JPMorgan Chase Bank has developed enterprise type Quorum blockchain based on the Ethereum DLT, thus enabling the smart contracts operation.
30 October 2018 | AtoZMarkets - The New-York headquartered banking giant, JPMorgan Chase has developed its own blockchain, Quorum, and has announced to use it in tokenizing gold bars.
Quorum Blockchain Will Create New Trading Opportunities
The new venture ensures users execute smart contracts, while at the same time, using a pre-program set of rules that will automate the process. The key factor of such move, according to the Financial Review, is to enable miners to earn a premium from the global bullion market.
In addition, it will help in providing new trading opportunities using the blockchain technology while providing high-grade privacy and performance in the upcoming decade.
The Financial Review quoted Umar Farooq, JPMorgan Chase’s head of blockchain initiatives to have said:
“We are the only financial player that owns the entire stack, from the application to the protocol...We are big believers in Ethereum.”
The Development of Quorum Blockchain
JPMorgan is easily the world’s most valuable bank by market capitalization with total assets valued at $2.534 trillion. In recent months, the bank has explored blockchain with the aim of eliminating unnecessary maintenance costs while harnessing the comparative advantages of smart contracts.
The newly developed initiative, Quorum is an Ethereum-based blockchain designed by the bank in partnership with Ethereum Enterprise Alliance, to work as an enterprise protocol.
Moreover, the usability of Quorum in a private blockchain installation was attained using battle-tested technology from Core OS. Farooq further indicated that the tokenized assets will be easily transferable using distributed ledger technology (DLT).
JPMorgan Chase Tests Blockchain
As reported by AtoZMarkets back in August, the CEO of JPMorgan Chase, Jamie Dimon stated that fiat payment apps are “the biggest potential disruption to our business.” He made the statement after Harward Business Review asked him about his views regarding the bank’s competitive threats.
Dimon did not, however, mention cryptocurrency as a potential threat but highlighted that Blockchain technology is “real and JPMorgan Chase would test Blockchain and "will use it for a whole lot of things.”
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