JPMorgan To Use Zchash Privacy Feature

JPMorgan To Use Zchash Privacy Feature

JPMorgan will reportedly use technology from the company behind the Zcash digital currency to add a new layer of privacy protection for its users.

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JPMorgan will reportedly use technology from the company behind the Zcash digital currency to add a new layer of privacy protection for its users.

The technology from the Zerocoin Electric Coin Company (ZECC) will add private settlement of digitized assets on the Quorum distributed ledger, the enterprise-grade blockchain platform of JPMorgan.

Quorum has been developed within the company using the Ethereum protocol. It is also said to be the first corporate application that is said to use Zecc`s zero-knowledge security layer (ZSL). The latter is employed by Zcash and keeps the clients` transactions anonymous.

In this way, the bank is testing the use of digital currencies for settling enterprise-grade financial contracts. This will be done via Quorum.

“By adding the Zero-knowledge Security Layer into Quorum, we are able to explore how state of the art cryptographic privacy technology will enhance the next generation of financial services applications.”, as Suresh Shetty, JPMorgan executive director and blockchain center of excellence lead architect, explained in a quote for the publication.

As Forbes (forbes.com) opinionated in a report, lack of privacy and confidentiality in blockchain technology has caused some hesitation among banks who has considered using the technology. However, enabling privacy in smart contracts might help with applying the use of blockchains to transactions such as simple equity trades and complex derivatives, as the author of the article said.

Zooko Wilcox, ZECC chief executive, has also commented on the deal:

“I’m excited that our first enterprise customer is the most valuable bank in the world.”

ZECC has also joined the Ethereum Enterprise Alliance prior to establishing this collaborative project. Ethereum Enterprise Alliance is an initiative that tries to standardize a business version of Ethereum that launched in February. JPMorgan Chase was in fact one of the original members.

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