Hang on to your seats. IBM is making a comeback into the trending digital currency space with plans to hit it big with the blockchain movement. I'm being dramatic, but really this could be a game changer for IBM as the fourth largest private employer in the United States.
Today, IBM announced it was selected by a group of seven of Europe's largest banks to build a new platform based off its own blockchain, powered by the Hyperledger Fabric. IBM will run the Digital Trade Solution on its cloud service and will simplify the entire trade process that involves managing, tracking, and securing domestic and international transactions. Given the strict privy laws in the United States and Europe, this announcement could be even more relevant due to the current trend of digital currency and blockchain technology.
What is Hyperledger Fabric (www.ibm.com/blockchain/hyperledger.html)?
Hyperledger, an open source collaborative effort to advance cross-industry blockchain technologies, is hosted by The Linux Foundation®. IBM provides blockchain solutions and services leveraging Hyperledger technologies, including Hyperledger Fabric and Hyperledger Composer.
What makes IBM's blockchain different from other blockchains?
IBM's Hyperledger Fabric is unique in the fact that it does not require anyone to mine to create computations. The Hyperledger Fabric also does not require a digital currency to function. WIth the rise in crypto currency, no one is talking about a blockchain movement without a coin. While we have seen investments by companies like Fidelity and Microsoft, IBM may be the first large scale company to formally break into this space and be competitive.
IBM's website is set up to compare its blockchain to Bitcoin and Ethereum. IBM could also compete indirectly with Ripple's (XRP) platform as it continues to develop, scale, and promote its blockchain technology.
Despite this announcement, IBM's stock is down %30 today.