<story><title>JP Morgan Unveils USD-Backed Cryptocurrency for B2B Payments</title><url>https://decryptmedia.com/5173/jp-morgan-coin-cryptocurrency</url></story><parent_chain><item><author>darawk</author><text>I think it may be that the decentralized control structure makes organizations who would normally be in competition with JPMorgan more willing to be on board with using something that they developed. For instance, if you are say, Goldman Sachs, would you want to use a private database at JPMorgan for you and your clients funds? Or would you prefer to use a semi-private blockchain, where although it&amp;#x27;s not open to the public, each participant in the network has equal stature to one another? I think that is the true innovation here, and I do think that it is important. It solves some of the corporate cooperation issues that prevent certain types of value from being created, because nobody wants to let their competitor control the space.</text></item><item><author>simias</author><text>&amp;gt;The coin will be issued on the Quorum blockchain which was developed by JP Morgan over the last year and is a private blockchain inspired by Ethereum. This means only selected miners will be able to process transactions, unlike public cryptocurrencies where anyone can.&lt;p&gt;[...]&lt;p&gt;&amp;gt;The purpose of the JPM Coin is to allow businesses to make near-instantaneous transactions of value across the internet without having to move fiat money in the background.&lt;p&gt;I genuinely don&amp;#x27;t understand what the blockchain does here that couldn&amp;#x27;t be implemented by any random database system. I mean the euros that I have in my bank account are also just a number that could be moved &amp;quot;across the internet&amp;quot; instantly if they so desired.&lt;p&gt;The big innovation with Bitcoin-like blockchains is that transactions can be done trustlessly but the whole &amp;quot;private blockchain with accredited miners&amp;quot; turns it into basically a slow inefficient database with extra steps.&lt;p&gt;Is it just a buzzword to generate interest or is there an aspect of this I&amp;#x27;m missing?</text></item></parent_chain><comment><author>koolba</author><text>This already exists. It’s called the DTCC and &lt;i&gt;everybody&lt;/i&gt; uses it.&lt;p&gt;&lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;en.m.wikipedia.org&amp;#x2F;wiki&amp;#x2F;Depository_Trust_%26_Clearing_Corporation&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;en.m.wikipedia.org&amp;#x2F;wiki&amp;#x2F;Depository_Trust_%26_Clearin...&lt;/a&gt;</text></comment>
<story><title>JP Morgan Unveils USD-Backed Cryptocurrency for B2B Payments</title><url>https://decryptmedia.com/5173/jp-morgan-coin-cryptocurrency</url></story><parent_chain><item><author>darawk</author><text>I think it may be that the decentralized control structure makes organizations who would normally be in competition with JPMorgan more willing to be on board with using something that they developed. For instance, if you are say, Goldman Sachs, would you want to use a private database at JPMorgan for you and your clients funds? Or would you prefer to use a semi-private blockchain, where although it&amp;#x27;s not open to the public, each participant in the network has equal stature to one another? I think that is the true innovation here, and I do think that it is important. It solves some of the corporate cooperation issues that prevent certain types of value from being created, because nobody wants to let their competitor control the space.</text></item><item><author>simias</author><text>&amp;gt;The coin will be issued on the Quorum blockchain which was developed by JP Morgan over the last year and is a private blockchain inspired by Ethereum. This means only selected miners will be able to process transactions, unlike public cryptocurrencies where anyone can.&lt;p&gt;[...]&lt;p&gt;&amp;gt;The purpose of the JPM Coin is to allow businesses to make near-instantaneous transactions of value across the internet without having to move fiat money in the background.&lt;p&gt;I genuinely don&amp;#x27;t understand what the blockchain does here that couldn&amp;#x27;t be implemented by any random database system. I mean the euros that I have in my bank account are also just a number that could be moved &amp;quot;across the internet&amp;quot; instantly if they so desired.&lt;p&gt;The big innovation with Bitcoin-like blockchains is that transactions can be done trustlessly but the whole &amp;quot;private blockchain with accredited miners&amp;quot; turns it into basically a slow inefficient database with extra steps.&lt;p&gt;Is it just a buzzword to generate interest or is there an aspect of this I&amp;#x27;m missing?</text></item></parent_chain><comment><author>root_axis</author><text>There is no innovation here because JPMorgan controls access to the network thus they centrally control the network. No problems are solved here that couldn&amp;#x27;t be solved without a blockchain.</text></comment>