Quorum: Everything You Need to Know

With Quorum, security, scalability, and efficiency all intersect with one dynamic blockchain solution. Able to tackle complex needs across a wide range of industries, discover why organizations across the United States and the globe are trusting Quorum.

Quorum is an enterprise-focused, open-source, and permissioned blockchain protocol based on Ethereum. Originally developed by JP Morgan—one of the largest financial organizations in the world—it was eventually acquired in 2020 by ConsenSys, who are still managing its development today.

Like Ethereum, Quorum allows developers to construct and deploy decentralized applications (dApps), smart contracts, and Ethereum-compatible tokens and coins. In fact, the programming language used for Quorum’s smart contract development is the same as Ethereum’s: Solidity. Because many developers are already familiar with Solidity, companies implementing Quorum can rely on previously established programming skills for a smoother transition.

While similar to Ethereum, Quorum has been optimized for enterprise use cases in several ways:

1. Permission Functionality: Quorum is designed to support permission-based blockchain networks. Therefore, rather than being open to the general public like the Ethereum mainnet, Quorum builds blockchain networks where all participants are known and trusted. This also makes Quorum highly modular and customizable.
2. Data Privacy: Quorum gives users the power to regulate who can access and view data. Data sharing can be scaled up or down to be accessible to the public, just the participating nodes on the private network, or even just a particular subset of participating nodes.
3. Improved Performance: Because of Quorum’s scalability and low transaction latencies, it can support higher transaction traffic per second than protocols like Ethereum, with reported speeds of around 200 transactions per second. This makes Quorum uniquely suited for high-volume applications.
4. No Gas Fees: Another difference from Ethereum is that Quorum has no gas fees, meaning there’s no cost to submit transactions to Quorum’s network.
5. Voting: Quorum uses a voting-based consensus mechanism to support high throughput.

Built with enterprise in mind, Quorum has been adopted by many industries where privacy and security are paramount. The following are just a few examples of Quorums wide-variety of use cases:

Banking and Finance

It makes sense that a blockchain protocol developed by JP Morgan would be suitable for DeFi applications. Quorum can be utilized as a Blockchain-as-a-service—BaaS—to develop a ledger system for auditing financial transactions. Some of the most prominent uses of Quorum in these sectors include tokenizing cash, making commercial bank payments or interbank payments in association with central banks, and exchanging transaction information.

INSURANCE

Within the insurance industry, Quorum can be used to improve operations such as automating carrier-to-carrier claim payments, ensuring security through the blockchain ledger, and significancy improving the speed of money transfers. One of the best examples of Quorum’s impact on the insurance sector is State Farm, who, alongside USAA, leverage the protocol to emphasize insurance claim subrogation, thus laying the groundwork for faster auto-insurance claim payments.

Government and Public Sector

Because privacy and security are such critical components of the public sector, Quorum is an ideal blockchain solution. Alastria is just one example of how well Quorum works here. As one of the world’s largest public-permissioned multisector blockchain platforms, Alastria is the first regulated blockchain ecosystem in the world. With Quorum’s help creating a national network, Alastria fosters collaboration of the private sector with the academic world and public administration.

Supply Chain

Quorum can improve supply chain management in several ways including automating inventory tracking and shipment tracking as well as verifying the authenticity of goods. One distinct example of the benefits of Quroum to a business’s supply chain comes from Starbucks. Using Quorum alongside Microsoft’s Azure Blockchain Service, Starbucks has improved their ability to successfully track the production of their coffee.

Healthcare

According to the HIPAA Journal, 1 million healthcare data breaches occurred in 2022. To combat this problem, healthcare providers are looking to blockchain solutions to safeguard data without impeding its movement. The Synaptic Healthcare Alliance, is specifically looking at Quroum as the answer. Leveraging the security and performance of Quroum, the Synaptic Healthcare Alliance’s objective is to create an industry-wide database for healthcare providers that improves data quality and reduces administrative costs. This is done by sharing provider data inputs alongside the modifications introduced by the participants within the blockchain network.

From scalability and security to customization and reliable performance, Quroum is a powerful solution for creating and deploying dApps, smart contracts, and tokens across a wide range of industries. Contact SIMBA Chain