- Quorum supports public as well as private transactions, along with smart contracts.
- Quorum has the first mover advantage as it is the first financial institute to adopt blockchain fully-fledgedly.
- Quorum can sustain dozens to hundreds of performances per second
With the rise of blockchain, finance is probably going to be the first sector to be heavily influenced by the wave of blockchain. Quorum, developed by J.P. Morgan, has been the frontrunner in the adoption of blockchain among financial institutions. Designed for financial use cases, Quorum relies on permissioned blockchain infrastructure.
Introduction To Quorum And Its Mechanism
Quorum has been in production since July 2015. Till now, there have been almost 50,000+ unit tests, audits and bounty programs that have been tested. It has the largest landscape for developers, tools and dApps (decentralized applications). It has a simple blockchain architecture.
Quorum deals with eradicating many issues that fiat currency-driven financial institutions have regarding blockchains. For example, any financial institution will be greatly concerned about the threat of exposure to smart contracts. Also, immutability and transparency, along with quick traceability, can be a bit of an issue for the financial economy.
Quorum’s framework is built upon Go Ethereum, which is the base code for the Ethereum blockchain. The functionality of Go Ethereum is very similar to Ethereum but with four major differences: enhanced contact privacy and increased transactions; a consensus mechanism based on voting; peer permission management; and performance.
Quorum’s Consensus Mechanism And Super Fast Transaction
Quorum facilitates fast processing with its high-performance processor. The developer team has ferociously claimed that the system can sustain more than hundreds of transactions per second, which is a major escalation from standard Ethereum and Bitcoin rates. One of the major reasons for the adoption of Bitcoin by financial institutions has been its speed. It can even take an hour at times to process and validate a transaction.
Such roadblocks have been overcome by Quorum with its high-performance implementation. The main reason behind the exuberantly fast speed of Quorum is its smart contracts. A voting procedure facilitated by smart contracts can mitigate the number of nodes and implement processes significantly faster than proof of stake or proof of work.
The consensus protocol of Quorum is known as QuorumChain and it is underlying within the genesis block. QuorumChain is a simple voting protocol. With the genesis block, a smart contract is utilized to authorize and assign voting rights, along with tracking the status of all voting nodes present in the network.
Conclusion
Quorum is modern and innovative and it meticulously operates on a structure based on its consensus mechanism. In the financial ecosystem, its application is going to be significantly important. There are going to be numerous banks that would want to enhance their financial structure by switching to the system that Quorum facilitates. Quorum can process hundreds of transactions per second, which is more than enough to support any financial institutional volume.