JPMorgan's Quorum: A Cross-Sector Blockchain Solution for Privacy Needs

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Still, most blockchain platforms get disqualified due to one major condition that is practically mandatory in the financial sector: privacy.

The nature of financial data makes banks and financial institutions some of the biggest targets for data breaches, and having client data on a transparent blockchain simply won't do.

JPMorgan understood this, and set about building a blockchain protocol that could be immutable and transparent without revealing all the details of transactions recorded on the ledger.

Microsoft takes a leading role in distribution and cloud adoptionIt seems that few understand the needs of enterprise clients better than Microsoft Azure, which has made Quorum one of the centerpieces of its Blockchain-as-a-Service platform, Azure Blockchain Services.

The new privacy engine was used as the standard one for Azure's managed blockchain service.

Further opportunities and lessons learnedThe permissioned blockchain space has a lot of competition, with R3 Corda and Hyperledger Fabric sharing many of the benefits that Quorum possesses.

Still, the goal of blockchain infrastructure should be to connect multi-industry ecosystems, and Quorum can do this by focusing on interoperability.

Considering its code is based on Ethereum, there are a lot of opportunities to create links with the public blockchain space, building hybrid networks where consumer-facing data can be stored on the public Ethereum network while more private data remains on permissioned Quorum nodes.

Some major Quorum use cases such as trade finance and commodity markets are great examples of areas where both permissioned and permissionless blockchains could work in parallel networks.

Other blockchain vendors could learn a valuable lesson from this - the design of a solution must be fundamentally aligned with the business use case it seeks to fulfill.

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