JP Morgan Develops Privacy Enhancement Features to Its Quorum Blockchain Based on Ethereum
The recognized investment bank JP Morgan Chase is working on some privacy features that would allow is Quorum blockchain to offer more private payment services to clients. This is according to a recently released report by CoinDesk.
JP Morgan Adds Privacy Features to Quorum
The largest bank in the United States has built an extension protocol to the Zether protocol that will be adding a further layer of anonymity to the transactions processed on the network. As per the report, the intention is to open-source the extension on Tuesday and use it on the Quorum blockchain.
The Zether protocol has been developed by recognized technology researchers and it uses zero-knowledge proofs (ZKPs). This system allows one of the parties to prove knowledge of a secret value without providing any detail about this secret.
On the matter, Oli Harris, JPM’s head of QUorum and crypto-asset strategy, commented:
“In the basic Zether, the account balances and the transfer accounts are concealed but the participants’ identities are not. So we have solved that. In our implementation, we provide a proof protocol for the anonymous extension in which the sender may hide herself and the transactions recipients in a larger group of parties.”
This is just one of other blockchain and crypto-related projects that the financial institution has been working on during the last months. It is worth mentioning that JP Morgan announced that it will be releasing the so-called JPM Coin in order to improve the services that it offers to clients when they make transfers.
According to Mr. Harris, the confidential payments architecture that Zether implemented incorporates an account-based approach that is currently employed by Ethereum. The extension could benefit users of Quorum and also enterprises building on top of other variants of the Ethereum network. This accounts-based approach consistent with Ethereum works in a different way than the current unspent transaction output (UTXO) that is used by Bitcoin.
Financial institutions are working with blockchain technology in order to be able to remain competitive in a market that is full of new startups, companies, and developers creating innovative solutions for the financial sector.