 |
| JPMorgan Chase tests blockchain payments in space |
Investment bank JPMorgan recently tested blockchain payments between satellites orbiting the Earth to demonstrate that digital devices can leverage the technology behind virtual currencies in transactions.
So-called IoT devices have been connected to consumer electronics, and banks hope these smart devices will be ready to process payments when making transactions independently.
Omar Farouk, CEO of JPMorgan's Onyx blockchain, thinks the room is a good place to experiment.
Farouk said, “Our idea is to explore the internet of payment issues in a completely decentralized manner. There is no place more decentralized and separated from the ground.”
To conduct space experiments, the company's blockchain team didn't send its own satellites into space, but worked with the Danish company GOMspace, which enables third parties to run the software via its satellites.
Farouk stated that satellite tests have shown that blockchain networks can conduct transactions between everyday objects.
Testing has also shown that launching their own companies into space could create a market in which satellites can send data to each other for a fee.
Back on Earth, examples of Internet of Things payments that could soon become a reality include ordering smart refrigerators and paying for them through e-commerce sites or self-driving cars that pay for fuel.
Financial firms have invested millions of dollars in finding applications for blockchain technology in hopes of reducing costs and simplifying more complex IT operations such as processing securities or international payments.
One of the most active of blockchain technology is JPMorgan, which is an investment banking firm. In 2016, the company announced that it was creating a distributed ledger called Quorum.
He also developed a cryptocurrency called JPM Coin and founded Onyx in 2020. Onyx has over 100 employees and a blockchain app ready to generate income for banks.
Farouk said: The department’s applications include Link, a payment information network of more than 400 banks, and a project to replace paper checks and IoT experiences.