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VanGogh

Does anybody know if JP Morgan's cross border product is decentralized?

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https://finance.yahoo.com/news/75-banks-joined-jpmorgan-apos-092040990.html

"IIN is a shared ledger for cross-border payments that allows banks to quickly and easily add or correct information necessary for payments sent between banks. It competes with legacy platforms such as SWIFT and new startups like Ripple."

Later edit:

The name of IIN seems to tell the tale: "The FT reported on Tuesday that lenders including Santander and Societe Generale are testing the Interbank Information Network (IIN)."

Edited by VanGogh

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No clue to be honest. What I find interesting is that Santander is among the testers of this new blockchain solution for cross border payments by JP. 

Besides that, the Interbank Information Network shouldn't come as a surprise to anyone. It was a matter of when, not if, the big players started to come up with their own solution for cross border payments. 

The competition is heating up, lets see how Ripple reacts to it. 

Edited by PactaSuntServanda

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JPMorgan will operate it, but this is an open network and Quorum itself is open source. The more banks join, the sooner resolving information on this blockchain project will become second nature. 

https://www.euromoney.com/article/b1bfkrj10f1vts/banks-rush-to-join-jpmorgans-blockchain-based-interbank-information-network

Edited by PactaSuntServanda

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Quote from the article linked in the previous post:

Quote

When one of the largest banks in the world [JP Morgan] announces that 75 other banks have signed up to join a new payments information network it has developed, which, powered by Quorum, is a permissioned variant of the Ethereum blockchain, that grabs a lot of attention.

Full article: https://www.euromoney.com/article/b1bfkrj10f1vts/banks-rush-to-join-jpmorgans-blockchain-based-interbank-information-network?copyrightInfo=true
Visit http://www.euromoney.com/reprints for additional distribution rights. For more articles like this, follow us @euromoney on Twitter.

A permissioned variant of the Ethereum blockchain?!  Did they make an error in this article in reporting this?

How's that supposed to work?!  If they don't have their own devs working on it to change the consensus mechanism and it's a fork of Ethereum network, then it's proof of work.  That doesn't make much sense.

Edited by enrique11

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I found more info about it from JP's website:  https://www.jpmorgan.com/global/Quorum#openModal2

Quote

Quorum supports institutional transaction volumes

Quorum networks process dozens to hundreds of transactions per second, depending on how the network and smart contracts are configured. Further optimization is ongoing.

Rather than proof-of-work (mining), Quorum uses the vote-based QuorumChain, RAFT, or Istanbul BFT (Contributed by AMIS) consensus algorithms.

So, it sounds like it is not based on Ethereum - it just works similarly to it I suppose with respect to running smart contracts, like a smart-contract platform like Ethereum I suppose.  Oops.  Me speaketh too soon:

Here's the github repo: https://github.com/jpmorganchase/quorum

Quote

A permissioned implementation of Ethereum supporting data privacy

They have 319 contributors vs 63 for rippled.   Why are there so many contributors to that project? :/

 

Edited by enrique11
additional comment

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This is the latest youtube video I could find on it. It was made about 2 months ago.  It's quite informative, but short video.

So, in this video which was made two months ago, the Quorum github shows only 126 contributors, and two months later that number is now 319!

Here's an older medium article: https://medium.com/@kctheservant/exploring-how-private-transaction-works-in-quorum-53612a9e7206

Sounds like a plus of this project is to build quorum as an enterprise solution on top of Ethereum, similar in my opinion to what IBM has done for Stellar.

Edited by enrique11
additional comment

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16 minutes ago, enrique11 said:

 

This is the latest youtube video I could find on it. It was made about 2 months ago.  It's quite informative, but short video.

So, in this video which was made two months ago, the Quorum github shows only 126 contributors, and two months later that number is now 319!

I'm not a technical person. Could you offer a brief layperson's summary? Thanks in advance.

Edited by VanGogh

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7 minutes ago, VanGogh said:

I'm not a technical person. Could you offer a brief layperson's summary? Thanks in advance.

Yes, it's decentralized because it's using a consensus algorithm - a voting algorithm means there's more than one party (nodes or servers actually) involved in coming to an agreement as to which transactions should be written to the database/ledger, so it's not centralized as it would be in a single party or centralized solution in which no voting occurs.  At least that's how I see it - I'm not a coder though, but that's what consensus algorithms are all about - decentralized agreement by voting.

Edited by enrique11

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23 minutes ago, enrique11 said:

Yes, it's decentralized because it's using a consensus algorithm - a voting algorithm means there's more than one party (nodes or servers actually) involved in coming to an agreement as to which transactions should be written to the database/ledger, so it's not centralized as it would be in a single party or centralized solution in which no voting occurs.  At least that's how I see it - I'm not a coder though, but that's what consensus algorithms are all about - decentralized agreement by voting.

I kind of remember this conversation from a few months ago. Here's more info on it from then: 

 

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JP Morgan left the R3 consortium back in april 2017. I believe Quorum is more of a competitor to Corda and Hyperledger fabric. They simply want a piece of the pie that other banks will pay to use these enterprise networks.

Edited by mandelbaum

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10 minutes ago, mandelbaum said:

JP Morgan left the R3 consortium back in april 2017. I believe Quorum is more of a competitor to Corda and Hyperledger fabric. They simply want a piece of the pie that other banks will pay to use these enterprise networks.

Yes, agreed. It's likely an enterprise-only (B2B) solution being built on top of Ethereum, because the ledger is private, just like in Corda or Hyperledger.

Edited by enrique11

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Remember that the point of the decentralized digital asset XRP is to bridge networks. Any new network may be a threat to existing networks, but is not a threat to the usecase of bridge assets, it only enforces it. Decentralized digital assets are needed to tie all networks together (including the unbanked), the only question that remains is which digital asset is best capable of handling the biggest load for the lowest cost.

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