January 7, 2017
J.P. Morgan’s ambition is to establish the new norm for banking and it has identified blockchain as the means for doing so.
Quorum, J.P. Morgan’s multi-million-dollar version of blockchain, could single-handedly become the basis on which all future banking will be performed and decentralised – commercial, investment, private…you name it. At the same time, J.P. Morgan won’t be building this vision alone. Keeping in line with the spirit of blockchain, application development on Quorum is not solely in the hands of J.P. Morgan’s programmers but freely open to developers worldwide. Being open to the public makes its scope of applications limitless and Quorum the ‘world’s most tested financial system’.
Quorum has the power to facilitate instantaneous trade execution across all asset classes, transfer of ownership, exchange of payments, as well as the movement of collateral. On a bigger scale, the concept of arbitrage and profits from high-frequency trading will no longer be relevant. LIBOR rates will be determined using rules-based blockchain methodology ensuring the production of fair values.
Quorum will redefine our current outdated concept of automation including the use of robotics, straight-through-processing and integrated data layers. Quorum will eradicate the current reconciliations-based model of the finance industry worldwide and the use of central counterparties by replacing it with instantaneous settlement cycles and real-time reporting.
The ultimate result is privacy but transparency only to those who need it, whatever the application may be. A lot of financial activity nowadays is at the whim of the regulators. While Quorum will facilitate the requirements of centralised regulatory bodies today, what many do not realise is that the central tenet of blockchain is that anyone could be the appointed regulator, removing the absolute need for a centralised entity tomorrow.
Furthermore, the Quorum blockchain provides the ability for people to deal with other actors without needing to fully trust them as it moves away from a relationship-based model to one on unconditional fairness and rules.
Quorum is here to stay. It is designed with flexibility in mind and reuses as much of the existing Ethereum technology as possible so that any updates to Ethereum will be integrated seamlessly. This gives it a head start over rivals who have invested in private blockchain networks which are limited by definition.