ConsenSys Acquires JP Morgan’s Quorum Blockchain

Internal ConsenSys in 2016 (CoinDesk archives)

ConsenSys Acquires JP Morgan’s Quorum Blockchain

Quorum, the mission blockchain platform developed by mega-monetary institution JPMorgan Inch, being got by ConsenSys, the Brooklyn, N.Y.-primarily based Ethereum mission studio.


Furthermore, JPMorgan has made an undisclosed strategic investment in ConsenSys, the companies acknowledged in a observation. Neither ConsenSys nor JPMorgan would verify the scale of the investment made by the monetary institution.

ConsenSys did verify it used to be within the technique of raising funds and has a unfold of additional investors becoming a member of JPMorgan. 

In phrases of how the acquisition will most likely be constructed-in into the Ethereum conglomerate, to any extent further, JPMorgan will most likely be a buyer of ConsenSys, which is offering tool make stronger and services and products to initiatives deployed on Quorum. 

All mission work being performed at ConsenSys will now tumble beneath the new “ConsenSys Quorum” price, and ConsenSys plans to merge its present protocol engineering roadmap with Quorum, leveraging the biggest of every codebases.

“One of many aspects of taking on this know-how is that we’ll be supporting JPMorgan in [its] blockchain efforts,” ConsenSys engineering supervisor Daniel Heyman acknowledged in an interview. “Then we’ll be in a position to leverage many of the work that JPMorgan has performed that’s been inner for a in point of fact prolonged time, and make stronger the ecosystem as other of us desire to employ that know-how.”

Sufferer of success

As more initiatives began constructing on Quorum, a privateness-centric fork of Ethereum, it changed into evident to many within the blockchain world that a monetary institution isn’t the upright articulate to protect a gigantic scale delivery-source tool project. It used to be first rumored that Quorum might per chance be heading to Brooklyn in February of this yr. 

JPMorgan and CEO Jamie Dimon received quite a lot of press for the “JPM Coin” project, which is tokenized money on the Quorum ledger. Different high-profile initiatives all through the monetary institution encompass the Interbank Info Community, which has over 200 other banks as participants, and Dromaius, a debt issuance platform on Quorum.  

“As of nowadays, JPM Coin will most likely be constructed on top of ConsenSys Quorum,” acknowledged Heyman. “So whereas JPM Coin is 100% JPMorgan’s, we’re very angry that we’ll be supporting it as a tool vendor and serving to damage them a hit, along with other initiatives like the Interbank Info Community.”

Different initiatives on Quorum – similar to tokenized loans being performed by IHS Markit or AURA, the song-and-hint system being constructed by LVMH – is now not going to receive any funding from ConsenSys, Heyman acknowledged, however they’ll be in line for other benefits. 

“Any individual constructing on Quorum will collect a correct tool vendor behind their know-how,” acknowledged Heyman. “They’ll collect a roadmap that’s very particular publicly maintained that they might be able to build in opposition to and slither in opposition to, and a assortment of facets and functionality they might be able to now pick to speed up their time to market.”

The new branding for ConsenSys Quorum
Supply: ConsenSys

Interoperability play 

One other critical factor for ConsenSys is locking down interoperability between Quorum and Hyperlegder Besu. The latter is an mission Ethereum client constructed by ConsenSys engineers from the ground up to be well counseled with the Ethereum public mainnet. The critical aspects to be aligned to damage Besu and Quorum watch advice from every other encompass the consensus mechanisms, API interfaces and privateness instruments, acknowledged Heyman.

“Besu will proceed precisely as it’s, which is section of the Hyperlegder community and now not ours to manipulate. Obviously we’re carefully invested in transferring it forward,” Heyman acknowledged. “When we promote an mission Ethereum stack, we’re going to be calling it ConsenSys Quorum, and this might occasionally hold two alternatives: the Spin Quorum–primarily based version, or the Hyperledger Besu–primarily based version.”

The JPMorgan news used to be welcomed by Brian Behlendorf, govt director of Hyperledger, who acknowledged it used to be provocative and obvious for the mission blockchain community.

“It answers concerns about commercial make stronger for enterprises [that] hold deployed Quorum and, more importantly, it helps efforts to bring elevated interoperability and code re-employ between Quorum and Hyperledger Besu,” Behlendorf acknowledged in an electronic mail to CoinDesk.

Behlendorf, a revered resolve within the delivery-source tool world, acknowledged the acquisition must always aloof shatter it easy for enterprises that resolve Java, or resolve the Apache 2.0 license, and even resolve to work with other Besu-primarily based vendors, to affix the quite quite a lot of Quorum-primarily based networks which hold emerged. 

“This is textbook delivery-source ‘co-opetition’ at its most attention-grabbing, where opponents can trace they’re basically stronger working collectively than making an attempt to divide a market,” acknowledged Behlendorf. “We protect up for serving to ConsenSys and JPMorgan (who are every Hyperledger Premier Members) and other ecosystem participants pressure adoption.”

In phrases of whether Quorum engineers previously employed at the mega-monetary institution would be making the slither back and forth to Brooklyn and becoming a member of ConsenSys, Heyman acknowledged: 

“Yeah, absolutely. We’ll be working carefully with the JPM engineers on this and we’re going to be constructing out our bear workers devoted in opposition to Quorum on the protocol neighborhood.”


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