Published: 2018-10-31 09:19:46
Earlier, CoinSpeaker has already reported that Quorum is a private blockchain-based transactions platform based on the code behind the Ethereum network. The platform was designed with an aim to provide an opportunity to use a publicly available system for confidential transactions.
Capacities of Quorum
Now this Ethereum based blockchain will enable miners to earn a premium on the global market which can be considered to be a sign of the beginning of a new era for traders who use the cutting edge technologies to find new opportunities to get profits.
When blockchain only started gaining momentum several years ago, it was applied mainly in the financial sector in the sphere of creating digital currencies. Nevertheless, now its application is not limited to only one sector, the distributed ledger technology is widely used in such areas as healthcare, education, banking and others.
Quorum, JP Morgan’s enterprise version of the Ethereum blockchain, ensures operation of smart contracts or automatization of processes in accordance with a set of rules. Quorum makes JP Morgan a really unique financial institution.
“We are the only financial player that owns the entire stack, from the application to the protocol,” stated Umar Farooq, JPMorgan Chase’s head of blockchain initiatives, commenting the development of Quarum.
The Quorum blockchain was created in the framework of JPMorgan’s partnership with Ethereum Alliance and its excellent performance together with a high level of privacy provided has managed to win attention of a great number of financial services users.
Tokenization of Precious Metal
Now, the organization seeks to tokenize assets with the use of blockchain technology. Blockchain technology will allow to digitize them with a view to transfer them to distributed ledgers. The idea was announced during the Sibos conference organized in Sydney last week.
Explaining this initiative, Farooq said:
“They wrap a gold bar into a tamper-proof case electronically tagged, and they can track the gold bar from the mine to endpoint. The use case being, if you know it’s a socially responsible mine, someone will be willing to pay a higher spread on that gold versus if you don’t know where it comes from.”
Tokenization of gold bars will enable direct trade between entities without any necessity to involve a third party such as a broker or an exchange.
Other Cases of Quorum Application
According to Farooq, tokenization of gold bars is not the only way to use Quorum. He also said that there are ideas to utilize this blockchain platform for the needs of secondary and capital markets as well.
The views and opinions expressed in the article JP Morgan’s Quorum Blockchain to be Used to ‘Tokenize’ Gold Bars do not reflect that of 48coins.com nor of its originally published source. Article does not constitute financial advice. Proceed with caution and always do your own research.