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There is more to Blockchain Innovation : JP Morgan

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JP Morgan on Blockchain Innovation

JP Morgan Chase & Co.’s (JPM) distributed ledger venture, Quorum, recently made news when its head, Amber Baldet, moved on to start her own venture. But her shoes are filled in by Christine Moy.

Christine Moy started her career in the middle office of JP Morgan’s syndicated loans business. In this job, Moy had to deal with all the documents that needed to be signed before these transactions could close. She then spent over a decade working across a range of assets and divisions at the bank. This cross-training included witnessing how securities and chains of custody were frozen solid as the 2008 crash engulfed the entire financial system. That experience underscored for her the importance of a transparent system of reconciliation just as the syndicated loans role drove home the need for faster settlements. With all this insight she was the first choice and new program lead for the Blockchain Centre of Excellence (BCOE) at JP Morgan.

Moy has stressed the importance of interoperability between various blockchain networks. Blockchain’s cost efficiency will suffer unless the multiple silos that comprise a bank’s financial system remain intact. These silos can take the form of different technologies or protocols for a system that result in lack of communication between the two. So she wants all the public and private blockchains to be interlinked. But many people are opposed to this as they want separate block chains.

She was policy neutral and has said that irrespective of the blockchain that JP Morgan is using they are happy that they are working closely to Ethereum . Quorum, is a private blockchain, the ethereum-based, open-source project that had been the cornerstone of the JP Morgan’s blockchain work built with open-source code, the kind that was in trend a few years ago when enterprises were keen to experiment with the technology but wanted nothing to do with any cryptocurrency. JP Morgan was considering a spin-out of Quorum.

Everybody in the industry thought it was the end of Quorum as JP morgan is spinning of the project but the spin of was just to increase JP morgan’s investment in the project and as such products required constant support of the company like RedHat supports Linux users. This was JP Morgans way of spreading the wings into Software support by hiring more Business Analysts and Engineers in their company.

The Quorum, which may be spun out into a separate company of its own, recently Moy invested it it by automating the delivery of a $150 million Yankee certificate of deposit using ERC-20 tokens on its platform. This means that investors received the certificates only after they deposited the required cash. The successful execution of contracts may just be the beginning. The Quorum expects to fulfil these contracts by using Smart contracts to make them fast transactions.

Currently a whole host of entities picked up Quorum and started using it, IHS Markit, Broadridge, Synechron, ING, and BlockApps to name a few. JP Morgan has other blockchain projects too such as its collaborations with Digital Asset Holdings, Axoni and Nivaura.

Moy also sees the Yankee CD trial as a harbinger of a more open and transformed financial system.

“This is an example of us issuing a traditional financial instrument natively on the blockchain,” Moy said. “But the next phase is when you have real asset managers participating in a product like this; it’s about, what does custody look like? What does fund administration look like – and what does a trades market look like for something like this?”

 

Conclusion:

JP Morgan banks for adopting a “wait and see” approach to growing innovation from Quorum and other blockchain products with the trust that it will be the next big thing in market.

#Bitcoin

How Accepting Bitcoin Can Help Your Business

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Education will be essential to increasing Bitcoin’s acceptance and usage by merchants, institutions, and individuals. Start accepting Bitcoin for business.

Recently, cryptocurrencies and bitcoin have become the main topics in the financial industry. A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining characteristic of a cryptocurrency and arguably its most endearing allure is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. Cryptocurrencies have their benefits and drawbacks. The paper elaborates different aspects of cryptocurrencies, starting with their early development, challenges and risks, opportunities, advantages and disadvantages, and their future. Also, the paper covered issues related to the practical and technical function of cryptocurrencies. It was concluded that it is not easy to predict the future of cryptocurrencies since there is a lot to be done especially in the field of formal regulations. However, the banks and other financial institutions should see and consider cryptocurrencies as an alternative for the financial transactions in the future.

 

Faster, Cheaper Payment Solution

Bitcoin transactions can occur at any time, are fast and have lower fees. The average Bitcoin transaction is executed in 10 minutes with fees for simple P2P transfers to remittances coming in at under 1%. This is due in large part to the fact that traditional third-party financial institutions like banks are removed from the transaction process. Merchants and individuals using bitcoins are not restrained by set banking hours, withdrawal limits or long transaction execution periods before funds become available.

 

Safeguards Against Currency Manipulation

Bitcoin is not owned or controlled by a country or governing body. Additionally, unlike many other forms of currency, the number of bitcoins that will be issued is finite, exactly 21 million. The benefit of this lack of ownership and the limited amount is that the bitcoin supply cannot be artificially manipulated. When it comes to fiat currency, governments can easily print additional paper or mint coins, devaluing existing money in circulation and causing inflation. The decentralized nature of bitcoin decreases monetary concerns and mostly leaves fluctuations in value up to natural supply and demand economics.

 

Greater Consumer Protections

The use of bitcoin as an alternative to fiat currency protects the downside that can occur with traditional bank accounts. This includes the threat of bank failure or skimming. In the event of a bank failure, a customer can face frozen bank accounts while liquidation plans or bailouts are hashed out. In some countries, traditional bank customers may even find that banks will skim money off of customer’s accounts to remain solvent. This occurred during the banking crisis faced by Cyprus in 2013. With bitcoin, individuals remain in full control of when and how their assets are retrieved, transferred and spent. Essentially, digital currency users become their bank.

 

Greater Transparency

Because all bitcoin transactions are permanently recorded on the blockchain, all sales are public and traceable. The balance associated with each address is also part of the public record. The blockchain makes bitcoin much more transparent than many other monetary systems.

 

Private and Secure

Although all bitcoin transaction details are stored publicly on the blockchain, the identities of the users involved remain relatively anonymous. Because payments can be made without including personal identification information, Bitcoin provides inherent security against identity theft. Additionally, there is no risk of being charged twice or of fraudulent charges being assessed to your wallet thanks to the blockchain, which monitors unique coin addresses and eliminates the possibility of paying multiple people with the same bitcoin. Bitcoin doesn’t offer the complete anonymity of cash but is undoubtedly a far more private experience than making online payments or transactions using debit or credit cards.

 

Final Thoughts

Bitcoin is currently the most valuable and widely adopted digital currency. A growing number of businesses, charities, and other organizations are accepting bitcoin payments ranging from e-retailers to law firms to sports franchises. Further, recent inflationary and banking crises across the globe have highlighted some of the critical threats inherent to fiat currency. This creates additional opportunities for decentralized digital currencies. Education will be essential to increasing Bitcoin’s acceptance and usage by merchants, institutions, and individuals. The system will also need to address common criticisms around illicit use of bitcoin and work diligently to build regulatory and legal frameworks around the world.

 

A guest post by KillerLaunch.com

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#Blockchain

Crypto Liquidity Problem: Is There Really A Solution?

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One of the most significant problems facing new exchanges and smaller decentralized exchanges is liquidity. Liquidity refers to the volume of assets.

One of the most significant problems facing new exchanges and smaller decentralized exchanges is liquidity. Roughly defined, liquidity refers to the volume of assets within a market, and affects how much trading of an asset can be executed. Small exchanges and startups often suffer liquidity issues simply because inadequate levels of an asset are available to them.


According to Encrybit, 36% of people are concerned about the liquidity an exchange has before signing up to trade on it. To compound the problem, small order books and large bid/ask spreads can slow trading down or bring it to a grinding halt, in some cases, further driving away customers who bring more liquidity.

 

It’s not all bad news, however. The last year has witnessed some significant developments for exchanges, including the recent Blockchain Exchange Alliance partnership with ONEROOT and the announcement of Blockstream’s Liquid sidechain for the Bitcoin blockchain.

 

One idea for solving the liquidity issue faced by small exchanges would be to decouple from BTC and ETH pairings and instead offer a greater range of fiat and stablecoin pairings, which would allow people to purchase specific tokens without the need to buy BTC or ETH first. Complexity is a known factor that inhibits crypto adoption. Simplifying the process would bring more liquidity to the market.


Another idea, proposed by the BXA/ONEROOT partnership, is to create a network of exchanges with shared liquidity. To put this into context, BXA is the majority shareholder of Bithumb, South Korea’s largest decentralized exchange. With a shared liquidity pool of that size, small exchanges that join the alliance would benefit from Bithumb’s and each other’s liquidity and order books. ONEROOT has spent the past year developing the technology and tools for the BXA to provide this service.


A big turn off for liquidity providers (i.e., market makers) are the unappealing fees that some exchanges charge. Market makers have been around since trading began and are highly necessary for developing or enhancing liquidity on an exchange. Some exchanges are well aware of their necessity and have created more appealing offers. For instance, ETERBASE has a zero fee market maker program to ensure liquidity when they launch.


The acquisition is also a potential solution. There are over a hundred exchanges, and crypto assets are divided up between them. Therefore, liquidity is divided too. If exchange owners have such big egos that they don’t want to partner up, as in the solution proposed above, then maybe it’s time for good old acquisition to come into play. Instead of competing for liquidity, perhaps some of the better off crypto exchanges could buy it.

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#Blockchain

Bitcoin Coffee: The first blockchain coffee is a fact!

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Blockchain technology makes the massive inequality in the coffee chain transparent for consumers. Token embraces this transparency and offers a solution.

Blockchain can be used for beautiful things. You can arrange and settle a lot through blockchain. Property rights, identity, but also, for example, the origin of products. How about coffee on the blockchain? Today you can buy the world’s first blockchain coffee: Token. This newly established coffee brand is an initiative of Moyee Coffee and FairChain Foundation that want to offer you full transparency about where your coffee comes from. Thanks to the blockchain, more money can go to the poor farmers. And that must make the world a little more honest. The token is the first coffee brand that is entirely transparent with blockchain technology.

 

No more hard time for coffee farmers

Nowadays, many coffee farmers have a hard time. They can barely cover their production costs, let alone social and environmental costs. According to the recently launched coffee brand Token, blockchain could provide the transparency and efficiency needed to change that.
Blockchain technology makes the massive inequality in the coffee chain transparent for consumers. Token embraces this transparency and offers a solution. The first cargo of 60,000 kilos, produced by small coffee farmers and blockchain-traceable, is going to prove that an honestly distributed value chain is possible.

 

Transparency

Token attempts to become the world’s first complete end-to-end blockchain coffee.

The token is a collaboration between Bext360, Moyee Coffee and the FairChain foundation. Their blockchain system makes it clear precisely what everyone deserves in every step of the chain. Inefficiencies and unnecessary intermediaries can thus be identified. According to the organizations, this transparency makes a fairer distribution of value throughout the chain possible. Blockchain technology makes the massive inequality in the coffee chain transparent to consumers. Token embraces this transparency and offers a solution.

 

Does blockchain make coffee more honest?

Most coffee is produced by a handful of large coffee companies that do not distribute the profits equitably. For example, the vast majority of the 25 million coffee farmers in the world can barely cover their production costs. Fortunately, there are more and more coffee brands who believe that blockchain can be used to make coffee more honest. This technology provides the transparency and efficiency needed to change this unfair system.

 

The coffee chain

Cryptocurrencies provide various modern opportunities; you can use on your daily basis. Presently, you can easily gamble with cryptocurrencies or invest your money in betting with crypto. For example, you can use a betting site Fairlay to bet on anything you want. You can also choose to build up more gradual assets by investing in the blockchain technology that lies behind all cryptocurrencies. The success of digital coins is possible thanks to the revolutionary blockchain technology. You can see that there are great opportunities for companies that develop blockchain services and for other companies that benefit from the digitization of the financial sector.

To make the benefits of blockchain real, each bag of Token coffee is provided with a token. Every token is worth 50 cents that you can invest in part of the coffee chain via the KrypC Technologies platform. You can give it to the farmers who produce the coffee, but also to yourself by offering yourself a discount on your coffee.

 

Gradual growth instead of a supercharger

It is, of course, nice if you have made a significant profit with cryptocurrencies. Earning a lot of money gambling with crypto is possible. However, the chance that you have burned your fingers on the bitcoin is also quite significant. If you are tired of waking up every day with the uncertainty of having become 10% richer or poorer with a digital currency that night, you may want to consider putting your money in mutual funds. You then become for a tiny part owner of a large number of companies that make all kinds of articles and provide services. To be honest: you will not get rich with an investment in the fintech sector. Although the underlying trend is healthy, you run the risk with your assets, and it is essential to build a financial buffer and invest only with money that you can miss for a long time.

 

How blockchain makes the world fairer?

The blockchain ensures that the world becomes fairer. It offers safety and transparency. This technique can be used for all kinds of applications.

How does blockchain work?

The blockchain can be seen as a ledger containing the accounting of each transaction that has ever been done. Every time a new transaction is registered, it comes to a chain of existing data blocks of transactions. That is why we call this chain the blockchain. Information about companies can be recorded on the blockchain. This increases the chance of fair trade. Scandals can be prevented because the right information is available.

Just think of the fraud with software in cars. That would not have been possible if all the information had been recorded on the blockchain. Multiple parties check the information. It would immediately have been discovered that something is not right. The registration on the blockchain would, therefore, be rejected. With such a discovery you are almost assured that it is made public.

The blockchain can also work with clothing manufacturers. There could be registered where sweatshops are located. If a piece of clothing comes precisely from that area, it could be observed on the blockchain that it was not produced with respect for the man.

Another example: elections are not fair all over the world. By registering votes on the blockchain, no more results can be tampered with. The blockchain tracks the information and verifies that the information is correct. Voice fraud is then impossible

 

Fair gambling

These days, we see that blockchain technology is being used more and more often in online casinos. Not only to be able to support payment instruments such as Bitcoin and altcoins but also in games themselves. For example, players can check whether a round in a game has been fair.

 

We thank Davey Cross for this guest post.

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