Back in 2017, JPMorgan Chase launched its Quorum interbank settlement information network. Now 201 credit institutions from around the world are already connected to it, which allows us to speak about the success of the project.
After the launch of the Quorum interbank settlement network, less than two years have passed, however, one can already speak about interest in this undertaking. At its origins were JPMorgan Chase, the Royal Bank of Canada and ANZ from Australia. They were one of the first to use the blockchain for organizing a system of payments between banks.
Now when conducting payment transactions, global financial institutions use the SWIFT system. It originated in 1973 and is capable of processing up to 23 million operations per day.
Experts note that the familiar to all SWIFT has a number of technological problems. Even now, up to 60% of operations require human intervention. This leads to the fact that the implementation of the transfer sometimes takes up to several days. Only for connection to it you will have to pay $ 200,000, and up to $ 50 is required to pay as a commission for the transaction.
In addition, SWIFT has big security problems. In 2001, US special services were able to hack this network, and get information about all transfers. These problems are completely solved by the ethereum blockchain, on which the Quorum payment system is built.
In fact, Quorum is a fork of the main client Ethereum Geth. Thanks to this, it is possible to introduce all the new solutions of the Ethereum blockchain developers.
In the Ethereum virtual machine, transaction security is perfectly implemented. Credit institutions can make payments in the public blockchain mode, or switch to private channels. This ensures the protection of information. Data about operations can be stored both in open and in encrypted form.
In addition, Quorum does not require "manual" intervention. Absolutely all transactions are automatic, which eliminates even the theoretical probability of error.
Now 201 banks from all over the world are connected to the Quorum payment system from JPMorgan Chase. There are companies from America, Europe, Asia. It was joined by the Indian ICICI and the Islamic Bank of Sharjah. Moreover, experts are confident that this is only the beginning of the development of new technologies in the banking sector.
The connection of the largest Indian bank ICICI is symbolic for the reason that the authorities of the country impede the development of cryptocurrency companies in the country. Central Bank of the country has forbidden to serve such organizations.
Even JPMorgan Chase admits that now they are conducting only an experiment. However, it is already clear that it is close to success. The number of transactions processed in the Ethereum blockchain reaches 16 per second, or about 1.3 million per day. This is almost 20 times less than the possibilities of SWIFT. But technology does not stand still, in the coming years, developers are planning to solve the problem of scalability. And then Quorum will be able to repeatedly circumvent the performance of all existing mechanisms for interbank settlements.