JPMorgan blockchain optimism is intact. The American multinational investment banking giant believes that the technology will continue to see increased adoption despite the prevailing downturn in the crypto market.
A senior leader in JPMorgan recently expressed his confidence that the technology will improve efficiency of the business operations in organizations. The executive also believes that the recent bearish sentiment in the crypto market doesn’t impact the potential of the underlying technology.
Joyce Chang, JPMorgan’s chair of global research has expressed this optimism in a recent interview, as this report shows. Changs’ team in JPMorgan has conducted researches on the adoption of the blockchain technology and found that its’ potential surpasses cryptocurrencies.
Chang’s optimism spells good news for blockchain enthusiasts. The recent state of the crypto market doesn’t reflect a positive sentiment. Chang clearly delinks the potential of the technology from its’ famous application, i.e., cryptocurrency. His thrust is more on what the technology offers.
Chang makes it clear that confining blockchain to cryptocurrencies is proving misleading to the investors and market observers. While Bitcoin and many other cryptocurrencies attempted to focused on changing the future of money, the real value of the blockchain technology lies elsewhere.
To be sure, Chang clearly appreciates what cryptocurrencies like Bitcoin and Ether demonstrated. They showed that the blockchain technology can provide security of peer-to-peer (P2P) transactions, and the decentralization it offers can promote new business models.
However, he is also clear that the longer-term value of the technology comes from the efficiency gain. The transparency it offers will ultimately positively impact many industries, and not only the financial services sector, which is bullish on it.
JPMorgan had earlier expressed their reservations about cryptocurrencies, however, they later started to explore this area. They also have their Quorum, which is a version of Ethereum focusing on enterprise use cases.
Quorum is a smart contract platform that facilitates high transaction throughput with privacy and speed. JPMorgan adequately demonstrates their commitment to the blockchain technology with Quorum. They also show the importance of looking at the technology without the prism of cryptocurrency.
Chang spoke about the work needed on the scalability, regulations, etc. to improve blockchain adoption. His words are timely here, as the scaling issues of the Platforms like Ethereum show.
Chang sees trade finance as a key area where blockchain can make a mark by improving efficiency. Industry players would agree, as the Standard Chartered/Siemens partnership to digitize bank guarantees shows.
Developments across various industries vindicate JPMorgan blockchain optimism. More and more industries are finding key blockchain use cases, for e.g., Intel plans to track addictive medicine supply chain using it.
Supply chain assurance is emerging as a key blockchain use case, as Alibaba’s efforts to track the food supply chain with it shows. IBM and Maersk are using the blockchain technology to improve the efficiency of container shipping.
Even DNA testing can benefit from the blockchain technology, as Nebula Genomics shows. There are enough reasons for JPMorgan blockchain optimism to rub off on the industry observers!
