The global leader in financial services, J.P.Morgan, is exploring the potential of blockchain technology by working on its blockchain-based Quorum platform.
One of the global leaders in financial services, J.P.Morgan, is exploring the potential of blockchain technology by working on its blockchain-based Quorum platform.
Quorum is a version of Ethereum that focuses on enterprises. The service is aiming to provide high speed and high throughput processing of private transactions within a permissioned group of known participants, according to the bank`s website.
Also, the solution is open source, free to use and tailored for enterprises. As J.P.Morgan claimed, the service addresses specific challenges to blockchain technology adaptation in the sector. Some of them are listed as follows:
- Privacy and transparency
- Performance and throughput
- Permission and governance
The bank wrote that the service is GPL/LGPL licensed, making it free to use in perpetuity and open for experimentation.
“Quorum is designed to develop and evolve alongside Ethereum. Because it only minimally modifies Ethereum’s core, Quorum is able to incorporate the majority of Ethereum updates quickly and seamlessly.”, according to J.P. Morgan.
Global banks turn to Blockchain
The Quorum platform confirms the report of technology company IBM, which predicted that 15% of global banks and financial institutions will be adopting blockchain technology by 2017.
Blockchain is indeed the new hype in the banking world, with many banks forming consortiums to test the potential use of the technology. Some of the areas where blockchain technology can be applied are reported to be clearing and settlement, trade finance and others, according to Financial Times.
Central banks are also exploring the potential for transferring their payments systems on to blockchain technology. Some of them are reportedly considering the launch of their own digital currencies. For example, the online media has reported about Japan, Russia, and Estonia – all of them exploring the option of launching a state-owned digital currency.
Time will show whether major banks will manage to implement the trendy technology in the best possible way. Their efforts could lead to improved services and happier business and private customers.