By Alicia Maher
JP Morgan Chase, alongside Ciena and Toshiba, has made a breakthrough in the groundbreaking research in the feasibility of Quantum Key Distribution System in securing blockchain networks and speeding up scalability. It has been proven that QKD infrastructure can prevent blockchain from quantum exploits and boost communication amongst chains.
In a statement released by the research team on Thursday, QKD can help avert security threats, while improving scalability. It can offer an optimal speed of up to 800 Gbps for the heaviest decentralized applications regardless of climatic factors. Toshiba America thinks the groundbreaking project is revolutionary for blockchain technology.
Three-In-One Network Based on Quantum Physics
QKD incorporates JP Morgan’s Liink, Proof of Concept mechanism from Toshiba, and Waveserver 5 layer from Ciena that operates at 800 Gbps. Liink is a peer-to-peer network, while Proof of Concept is evidence or proof that a project’s model works after experimenting on it.
Head of JP Morgan’s Research Group, Marco Pistoia, shared his excitement about the collaborative efforts from the three firms, stating that the research couldn’t have come at a better time. Pistoia said they would not relent in producing quantum-based computers, which he thinks will alter the security framework of blockchain systems soon.
Considering that the world is edging towards quantum computing, CTO of Ciena Research and Development Steve Alexander said research and development are keys to getting the best results. He referenced Ciena’s layer encryption as a product of in-depth research. Alexander also stressed the importance of robust encryption in distributed networks like blockchain due to the volume of sensitive information shared.
Quantum Computers Are the Future
Quantum Computers are believed to be quicker than their normal counterparts. However, they are not still fully developed like Web3 and metaverse.
JP Morgan has invested in the blockchain niche since last year. The renowned bank has created a business portfolio Onyx, focused on implementing blockchain solutions and storing virtual currencies.
Earlier this week, the largest bank in the United States has also ventured into the metaverse emerging as the first bank to open a branch on Decentraland. The bank’s virtual office allows the purchase of a virtual plot of lands via cryptocurrencies and NFTs.
The bank executives justified their moves, adding that the metaverse will become a key player in various sectors of the world in years to come, with market opportunities valued at more than a trillion dollars. JP Morgan stated that onboarding into the virtual world could help solve issues like verifying accounts and preventing crypto crime.
Yesterday, Chainalysis reported that illicit transactions in 2021 almost doubled from the previous year. The report reveals that 2021 recorded $14B in illicit transactions compared to $7.8B in the previous year.