JPMorgan tests blockchain technology for IoT devices

  • Blockchain technology could soon help in payments between smart devices.
  • Soon your fridge would be able to pay for your milk using this technology.

Investment bank JPMorgan recently examined blockchain’s decentralized network to see if two devices could transact automatically. And it was completely out of this world. The research involved carrying out blockchain-based transactions between satellites in space, “which confirmed the approach towards a decentralized network where a connection with the earth is not necessary,” according to a report by the Nasdaq-listed manufacturer and supplier of nanosatellites for customers in the government, academic, and commercial markets – GomSpace.

How will JPMorgan test blockchain technology?

The payment was made utilizing the company’s GOMX-4 satellites instead of JPMorgan sending its satellites in space. The in-orbit display between satellites was the “world’s first bank-led value transfer in space, done via smart agreements on a blockchain network installed between satellites orbiting the earth.”

“JP Morgan is the first bank with space-based transactions using multiple satellites, enabling machine-to-machine transactions, programmable value transfer,” C. Moy, Global Head of JPMorgan’s blockchain network Link, stated recently.

“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 the decentralized environment. A blockchain network created between the satellites and token transfer was done without any communication with earth. It is similar to doing a P2P transaction on earth within a blockchain network without 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 recently.

Along with Amazon and SpaceX, companies such as OneWeb, Facebook, India’s Pixxel have reportedly been working on sending their satellites to space.
GomSpace’s GOMX-4 satellites would further allow the company to provide rapid in orbit demonstrations, such as JPMorgan’s project, as a service to its customers to explore new uses of space technology.

How it will be useful?

On earth, IoT payments that could be used sooner include an intelligent fridge and paying for milk or a self-driving car 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 people won’t require even the internet 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.