JP Morgan had been reported to be exploring the crypto ecosystem, and it seems to have found its foothold in the form of Quorum, an enterprise-focused version of the Ethereum blockchain, that will use tokenized gold bars. The tokenization of gold bars with the use of blockchain technology so they can move on distributed ledgers without the standard problem of getting stuck during the transaction.
Initially, Quorum will operate where permissioning is manually managed, that will make users operate smart contracts using automated pre-programmed rules. Smart contract governance tools manage an agreed upon entity to have operational control and mandate cybersecurity best practices. The system is integrated with Comae’s Porosity, the first decompiler for the Ethereum Virtual Machine.
John Olesky, Managing Director, Co-head Loan Platforms, has commented on the project:
“Quorum can privatise transaction blocks and restrict their delivery without breaking the blockchain; this ensures your data is only routed to its intended recipient – and no one else. Quorum also allows us to support upgradable contracts, and in this space, I believe JP Morgan’s technology is superior.”
Quorum operates as a ethereum-based blockchain and is designed to evolve concurrently Ethereum as it only minimally modifies Ethereum’s core allowing it to integrate Ethereum updates as they are released. The main goal of the project is to garner digital trust without reliance on an third-party authority.
The development of Quorum was fueled by the partnership of JP Morgan and Ethereum Enterprise Alliance. The developers aim is to provide solutions for the banks’ most unruly issues by supplanting the current system of multiple databases being compiled with a single immutable record of transactions. The pressing issues being addressed include long and expensive settlements, system breakdowns and transparency of risk exposure.