Photo Credit To Jesse Baca Via Flickr
Blockchain technology was introduced to the world when the Bitcoin was launched. The technology makes crypto coins quite secure. However, many major companies are finding more uses for the technology outside the crypto space. They are realizing that blockchain technology offers major advantages compared to current systems. One of the finest examples is Quorum, developed by JP Morgan. Quorum is still a relatively new concept so it’s hard to gauge the interest levels. It’s evident that JP Morgan has interest in partnering with other large companies to aid the adoption of Blockchain Tech.
Despite the small sample size, we can see on Quorums website that Microsoft had some feedback. According to the site Microsoft is quoted saying “We’re thrilled to partner with a leader like J.P. Morgan to establish a foundation on which enterprises and partners can rapidly build and scale blockchain networks. Together, we’re taking a truly transformative technology like Quorum and making it available through the Azure platform to accelerate innovation for our customers.”
The entire platform is based on the same code that was used to create the Ethereum blockchain. As a result, it works in much the same manner as Ethereum with a few key differences. One of the most important is that it is a permissioned blockchain. That means only approved participants can view information on it, which is important for enterprises.
- It is Permissioned
Permissioned simply means that the Quorum network is only open to select clientele. The platform is implemented between parties that want to transact. With these permitted nodes, organizations can determine whether using the blockchain is important to them without having to expose their transactions to the public.
For a major corporation, confidentiality is important for its competitiveness as well as for legal purposes. Public blockchains make it hard for corporations to consider using them. To tackle the issue of privacy, Quorum has a private and public chain. The public side of the blockchain operates just like Ethereum. On the other hand, private transactions still have to be verified by the details are seen only by participants. To ensure that messages are secure and private, Quorum uses the Constellation system to encrypt messages sent between parties.
- Consensus Protocol
To achieve Consensus, Quorum uses the QuorumChain, which was created during the genesis block. This system is based on a simple majority voting system. To assign voting rights to various nodes, a smart contract was created in the first block.
The Quorum blockchain is quite fast. It is touted to be able to conduct hundreds of transactions a second. This is a huge improvement compared to BTC and ETH, which are quite slow. The creators of Quorum understood that speed was important for the mass adoption of blockchains and they made sure to improve on it.
Most of its speed is made possible by the use of a consensus mechanism that is efficient. It does not rely on many nodes like Ethereum, which runs on the Proof of Work mechanism. Besides that, this ensures that transaction fees are also kept low.
One of the largest financial institutions in the US- JP Morgan Chase backs Quorum. It has clear use cases and many banks looking to improve the efficiency of their transactions might find it quite useful. This technology could help introduce smart contracts and blockchain technology to the world of finance. Even those that do not sign up to the project will take notice of the potential this technology offers. The result could be a more efficient and transparent financial system. Recent reports have indicated that JP Morgan might create an independent company to oversee the project, thus encouraging mass adoption.