Following IBM’s reports that by 2017, 15% of global banks and financial institutions will be adopting blockchain technology, J.P. Morgan Chase & Co. has just announced its efforts to create its own private transacting platform.
Based on Ethereum, a computing platform that uses blockchain, the global bank unveiled Quorum—a system that allows for private, secure, peer-to-peer transactions. With Quorum, J.P. Morgan Chase & Co. hopes to be the one of the first in realizing the benefits that the new networking tech offers.
In an interview with The Wall Street Journal, J.P. Morgan Quorum Project Lead Amber Baldet said, “we have people building the most stress-tested financial systems in the world.”
Aside from vamping up their database system, the New York City-based multinational institution hopes that Quorum will be able to handle a number of transactions in real time, with a smart contract service that vastly improves efficiency. The system is also meant to greatly increase security by making transactions available to only those who are involved in the transaction, or those with regulatory status.
Although it is still under development, this move by one of the world’s leading banking companies shows that blockchain is rapidly gaining traction in the financial sector. However, we will have to wait to see if it will be a success.