JPMorgan Chase continues to develop Ethereum-based Blockchain Quorum with London-based startup Aztec. Privacy should be improved. A second generation of zero-knowledge proofs in the AZTEC protocol should make this possible.
The largest investment bank in the world, JPMorgan, and its CEO Jamie Dimon have been in the headlines of the crypto-space over the years. The statements of Jamie Dimon swing like a pendulum from one extreme to the other: Sometimes Bitcoin is fraud, sometimes he shows himself repentant in his judgment. Only in January, the bank announced that it wants to launch its own crypto-Coin. Now it has become known that the in-house Blockchain team is working on another solution to the privacy problem.
JPMorgan is very interested in Blockchain
JPMorgan has been working on an Ethereum-based blockchain called Quorum since early 2016 to streamline internal processes and significantly accelerate international payments. However, it is important to comply with data protection aspects, which in turn involves additional costs and slower transactions. The investment bank now wants to work on this set screw with the support of London-based start-up Aztec. The word of the hour in this context is Zero Knowledge Proof (ZKP), a kind of evidence without content. Sounds paradoxical, but can be realized mathematically. Take, for example, the zk-SNARKS protocol from Zcash.
Zero Knowledge Proof
The problem that a ZKP is trying to solve was raised by Taiwanese computer scientist Andrew Yao. It went down in history as a Yaos millionaire problem and reads as follows: “Two millionaires want to know who is richer. However, they do not want to inadvertently find out any other information about their mutual wealth. How can you have such a conversation? “Zero Knowledge Proofs (ZKP) make it possible to recognize a statement about a particular record as true without knowing the record itself. The mathematical foundation of these ZKPs is quite complex. However, JPMorgan’s software developers are “trying to make the zero-knowledge proofs acceptable”, a JPMorgan insider confirmed.
The liaison between the two companies could not be stranger: JPMorgan relies on closed systems when working with the blockchain. Even their planned JPM coin, which will run on the quorum blockchain, will probably only be available for selected institutions. The music at Aztec is quite different: its goal is to bridge the gap between private, ie closed blockchains and public, ie open blockchains. Tom Pocock, CEO at Aztec, wants “the best of the best from both worlds”. The fact that he has come a step closer to his goal makes him proud: “Our protocol is now being tested by the most important bank in the blockchain sector: JPMorgan.