- JP Morgan has unveiled a privacy extension for Zether
- The extension allows funds to be sent anonymously
- This is the latest in a number of blockchain-related projects for the bank
JP Morgan has become much more active in the blockchain and crypto space in the last few months after the official announcement of their own stablecoin earlier this year. In anticipation of the JPM coin, they have engaged in a number of other projects within that space and one of the most recent was the announcement on May 29 that their blockchain team has put together a privacy feature for the blockchain protocol Zether.
This new feature allows privacy for the blockchain in such a way that both the identity of the sender of the funds and the amount of the funds themselves are obscured.
A new age of privacy and transparency
This new product works as an extension to Zether protocol and is a fully decentralized protocol for confidential payments. It is compatible not only with Ethereum but other smart contracts and gives a significant layer of privacy to whoever makes use of it. The primary use of this feature will be on Quorum, which is their own private version of Ethereum used by the bank.
In many ways, this new product is designed to improve on the already existing system as well as addressing a constant issue that users find with it
“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 transaction’s recipients in a larger group of parties,” said Oli Harris, JPM’s head of Quorum and crypto-assets strategy.
It is well-known that a number of users of both blockchain and cryptocurrency are attracted to the anonymity that certain products allow, which is why privacy coins such as Monero are so popular.
JP Morgan starting to take crypto seriously
Besides JPM coin, JPMorgan has also brought on about 220 banks to its interbank information network that is based on Quorum and recently completed integration work with Microsoft’s Azure.
it is clear that their interest in blockchain and cryptocurrency is not a fleeting, one-off project but instead, a full-immersion by the bank to explore all the possibilities of blockchain beyond just cryptocurrency itself. For both institutional and individual clients who will be going into crypto for the first time using JP Morgan’s platform, they will be assured of at least some level of privacy.