and centralized custodial models like a bank. On any given Chain blockchain network, the creation, control and transfer of assets is decentralized among participants, but the operation of the network is governed by a designated set of entities known as a federation. This model allows firms to move financial assets of all kinds with the seamlessness of digital currency while maintaining the governance standards, scalability, and privacy required in financial markets.
The assets on Chain blockchain networks are not new cryptocurrencies but are rather issued assets like currencies, securities, derivatives, gift cards, and loyalty points. Because these types of assets are issued by financial institutions and governments, we‚´ve designed Chain´s protocol and platform around the needs of these issuers and the firms that custody these types of assets. In fact, we´ve designed Chain´s software together with leading financial organizations in an iterative, use-case driven process over several years.
Source: chain.com website