Why is quorum blockchain tokenizing gold bars

Copyright © Blockchain Council www.blockchain-council.org
Why is quorum Blockchain tokenizing gold bars?
J. P. Morgan’s private blockchain platform Quorum will be used to tokenize gold
bars to bring the gold bars straight from the gold mines into the hands of the
consumer. Buyers will be able to track their gold bars throughout the mining and
refining process to make sure that the gold bar is produced in an friendly way.
2

This will give sustainable miners the opportunity to earn a premium on the global
market while making sure that the end product is entirely unadulterated. This
article explores the Quorum blockchain and evaluates various uses cases for the
tokenization of gold bars.
3

What are the Advantages of Quorum?
Quorum is an enterprise-focused, private blockchain developed by J. P. Morgan
as an alternative to Ethereum that offers higher throughput and reliability. Due to
the nature of Quorum’s architecture, it is able to provide high-speed transactions
at the price of decentralization.
4

Quorum has a limited number of reliable participants that can add and verify
transactions, reducing the overheads for establishing truth on a network. By
comparison, platforms like Ethereum have to employ complex mathematical
calculations in the form of Proof of Work to develop a shared ledger.
5

As a result, while Ethereum and Quorum differ significantly in the amount of
decentralized security that they can provide, they can both still be used to provide
the same smart contract services such as tokenization of assets. Quorum benefits
from the J. P. Morgan name backing it, giving it an air of legitimacy when
compared to other blockchain platforms.
6

J.P. Morgan has established the Interbank Information Network (IIN) which
comprises over 75 banks who will use blockchains to enhance payment
information. The IIN runs on Quorum and minimizes friction in the global payments
process, enabling payments to reach beneficiaries faster and with fewer steps.
7

Earlier this year, in April, Quorum was used to facilitate a $150 million fund
transfer between the National Bank of Canada and U. S. Government. The test on
Quorum mirrored the Canadian bank’s $150 million offering on the same day of a
one-year floating-rate Yankee certificate of deposit.
8

Tokenizing physical or financial assets has numerous advantages such as the
ability to be transferred via distributed ledgers and the complete ownership of the
rights to the underlying asset. Tokenization can help bring blockchain technology
to the forefront of the global digital economy where everything from cars to houses
is tokenized.
9

Quorum makes for a good choice as a tokenization platform because it is
unencumbered by the limits of a public blockchain platform such as Ethereum.
Reliable banks and corporations manage Quorum’s nodes and run on enterprise
grade hardware, making for a much smoother experience for the average user. In
a sense, the switch to the Quorum blockchain for the management of virtual
tokenized assets would signal a shift from traditional banking services to a more
“blockchain-like” management system.
10

Tokenizing Gold
The tokenization of Gold using the Quorum blockchain will consist of wrapping a
gold bar into a tamper-proof electric case which can then be tracked from the mine
to the endpoint. The main reason for doing so is that the gold trade is rife with
human rights violations and buyers in the global market are willing to pay a
premium for gold obtained from socially responsible mines.
11

Tokenizing gold also has the additional benefit of being easily transferable against
other digital assets. Physically selling or buying gold is a prolonged and tedious
process which involves taking the piece of gold to a goldsmith who melts and
sends it for analysis before offering a price. Blockchain-based tokens can be
easily exchanged for one another via P2P meeting or through decentralized
exchanges such as Open Bazar and the 0x protocol for atomic swaps.
12

Blockchain Council Certifications
You can check out our certifications, and kick start your career in the Blockchain
space today.
● Certified Blockchain Expert
● Certified Blockchain Expertv2
● Certified Blockchain Developer
● Certified Smart Contract Developer
● Certified Solidity Developer
● Certified Ethereum Developer
13

THANK YOU!
Any questions?
You can mail us at
hello@blockchain-council.org
Copyright © Blockchain Council www.blockchain-council.org 14

Why is quorum blockchain tokenizing gold bars

More Related Content

What's hot (20)

Similar to Why is quorum blockchain tokenizing gold bars (20)

More from Blockchain Council (20)

Recently uploaded (20)

Why is quorum blockchain tokenizing gold bars