IBM Borrows Blockchain to Create Smart Contracts – The Basics about Cryptocurrency

One of the world’s leading technology companies has decided to utilize the blockchain technology for smart contracts.

According to a report of the Wall Street Journal, International Business Machines Inc. (IBM) is planning to develop an open-source software that could — one day — be used to create digital contracts. For this, the tech giant has opted to create its own version of blockchain technology that would promote secure and accessible record-keeping on web.

The IBM’s announcement is a latest addition to a long list of software and finance institutions that have previously opted to experiment with the Bitcoin’s underlying technology. They include: UBS, Citi, Barclays, Nasdaq, NYSE and others. However, IBM’s plans to open-source the project individuates it from others.

And perhaps this is what IBM is truly known for. The company has a history of making significant contributions to several open-source projects. For instance: it had moved Apache server and Linux OS towards mainstream acceptance. As widely known, these projects later earned a speedy industry adaption. One can perhaps wonder that IBM is planning to do something same to blockchain.

IBM Research’s senior vice president, Arvind Krishna, opened up about their plans regarding the blockchain, saying they find the technology “extremely interesting and intriguing.” While discussing it further with the WSJ, Krishna spoke in lengths about the possible integration of blockchain into the mainstream businesses. He presented an instance in which banks and businesses could share the same system for record.

Alongside the visions, Krishna also discussed the challenges of creating an open-source, yet secure record keeping technology.

“Using open source software to shake up the world of contracts is no simple matter. But the payoff could be huge,” Mr. Krishna told WSJ.

“I want to extend banking to the 3.2 billion people who are going to come into the middle class over the next 15 years. So I need a much lower cost of keeping a ledger. Blockchain offers some intriguing possibilities there.”

In the end, it is another win for blockchain.