The study explores how the Internet of Things (IoT) technology can be incorporated into payment processing. Banking facilities like JPMorgan are seeking to leverage the technology that is mainly linked to consumer electronics. According to Umar Farooq, JPMorgan blockchain business Onyx CEO, the test shows that blockchain technology can power transactions between everyday objects. He adds that the study points to the possibility of establishing a marketplace where satellites can provide each other data in exchange for payments. Farooq explains the motivation to conduct the test in space. He states that: In the real world, IoT payments can potentially be power devices like smart fridges that can order and pay for consumer commodities like milk on digital retail platforms.
JPMorgan’s aggressive blockchain approach
The experiment highlights JPMorgan’s aggressive approach towards exploring the capabilities of blockchain in the banking sector. Besides establishing Onyx, JPMorgan created its own distributed ledger called Quorum but sold it to blockchain firm Consensys. Furthermore, the bank has its digital coin called JPM Coin. Despite boasting a catalog of blockchain products, JPMorgan is still conducting further research before mass commercialization. The bank maintains that its interest in blockchain is to relieve the traditional money transfer systems’ pain points. Most importantly, JPMorgan’s blockchain activities are acting as a catalyst towards making cryptocurrencies mainstream.
