By
Temitope Olatunji
April 24th, 2024
Ethereum-focused industry startup ConsenSys announced on Tuesday that it had acquired JPMorgan’s Quorum blockchain unit. Earlier JPMorgan was directly involved in funding the ConsenSys quest in the seamless adoption of blockchain technology.
JPMorgan Chase & Co (NYSE: JPM) and ConsenSys Inc., a blockchain software technology company, have further stamped on their existing business relationship after the latter announced on Tuesday that it has acquired the former’s enterprise blockchain platform, Quorum. ConsenSys founder Joe Lubin said in a statement:
“We are enormously excited to onboard Quorum into the ConsenSys Enterprise Ethereum stack, and look forward to unifying our Hyperledger Besu-based Enterprise Ethereum client with Quorum, and supporting all of the Quorum installations globally. We look forward to continuing our multifaceted partnership with J.P. Morgan for many years and ushering in an era of enterprise and mainnet compatibility”.
The American multinational investment bank JPMorgan was in the past directly involved in funding the ConsenSys quest in the seamless adoption of blockchain technology.
According to the partnership details, ConsenSys Quorum will enable enterprises to leverage on the existing Ethereum mainet for their high-value blockchain applications. Although the financial figures have not been disclosed to the public, the acquisition of Quorum by ConsenSys will help it further development as it will be exposed to a larger team of blockchain developers. With the blockchain technology still not fully adopted in our day to day activities especially in most industries, a safe, transparent and flexible system will enable a smooth transition into the new technology.
ConsenSys – Quorum is promising to be a leading entity in assisting enterprises develop decentralized applications for their business on top of the Ethereum network. Some of the notable features that Quorum provides enterprises include: use case flexibility, public and private networks, strong privacy, and also high performance among others.
The two entities have been working together for a long time, and now things are getting in shape. Lubin mentioned:
“Even before the very first block on Ethereum was mined and ConsenSys was formed, we’ve collaborated with J.P. Morgan on Ethereum proofs of concept and production systems”.
Bigger Picture of JPMorgan’s Quorum Acquisition by ConsenSys
The acquisition of the Quorum blockchain network by ConsenSys is a very strategic one for their future business operations. This is because, both ConsenSys and JPMorgan are two different businesses specializing in different niches. With their partnership, the Quorum network will rapidly grow and gain more customer base than if it stayed with the bank. ConsenSys engineering manager Daniel Heyman said in an interview:
“One of the parts of taking over this technology is that we’ll be supporting JPMorgan in [its] blockchain efforts. Then we’ll be able to leverage a lot of the work that JPMorgan has done that’s been internal for a long time, and support the ecosystem as other people want to use that technology.”
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