JPMorgan and Chase Co. has developed a privacy feature compatible with smart contract platform. The new feature will not only hide the sender and receiver’s details but would also keep the amount of the transaction transparent.
JP Morgan has developed a payment mechanism, Zether, that is compatible with Ethereum and other smart-contract platforms. Zether, is designed by Benedikt Bunz , Shashank Agrawal, Mahdi Zamani, and Dan Boneh from Stanford and Visa Research facility.
Zether [ZTH], An Anonymous Crypto-graphic Extention for Ethereum and Other Smart Contract Platforms
The basic idea of privacy is reduced targetted attacks and allowing for the development of contracts that require privacy. Targetted attacks can be planned on individuals or firms which reveals a higher account balance. Zether privacy feature can be used to provide sealed-bid auction, private payment channel, confidential stake-voting, and private proof-of-stake.
Oli Harris, head of JP Morgan Blockchain division and crypto-assets strategy, told the media,
“…In our implementation, we provide a proof protocol for the anonymous extension in which the sender may hide herself and the transactions recipients in a larger group of parties.”
They have implemented an account-based approach similar to Ethereum for efficiency and usability. Therefore, Zether has also introduced a ZTH token that will be funded with Ethereum and another smart contract tokens and executed with complete privacy. Zether could also be used to make proof-of-stake confidential.
Zether anonymity guarantee is more similar to Monero than any other privacy coin in the market. It also has its token the ZTH token, which is used to facilitate the exchange between these platforms. Essentially it provides a compatible-platform for developing private smart contracts.
A Zether confidential transaction costs about 0.014 ETH or approximately $1.51 (as of early Feb 2019). Moreover, it is a fully-decentralized mechanism designed to complement smart-contract platforms.
Reportedly, JP Morgan is also working on its blockchain based payment network, Quorum. The banking Giant has attracted some 220 banks to its Quorum-based Interbank Information Network. The JPM Coin launched by the bank is a stablecoin that is being, currently used for internal operations only but is expected to be launched for public use as well.
Do you think that JPM’s drive towards privacy will benefit the market for anonymous cryptocurrencies like Monero and Zcash? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com