JPMorgan has managed to develop a new layer on the Ethereum-based blockchain platform to add a further layer of anonymity to transactions, Coindesk reports.
More concretely, the bank’s blockchain team has developed an extension to the Zether protocol, which is designed to conceal transactions carried out on the Ethereum blockchain. It is said that JPMorgan plans to open-source the extension on Tuesday and most probably team it with its own Quorum, an enterprise-focused version of Ethereum developed by the bank.
“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 transactions recipients in a larger group of parties,” said Oli Harris, the head of Quorum and crypto-assets strategy at the bank.
The aim of the extension is to mask information related to the amount of money that is being sent as well as who the sender is.
“When we look at our own JPMorgan applications [the extended version of Zether] will be one choice of many that we will be looking at,” added Harris.
This news doesn’t come as a surprise at all as the bank continues to make significant progress in incorporating blockchain technology into its own banking system. A few weeks ago, the bank announced it partnered with the tech giant Microsoft to bring enterprise blockchain to the masses.
As a result of the partnership, JPMorgan and Microsoft customers will be able to use the Quorum blockchain through Microsoft’s Azure Blockchain Service and develop blockchain networks in the cloud. Thus, Quorum becomes the first blockchain platform available through Microsoft’s Azure.
Previously, Newconomy reported that around 220 banks will join JPMorgan’s blockchain-based Interbank Information Network (IIN), which allows banks to quickly address payments that contain errors, or transactions that are held up for compliance reasons.