Microsoft, Intel, JPMorgan and others are forming a new blockchain alliance

Blockchain | March 2, 2017 By:

A group of major banks and tech companies, including Microsoft, Intel and JP Morgan, have partnered to develop a financial technology based on the digital currency network Ethereum.

The Enterprise Ethereum Alliance (EEA) will work to enhance the privacy, security and scalability of the Ethereum blockchain, making it better suited to business applications, according to the founding companies.

Members of the 30-strong group also include Accenture Plc (ACN.N), Banco Santander (SAN.MC), BP Plc (BP.L), Credit Suisse Group AG (CSGN.S), UBS Group AG (UBSG.S), Banco Bilbao Vizcaya Argentaria (BBVA.MC), ING Groep NV (INGA.AS), Bank of New York Mellon Corp (BK.N) , Thomson Reuters Corp (TRI.TO) and startups ConsenSys and BlockApps.

Some members of the alliance have already used the technology to develop blockchain-based applications. A few months ago, JP Morgan created a system for confidential transactions called Quorum.

Ethereum uses blockchain to record and verify transactions without the participation of third parties. The technology enables the automation of different type of things, including financial contracts and identity management. If compared to bitcoin, Ethereum is more flexible due to its capacity for smart contracts.

With the new initiative, the group joins a list of other organizations formed by major companies to investigate blockchain use cases. The New York-based startup R3 CEV already includes about 70 companies working together on creating blockchain applications for the financial industry.