In the field of technology Blockchain or DLT (Distributed Ledger Technology) is one of the major transformations that we have seen recently. Being one of the most universal and multifaceted technology. it has managed to garner the attention of many businesses around the world. In this blog, we will study the latest developments in blockchain in the financial sector. We are talking about Quorum. The most recent development which JP Morgan is bringing to the financial industry. one of the leading investment banks in the world. The inclination of big banks towards blockchain technology is unhidden. J.P. Morgan Chase has taken the initiative in this direction.JP Morgan come up with Quorum along with Ethereum Enterprise Alliance. It is a private blockchain and it is working as the bank’s new brain.
What is Quorum blockchain?
Quorum blockchain is enterprised focused version of ethereum. Quorum is ideal for a private transaction. for any application requiring high speed and high throughput processing. In simple words, it is ethereum based distributed ledger system. In the blockchain, it is private permission implementation of ethereum. which bolsters transaction and contract security.
The primary features of Quorum are:
- Transaction and contract privacy
- Multiple voting-based consensus mechanisms
- Network/Peer permissions management
- Higher performance
Transaction and contract privacy
One of the characteristics that banks look at is the confidentiality of data. Well, the current technology of Blockchain or Ethereum that we use fail to give a full guarantee of security of data. Since the key aspect of Blockchain is visibility and ease of accessibility is onethe banking and financial institutions restrain from using this technology. When it comes to Quorum, then it makes favourable concept. because its permissioned nature It brings the concept of public and private transactions. The public transactions are related to Ethereum but when it comes to the private transaction. then it is confidential, and the data is not exposed to the public. One of the key features which make the Quorum better to Ethereum or other blockchain platforms is Constellation. It secures the messages by enslaving it. In this enclave, there are previous transactions authenticity and authentication.thus making it a secure and safe mechanism having the cryptographically-heavy work relay within it.
Multiple voting-based consensus mechanisms
Unlike another blockchain mechanism. Quorum blockchain is based on voting consensus mechanism which is also known as QuorumChain. The operation of this consensus mechanism is very simple; it delegates voting rights to others. QuorumChain makes use of the smart contract. To assign voting rights. It not only assigns the voting rights but at the same time, it also tracks the status of all the voting nodes. Quorum transactions include:
- Global Transaction Hash
- Public State root hash
- Block maker’s signature
Network/Peer permissions management
When it comes to one of the astounding features of Quorum then you must know that it is a permission system which means that the Quorum network can’t be open to all. Only the approved and authorized people can be a part of this network. In the system, Quorum has a permission chain of people. the exchange takes place between participants who are pre-approved by a designated authority.
When it comes to speed of transaction in Quorum then it is more uppish than its contemporaries. As per the development team, the system can easily enough more than 100 transactions per second. which are higher than Bitcoin and Ethereum. Thus, for the banking and other financial institutions. Quorum is the preferable choice. The reason for such high speed is its simple consensus mechanism which allows faster transactions.
If we consider all the features of Quorum, then it’s an excellent tool for the banking companies. Yet it works with the restrictive mechanism, this diminishes the trust issues which the banking and financial institutions have when it comes to implementing blockchain. Quorum blockchain is promising blockchain technology. The fact that it is more ideal for real-world implementation. It is permission and hence can be used by the private organization. Another feature of Quorum blockchain is its performance, ability to customize through a smart contract, and overall transparency.