Details of a patent filed by JPMorgan Chase&Co. (NYSE: JPM) in October 2017 were finally published by the U.S. Patents and Trademark Office on Thursday. The leading investment bank plans to implement distributed-ledger-based system. It will be used to record transactions between banks via peer-to-peer network.
It is common practice for banks and authorities to dislike what they can not control or regulate, which is why they tend to oppose cryptocurrencies. Nevertheless the blockchain technology tempts them.
Why it is important
- Validating transactions and related parties is much easier with blockchain;
- Costs are reduced due to lack of intermediaries involved in cross-border payments;
- Storing information and safekeeping is part of the technology.
In the beginning of April the key executive of JPMorgan’s blockchain business Amber Baldet left the company to start a business of her own.
Baldet led product development for Quorum - a type of blockchain JPMorgan developed for enterprises to build business applications. Unlike Bitcoin (Bitcoin), Quorum is private, or “permissioned,” meaning that only authorized participants can join the network of machines that maintains it.
By Nadya Astam