J.P. Morgan Chase’s Quorum vs Ethereum
Quorum is only a blockchain platform based on Ethereum. Quorum provides a layer on top of Ethereum which enables it to perform private transactions and makes it more robust by using different consensus algorithms (Consensus algorithm is a process in computer science used to achieve agreement on a single data value among distributed processes or systems. Consensus algorithms are designed to achieve reliability in a network involving multiple unreliable nodes. As a result, consensus algorithms must be fault-tolerant.).
Quorum is an Ethereum based Distributed Ledger Technology, also known as a shared ledger technology. The DLT is a digital system for recording the transactions of assets in which the transactions and their details are recorded in multiple places at the same time. The spreading of information on the ledger information happens automatically on a peer–to–peer(P2P) network basis.
The Distributed Ledger Technology (DLT) may be shared either publicly or on a private basis among authorized users. With DLT, no central authority like a bank or intermediary manages the ledger. That makes it difficult to change or corrupt the information since the ledger is shared by all the users and not stored in a centralized place where it can be “hacked” and manipulated. Blockchain technology is a type of Distributed Ledger Technology. However, not all DLT uses blockchains. The difference is whether the information is stored as a chain of linked blocks or stored in a different configuration by using alternative algorithms. Blockchain technology is a form of DLT. The configuration of a blockchain system is based on storing data in blocks that are linked together and encrypted for security.
Big banks are fascinated by Blockchain Technology. J.P. Morgan Chase was one of them. J.P. Morgan Chase is one of the largest investment banks in the world, with $25 trillion assets under management. As part of their operations, they transfer money and/or ownership stakes every day, often internationally with other banks. What the blockchain technology can offer them is to cut unnecessary maintenance cost and bring the power of smart contract into their day–to–day business.
J.P. Morgan Chase partnered with Ethereum Enterprise Alliance to develop Quorum. This is a private blockchain that will be the bank’s new brain. The wealthiest bank of the United States partners up with the best. The purpose of the Quorum Blockchain is to achieve some desirable properties that are useful in a private blockchain. Quorum is a private fork of Ethereum and is an open–source digital platform. Quorum can produce new blocks as fast as every 50 milliseconds compared to Ethereum’s 15 seconds. This is 300 times faster.
About the Author
Pieter Lategan is the founder of Techno Magazine. He also blogs for the Free Online Magazine. He focuses on the business side of blockchain technology. He writes about businesses which will improve with blockchain, cryptocurrencies, and dApps.