The following design address the adoption curve of a derivaties ledger in a new decentralized paradigm.
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Layer 0 - Distributed Ledger / Store of events A trusted messaging service and a log of events. A store of Provenance. A standardization layer, a store of metadata. Access Control Layer.
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Layer 1 - A Standard Event Interpretation layer An event interepretation layer that provides a transparent set of state transfer functions (which are also persisted on a DLT platform). The design of this layer is setup to drive the adpotion curve.
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Hack 1 - A standard event store with event versioning. (This is a well solved problem and can be either delegated to the DLT of choice).
- Goals - All market participants can consume and produce their events into Layer 0. All interactions with Layer 0 are immutable and the DLT of choice or some other subsystem guarantees it manages a WAL of all messages.
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Hack 2 - A event transition store.
- Goals - Support on-chain and off-chain representations of event transitions.
- Goals - As the ISDA CDM event transitions are formally defined, we can represent all these events as pure functions we store on the chain. This allows for off-chain computation and validation of the transactions.
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Layer 2 - Integration Layers to existing Post Trade Processing Systems
- Goals - Existing trade processing systems must be able to Consume raw events
- Goals - Existing trade processing systems must be able to recompute trade events, for (simulation and backtesting usecases)
- Goals - DLT portability. A bank or participant must be able to freely transfer from one DLT implementation to another with the design of the given interfaces