Blockchain Myths: Lack of Maturity
Blockchain is a relatively new technology. However, it has been around for longer than we think. It has proven its merit in many different use cases. For more examples on how it is already part of the mainstream, read our article on Blockchain Myths: Mainstream Adoption and Industry Use. In this article, we will address the maturity of each blockchain we recommend.
Although it is now handled by ConsenSys, Quorum was initially developed by JP Morgan. The global leader in financial services announced Quorum in 2016. They developed and launched the platform in 2017. JP Morgan was initially part of the R3 consortium. They left in 2017 to focus on Quorum. In the same year, they announced interbank payments on the platform. The network-connected more than 300 banks and financial institutions by 2020. The banking giant even developed its own coin, JPM Coin, on top of Quorum. JPM Coin is redeemable at a 1:1 ratio for fiat currency held by JP Morgan. Its purpose is helping instantly transfer funds between the bank’s customers. This does not make it money in the traditional sense. It cannot be spent anywhere, only redeemed for US dollars at JP Morgan.
In August 2020, Ethereum venture ConsenSys acquired Quorum. JP Morgan still uses the platform as a customer of ConsenSys. ConsenSys helps make Quorum, a private blockchain, interoperable with the public Ethereum blockchain. Recently, ConsenSys partnered with a Chinese government-backed nationwide blockchain project called Blockchain-based Service Network (BSN). This is meant to make Quorum accessible in 80 Chinese cities. Businesses that already use BSN will now have access to Quorum as well. BSN has deployed more than 2,000 blockchain-based apps in China so far.
Hyperledger Fabric is the oldest blockchain provider on our list. Founded at the end of 2015, it was first introduced in February 2016. It was designed by IBM for industrial enterprise use. It is now hosted by the Linux foundation. It has hosted many major projects since its inception. Oracle based its Blockchain-as-a-Service product on Fabric. This offers a less technical approach to implementing blockchain in a business.
Visa developed its B2B Connect product on the same platform in 2019. It offers fast transactions between banks and their business customers. This brings greater security and speed to high amount transactions.
Another recent example is the Brazilian vaccination tracking system. Everyone who gets vaccinated is entered into the blockchain. This means that patients are efficiently tracked. It also offers insight into a patients’ medications for tracking potential side effects. In the annual Forbes Blockchain 50 list, 24 businesses use Hyperledger Fabric for their projects. These are all enterprises with a revenue of USD 1 billion or more. To learn more about these projects, check out our Blockchain Myths: Mainstream Adoption piece. All of these examples show that Hyperledger Fabric has come a long way. It is constantly evolving to meet new customers’ needs. High quality technologies are always shifting towards what customers might need.
The R3 consortium was founded in 2014 to explore distributed ledger technologies. Its founders included Goldman Sachs, Credit Suisse, JP Morgan, and six other banks. Initially, they promised they would raise USD 200 million from their members. In return, the members would get a 90% share in the new blockchain-oriented company they’d found. In 2016, they lowered the amount to USD 150 million and the share to 60%. This caused a few of their members to leave and focus on their own blockchains.
R3’s development of Corda did not slow down, however. Global banking payments network SWIFT integrated with the platform in 2019. That same year, they partnered with MasterCard as well. MasterCard is looking to let customers choose the method by which their funds are moved. Stock exchange Nasdaq has partnered with R3 in 2020. The goal was to help institutional investors build digital access on blockchain. Corda’s advantage was their experience with tight regulations. This would ensure high quality of service.
Like Quorum, Corda is also integrated into BSN China. Corda lets customers comply with Chinese blockchain regulations. Banks are also very likely to become blockchain users this way. BSN will also offer some decentralized apps (D'Apps) to help familiarize businesses with the concept.
Major blockchain platforms are very well-established. Within a few years, they have onboarded numerous major customers. This has helped them maintain a high standard. They have evolved to suit the needs of enterprise users very well. Chances are they already know how they can help your business. It is very likely they have already encountered similar requirements.
Are you interested in finding out more? Sign up for one of our upcoming Principles of Successful Deployments webinars. We also cover other pervasive blockchain myths.
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