Designed to provide a platform for foreign exchange transactions, the startup is now spinning off part of its technology stack in a bid to make its immutable, shared database system more widely accessible to companies looking to innovate with blockchain.
The wholly-owned subsidiary – code-named “Babylon” – will provide what Cobalt co-founder Adrian Patten calls an “immutability server” designed to log as many as 30 million transactions per second into any number of public or private blockchains. While the server itself doesn’t conduct transactions, it uses a one-way algorithm to verify the accuracy of payment instructions before a transaction is completed.
Speaking with CoinDesk at Cobalt’s London offices, Patten compared the Babylon technology to a decentralized Fort Knox, stating:
“The gold is there. People know how much is in there. We don’t have to count it every single time we do something, we just need to know it hasn’t moved. It’s really simple.”
As a result of such simplicity, Patten believes he’ll be able to provide services similar to centralized solutions, but for less than 1 cent per transaction. Further, he sees such an offering as useful in ways that exceed Cobalt’s original requirements, positioning the spin-off as a way to pursue those ventures without distractions.
For example, while Babylon’s first client will be Cobalt itself, the spin-off has already begun to explore use cases with clients outside its parent firm’s target area by looking to log geolocation data for self-driving cars…