JP Morgan to use its own blockchain network Quorum to collaborate with other blockchain networks
JP Morgans blockchain lead Amber Baldet said the bank is planning to use its own blockchain network, Quorum to bring about collaboration across different blockchain networks.
A blockchain is a decentralised, public ledger of all cryptocurrency transactions that are constantly growing as ‘completed’ blocks are recorded and added to it in chronological order.
JP Morgan’s own blockchain network is based on the blockchain used by Ethereumm, the second leading cryptocurrency.
Whilst at an Ethereum based conference called EthCC based in Paris on March 9, Ms Baldet outlined her aims for the bank’s blockchain technology.
JP Morgan’s Quorum is the first project developed by its Blockchain Centre of Excellence (BCoE).
Ms Baldet explained how she speaks to other blockchain enthusiasts in the crypto community to try and establish common ground.
She said: “I spend a lot of time talking about ethereum and cryptocurrency and open blockchains to enterprises, businesses, central banks and corporates.”
Ms Baldet added that people designing different based blockchains seem to encounter similar problems. She said: “These problems really aren’t so far apart, it’s just that people are trying to solve the problems in different ways.”
She explained how people often want similar things in the blockchain community , however, she describes an occurrence called “crypto-balkanization”.
On that note, Baldet said how Quorum and Ethereum are incredibly similar as 95 percent of the software in both blockchains are identical.
She said: “It’s actually not changed that much, and that’s intentional, there’s very minimal modification.”
The Quorum blockchain has also implemented another layer of security by using the privacy-centric cryptocurrency zcash.
This is called the zero-knowledge settlement layer which only allows zero-knowledge Ethereum tokens which only reveal information such as transitional quantity and ownership.
The function of the token is not revealed.
Finance chiefs who have criticised bitcoin have highlighted the benefits of blockchain.
Mario Draghi, president of the European Central Bank (ECB) explained how he see the benefits of blockchain technology.
He said: “It is actually quite promising. It makes certain processes much faster an example would be that an invoice would not need to be settled, it can be done instantly.”
Last year, at the launch of Ethereum Enterprise Alliance , the founder of Ethereum, Vitalik Buterin called for collaboration between open blockchain and businesses, saying “we have shared challenges.”