JP Morgan Adds Zcash to Quorum

Announcements, FinTech, Innovation, Investing | May 23, 2017 By:

Zerocoin Electric Coin Company (ZECC), which developed the digital currency Zcash, has partnered with banking giant JP Morgan to integrate Zcash technology into JP Morgan’s enterprise blockchain platform, Quorum. The partnership was announced at CoinDesk’s Consensus 2017.

“We’re delighted to be working with J.P. Morgan on this project,” said ZECC CEO Zooko Wilcox. “Quorum’s innovative, open source design demonstrates that J.P. Morgan is leading the way for applications of distributed ledger technology in global finance. Zcash is the leading technology for cryptographic protection of assets on a distributed ledger. Combining these will unlock transformative possibilities.”

Zcash uses zero-knowledge proofs to prove the integrity of digital currency transactions without revealing any information about the sender, recipient, or the assets that are being transferred.

Quorum, an enterprise blockchain platform JPMorgan built on ethereum, was designed so that a smart contract would be visible only to the parties, not the whole network. But that, by itself, precludes the contracts from involving assets that could later be transferred to other participants in the network.

Under the partnership, ZECC will extend Quorum’s existing privacy protections to add cryptographically assured private settlement of digitized assets on the Quorum distributed ledger without a central intermediary. Quorum is the first corporate application that will feature ZECC’s Zero-knowledge Security Layer (ZSL). ZSL is used by ZECC to assure anonymity for transactions using Zcash.

“By adding the Zero-knowledge Security Layer into Quorum, we are able to explore how state of the art cryptographic privacy technology will enhance the next generation of financial services applications,” said JPMorgan executive director and blockchain center of excellence lead architect Suresh Shetty.

“What we’re doing for Quorum is implementing ZSL within a smart contract,” said ZECC COO Jack Gavigan. “Issuers will be able to create z-contracts and issue z-tokens (representing tokenized securities, currency, etc.), which can be transacted with the same type of privacy and confidentiality that Zcash’s shielded transactions benefit from.”