Plans are currently underway at JP Morgan Chase & Co. to spin off Quorum, a proprietary blockchain platform. The project is aimed at improving the reputation of Quorum as an autonomous entity among investors. The source code of the platform will be free to developers, who in turn can modify and redistribute the software.
According to reports, the project is still its embryonic stages. Nonetheless, JP Morgan Chase has already released a press statement affirming their belief in decentralized ledgers as a fundamental aspect of future business-oriented projects. This is evident through the several blockchain solutions the bank has invested in. Furthermore, the press release also stated that in recent years, Quorum has outdone itself and its services transcend beyond the financial sector.
Quorum came into existence in 2016 after a partnership among JP Morgan Chase, EthLab and Jeffrey Wilcke, an Ethereum developer. The ETH-based platform boasts of incredibly fast processing speeds as well as impenetrable security as only verified users can authenticate the smart contracts.
Will JPMorgan Fork From Quorum Blockchain Project?
Presently, nobody knows the fate of JP Morgan Chase employees that are currently working with Quorum. As per reports, Amber Baldet, the lady in charge of JP Morgan’s blockchain operations, is still undecided on whether to remain at the parent company or switch sides to Quorum. Her declination to respond to the matter further fueled speculation on the subject.
While blockchain has been lauded as the precursor for the success of many industries, it has not been the case in the banking industry. Over the years, banks have forked out colossal amounts towards blockchain projects, hoping that it would make transactions simple and affordable. These efforts, however, have no bore any fruits as the blockchain technology is still its early developmental stages.
Last year, the R3 Blockchain Consortium tumbled after JP Morgan Chase led the way as several member banks abandoned the syndicate. At the time, no member institution could rival the $50 million funding JP Morgan invested towards R3-competitor Digital asset project. Additionally, the company is a prominent member of the Hyperledger Project which is ran by the Linux Foundation.
Initially, Quorum was created for the Ethereum network, a move meant to endorse ETH amongst the investor community. In the future, JP Morgan Chase intends to collaborate with the Australia and New Zealand Banking Group as well as the Royal Bank of Canada to develop an interbank payment system.