Banking and Financial institutions are significantly going to be benefited by blockchain technology. Various banks have implemented blockchain based platforms within their organization to offer better customers services. Now, the popular bank JPMorgan Chase has upgraded its ethereum based blockchains. The blockchain developing team of JPMorgan Chase has designed a privacy feature for its Quorum- an ethereum powered blockchain. The new privacy feature will not only hide details of sender and receiver and the amount transferred but also hide the details of who is sending it. The news was revealed by one of the crypto sources on Tuesday.
Privacy features were first launched by cryptocurrency platforms such as Zcash, Monero, and others, and since its launch, they are receiving more demands from financial institutions, and now JPMorgan Chase is going to experiment with it.
Quorum Upgraded with Privacy Features
The leading bank of the United States, JPMorgan Chase has developed a payment protocol, Zether. Zether will add another layer of anonymity to the network that processes transactions. Zether is best suitable for Ethereum and other platforms of smart contracts. The Zether protocol is developed by a team of financial technology researcher and academics consisting of Dan Boneh, Benedikt Bunz, Mahdi Zamani, and Shashank Agarwal of Stanford and Visa Research University. The Zether protocol uses Zero-knowledge proofs (ZKPs). Earlier to this, balances of accounts and sending accounts were hidden by Zether but failed to hide the sender’s identities. Now, Zether’s new extension developed by JPMorgan’s blockchain team has modified it so as to hide sender details.
Zether protocol is completely decentralized one, uses the cryptographic protocol to hide payments. US-based financial institution will open-source the new extension on May 28th, 2019 and more likely to be used with JPMorgan Chase’s Quorum, the private ethereum of company.
This is the only blockchain project of JPMorgan that the institution was focusing for a month apart from others. Other news circulating about the largest financial institution was the launch of its JPM Coin. The plan of introducing it was to enhance the services that it provides to its customers when they transfer amounts.
Zether an extension for Ethereum based blockchains
The main goal of the privacy feature is to reduce the number of planned hacks and allow designing of contracts that needs privacy. Targetted hacks can be carried on an individual or on firms, especially those revealing a large amount of balances.
Informing about the new extension, JPMorgan’s Quorum head told to one of the crypto sources that
“In the basic Zether, the account balances and the transfer accounts are concealed, but the participant’s 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.”
The guarantee Zether is offering is much similar to Monero coin than any other privacy coin in the market. Zether has its own token ZTH, used to support the exchanges within these platforms. Basically, it offers a user-friendly and convenient platform to design smart private contracts.
According to reports, the leading financial institutional bank is busy working on its Quorum, a payment network powered by blockchain. JPMorgan bank has successful attracted 220 banks for its Interbank Information Network powered by Quorum. The bank has even launched its own JPM Coin, a stablecoin that is currently used to carry internal operations of the bank; the bank is planning to launch the coin for the public in the days to come.