Quorum is an open-source blockchain platform tailored to the distinct requirements of enterprises and businesses. Originating from JP Morgan Chase in 2016, it is built upon the Ethereum Blockchain infrastructure. The chain employs a modified version of the Ethereum Virtual Machine (EVM) and the Solidity language. Quorum blockchain provides a specialized solution for enterprise-level blockchain applications.
Key Takeaways
Quorum blockchain is a distributed ledger technology (DLT) based on Ethereum. Its primary goal is to offer a permissioned implementation of Ethereum. Thus, emphasizing support for transactions and contract privacy.
What is the Quorum Blockchain?
Quorum stands out as an Ethereum blockchain designed with an enterprise focus. It aims to enhance blockchain technology. Despite the first-generation blockchain offering scalability, peer-to-peer networks, interoperability, transparency, and various features, it remains imperfect. Global researchers are dedicated to refining blockchain technology, and Quorum emerged as an initiative by J.P. Morgan to advance this technology within the financial industry. Subsequently, J.P. Morgan handed over the development and support of Quorum Blockchain to ConsenSys.
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How Quorum Is Different From Ethereum:
1. Enhanced Management and Contract Privacy
Quorum blockchain stands out for its permission nature. It offers superior privacy features compared to other blockchains. Introducing the concept of private and public transactions, Quorum ensures transparency for public transactions, similar to Ethereum. It also maintains confidentiality for private transactions, safeguarding sensitive data from public exposure. An additional security layer called “constellation” further fortifies the blockchain by tightly controlling message encryption. Thus incorporating stringent authentication, even for previous transactions.
2. Network and Peer Permissions Management
Quorum’s permission structure restricts access to authorized individuals. Thus, ensuring exclusivity within the network. Participation is limited to pre-approved individuals, creating a secure environment for exchanges sanctioned by designated authorities.
3. Better Performance
Quorum surpasses other blockchain technologies in network speed, capable of executing over 100 transactions per second. This remarkable speed positions Quorum as the preferred choice for banking and financial services, attributed to its straightforward consensus mechanism.
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4. Voting-Based Consensus Mechanism
The Quorum network employs a voting-based consensus mechanism, known as QuorumChain. With QuorumChain voting rights are allocated to all members through smart contracts. QuorumChain meticulously tracks the status of each voting node. Thus, ensuring a robust and democratic governance structure.
Quorum’s Distinctive Features
1. Advanced and Enhanced Permission Management: As a permissioned blockchain, Quorum exclusively allows approved users within its network. Access is granted solely to individuals authorized by a designated authority.
2. Improved Privacy Measures: Quorum prioritizes data confidentiality, a crucial aspect for financial institutions. On-chain public and private transactions ensure that sensitive information remains shielded from the public eye.
3. Voting-Based Consensus Mechanism: Built on QuorumChain, a voting consensus mechanism, this feature empowers users with voting rights delegated through smart contracts. Transactions get approval when most participants vote in favor. Thus, ensuring a democratic decision-making process.
4. Accelerated Performance: A key highlight of Quorum is its remarkable speed and high performance, capable of handling over 100 transactions per second. This surpasses the processing speeds of Bitcoin and Ethereum, positioning Quorum as the preferred choice for banking systems. The simplicity of its consensus mechanism contributes to its exceptional speed.
Industry Applications
Tokenization, safeguarding copyright, managing supply chains, facilitating energy and commodity trading, and ensuring provenance.
Conclusion
When evaluating all the attributes of a Quorum, it emerges as an outstanding tool for banking companies. Despite its restrictive mechanism, Quorum effectively addresses trust concerns prevalent in the adoption of blockchain by banking and financial institutions.
by Liminal
