JPMorgan’s blockchain team has developed an extension that will serve ethereum-based blockchains. The new extension will have privacy features that will not only hide how much money is being sent but also who is sending it. This is according to a statement that was exclusively shared with one crypto website earlier today.
The extension will benefit ethereum-based blockchains
The new privacy features extend the Zether protocol, which is a fully decentralized, cryptographic protocol that aids confidential payments which are compatible with ethereum-based blockchains.
Zether protocol is designed to add a further layer of anonymity to transactions. Now, JPMorgan plans to open source the extension on Tuesday, and they are likely to use Quorum which is their version of the ethereum blockchain.
Zether was built by a group of financial technology researchers and academics. Its uses zero-knowledge proofs (ZKPs), which allows one party to prove knowledge of some secret value or information without conveying any detail about that secret.
Explaining how the new extension works, Oli Harris, who is the head of JPMorgan’s Quorum and digital assets strategy noted:
“In the basic Zether, the account balances and the transfer accounts are concealed, but the participants’ identities are not. So, we have solved that. In our implementation, we provide a proof protocol for the anonymous extension in which the sender may hide herself and the transactions recipients in a larger group of parties.”
So far, we know that JPMorgan is working on developing its own virtual coin that they claim will have a stable price. The bank has also managed to attract some other 220 banks to its Quorum-based interbank information network.
Also, the firm recently completed an integration with Microsoft Azure as it prepares its blockchain, Ouorum to be spun out and to exist as an open source protocol.
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