Investment bank JPMorgan lately tested blockchain’s decentralised network to see if two machines could transact autonomously. And it was actually out of this globe. The experiment involved carrying out blockchain-based payments involving satellites in space “which validated the approach towards a decentralized network where communication with the earth is not necessary,” according to a statement by the Nasdaq-listed manufacturer and supplier of nanosatellites for buyers in the academic, government, and industrial markets – GomSpace. The transaction was created utilising the company’s GOMX-4 satellites as an alternative of JPMorgan sending its personal satellites in space. The in-orbit demonstration involving satellites was the “world’s first bank-led tokenized value transfer in space, executed via smart contracts on a blockchain network established between satellites orbiting the earth.”
“JPM: First bank with space-based payments using multiple satellites, enabling machine-to-machine payments, programmable value transfer, perhaps an intergalactic currency backed by H2O/O,” Christine Moy, Global Head of JPMorgan’s blockchain network Liink tweeted lately. According to GomSpace, such space-based payments have opened the door to a prospective peer-to-peer DvP (information versus payment) satellite marketplace in the lengthy term, as private organizations prepare to launch their personal constellations.
“I strongly believe that JPMorgan could have done this payment test without involving outer space and the satellites. They chose outer space because it is possibly the highest level of decentralized environment. A blockchain network created between the satellites and token transfer was done without any sort of communication with earth, it is similar to doing a P2P transaction on earth within a blockchain network without the use of any formal payment platform. This will enable payments between connected smart devices/IoT devices without any human intervention,” Shivam Thakral, CEO of cryptocurrency exchange BuyUcoin told TheSpuzz Online.
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“The idea was to explore IoT payments in a fully decentralised way,” Reuters reported quoting JPMorgan’s blockchain business enterprise Onyx CEO Umar Farooq. “Nowhere is more decentralised and detached from the earth than space,” he added. Moreover, according to Tyrone Lobban, Head of Onyx’s blockchain innovation accelerator Blockchain Launch, the test also showed that it could be doable to make a marketplace exactly where satellites send each and every other information in exchange for payments, as more private organizations launch their personal devices into space.
Along with Amazon and SpaceX, organizations such as OneWeb, Facebook, India’s Pixxel have reportedly been working on sending their personal satellites to space. “We are proud to have supported J.P. Morgan as they explored this novel use case of a space-based payment infrastructure utilizing blockchain technology,” Niels Buus, CEO, GomSpace stated in a statement. GomSpace’s GOMX-4 satellites would additional permit the firm to provide fast in orbit demonstrations, such as JPMorgan’s project, as a service to its buyers to discover new utilizes of space technologies.
Back on earth, examples of IoT payments that could grow to be a reality sooner incorporate a clever fridge ordering and paying for milk on an e-commerce web site, or a self-driving automobile paying for gas, according to Farooq. “As far as the future of payments is concerned, this will bring ultimate decentralization in the financial system where even the internet won’t be required to execute payments. This will help in making blockchain technology mainstream and global banking giants will move towards blockchain technology for providing new-age banking services,” added Thakral.