The financial powerhouse JP Morgan continues its efforts to enhance privacy elements in its distinctive Ethereum iteration, Quorum. Ethereum fork, Quorum.
This advancement is attributed to the bank's blockchain engineers creating a tailored version of Zether an innovative zero-knowledge proof (ZKP) framework enabling users to hide transaction details on Ethereum or similar blockchains like Stellar. Morgan has evolved this into 'Anonymous Zether,' a version that also masks user identities along with transaction amounts.
On May 28, the bank made its Anonymous Zether open-source, offering everyone unrestricted access to the code.
Created by researchers from Visa and Stanford University, Zether revolutionizes privacy by using a smart contract called ZSC. Within Ethereum, ether (ETH) is channeled to ZSC, transforming to an equivalent in ZTH.
In essence, the ZTH produced isn't a new asset but rather a disguised form of ether transferred to ZSC. This ZTH can be used for private transactions, and with JP Morgan’s Anonymous Zether, both senders and recipients can remain confidential, not just the transactions.
Leaders at JP Morgan, such as John Hunter, the head of global clearing, have indicated that blockchain might streamline institutional transaction validations but have found mainstream tech only partly anonymous.
Here, Anonymous Zether provides a solution, enabling significant entities to use blockchain platforms without compromising operational privacy.
Interestingly, JP Morgan isn't alone in venturing into privacy-enhancing solutions. Recently, the global audit giant EY declared its plan to introduce a protocol called Nightfall Besides Anonymous Zether, EY is developing their ZKP protocol to assist businesses in employing Ethereum securely.
By launching these privacy technologies publicly, both Morgan and EY are announcing themselves as trustworthy proponents in the cryptocurrency landscape.
While both firms have opened their tools to the public, Morgan’s focus is on employing ZKP within its internal blockchain projects.
JP Morgan Intensifies Blockchain Initiatives in 2019
Among JP Morgan’s blockchain endeavors are the Interbank Information Network (IIN), facilitating bank transactions, and JPM Coin, a stablecoin surrogate linked to USD. Both surpass Quorum.
In discussing the IIN, executive John Hunter mentioned that the interbank platform is gearing up to introduce settlement features possibly during Q3 2019, positioning itself against cross-border payment stalwarts such as Ripple.
Hunter remarked that the IIN could verify transaction details instantly, addressing that about one in five traditional payments face delays due to basic transaction faults.
In a major crypto declaration earlier this year, JP Morgan disclosed its team had started on JPM Coin which would be pegged to the US dollar. Blockchain team leader Umar Farooq expressed limitless potential for the token:
“The potential applications are vast — any arena involving a distributed ledger with corporate or institutional players can benefit from it.”
Recently, JP Morgan collaborated with Microsoft in a strategic partnership where Quorum was the inaugural blockchain on Microsoft’s Azure Blockchain Service, streamlining enterprise builds on Quorum.
