ADR-0002: R3 Corda 5 as DLT Platform¶

Author: @MysterTech
Status: Accepted
Date: 2025-08-13
Deciders: @MysterTech
Technical Story: [optional link to ticket/issue]
Tags: dlt, corda, blockchain

Context¶

DealSphere platform requires a distributed ledger technology (DLT) platform for secure, tamper-proof transaction recording and multi-party business process execution.
R3 Corda 5 provides enterprise-grade DLT capabilities specifically designed for regulated financial services and complex business networks.
Team expertise includes blockchain development experience, and Corda's JVM-based architecture aligns with existing Java 17 runtime decisions.
PRD alignment: Security requirements and regulatory compliance for financial transactions are prioritized for Phase 1 core flows.

Decision¶

Adopt R3 Corda 5 as the distributed ledger technology platform for DealSphere Phase 1.

Rationale¶

Why R3 Corda 5 as DLT Platform?¶

Enterprise-Grade Security and Compliance: - Built-in privacy features with need-to-know data sharing principles. - Strong cryptographic foundations and secure communication protocols. - Regulatory compliance features aligned with financial services requirements. - Mature audit trails and transaction history capabilities.

Technical Architecture Alignment: - JVM-based platform compatible with Java 17 runtime decision. - Spring Boot integration capabilities for microservices architecture. - REST and gRPC API support for seamless service integration. - Familiar development patterns reducing team onboarding overhead.

Business Network Capabilities: - Multi-party transaction support essential for deal syndication workflows. - Smart contract (CorDapp) development for complex business logic. - Identity and certificate management for trusted counterparty networks. - Pluggable consensus mechanisms for different transaction types.

Operational Maturity: - Production-ready platform with enterprise support options. - Comprehensive monitoring and observability tools integration. - Docker containerization support for Phase 1 orchestration strategy. - Established backup and disaster recovery patterns.

Risk Management for Phase 1: - Proven track record in financial services implementations. - Active community and R3 support for issue resolution. - Clear upgrade paths and version compatibility strategies. - Minimizes experimental technology risk during initial platform delivery.

Performance Characteristics: - Optimized for financial transaction throughput requirements. - Deterministic finality for transaction settlement scenarios. - Scalable node architecture supporting network growth. - Efficient resource utilization in containerized environments.

Alternatives Considered¶

Hyperledger Fabric - Pros: Open-source platform with strong enterprise adoption. - Cons: More complex operational overhead; Go/Node.js ecosystem diverges from JVM stack; less financial services specific features. - Rejected: Does not align with JVM-based technology stack and financial services focus.

Ethereum (Enterprise) - Pros: Large ecosystem and developer community. - Cons: Significant development and maintenance overhead; security risks from custom cryptography; delays Phase 1 delivery timeline. - Rejected: Too high risk and development overhead for Phase 1 timeline.

Consequences¶

Positive: - DLT integration enables secure multi-party deal processing with cryptographic transaction integrity. - Corda's privacy model ensures sensitive deal information is only shared with relevant counterparties. - JVM-based development stack maintains consistency with Java 17 and microservices architecture decisions. - Enterprise-grade security and compliance features align with financial services requirements. - Established development patterns reduce team onboarding overhead.

Negative: - Requires team training on Corda-specific concepts (states, flows, contracts) but leverages existing JVM skills. - Platform lock-in to R3 ecosystem and potential licensing costs. - Performance limitations compared to traditional databases for non-DLT operations. - Additional operational complexity for node management and network coordination.

Mitigation Strategies: - Maintain abstraction layer between business logic and Corda-specific implementations. - Establish comprehensive training program for Corda development patterns. - Implement performance benchmarks and monitoring for transaction throughput. - Document all CorDapp development patterns and maintain code review standards.

Revisit Trigger and Target Sprint¶

Revisit Triggers:
Performance bottlenecks emerge that cannot be resolved through configuration or infrastructure scaling.
Regulatory requirements change significantly requiring features not available in Corda 5.
Major security vulnerabilities discovered that cannot be patched within acceptable timeframes.
Target Sprint:
Sprint 1 (DLT platform foundation established in Phase 1)

Guardrails¶

Must¶

Maintain abstraction layer between business logic and Corda-specific implementations to enable future platform migration if needed.
Establish performance benchmarks and monitoring for transaction throughput and latency.
Keep Corda version compatibility matrix updated and plan regular security updates.

Should¶

Document all CorDapp development patterns and maintain code review standards for smart contract logic.
Implement comprehensive testing strategies for Corda flows and contracts.

Won't¶

Allow direct database access bypassing Corda's data model.
Implement custom cryptographic solutions without R3 approval.
Deploy CorDapps without proper code review and security assessment.

Approvals¶

Review	Reviewer	Date (YYYY-MM-DD)	Status
Architectural Review	@MysterTech	2025-08-14	Approved
Security Review	@MysterTech	2025-08-14	Approved
SRE Review	@MysterTech	2025-08-14	Approved

Links¶

Technology Landscape: [DLT Platform] Sprint Plan: [Sprint 1 – Core Platform Foundation]
PRD: Security requirements and regulatory compliance

Related ADRs: - ADR-0001: Java 17 as Language/Runtime