IBM Continues Investigating Bitcoin’s Blockchain And Announces A New Project

The Computing-Tabulating-Recording Company was founded in 1911. Located in New York city, it was renamed International Business Machines (IBM) in 1924. The company has a long and illustrious history, and is constantly evolving.

Over the past decade, IBM has been entering markets such as business intelligence, data analytics, business continuity, security, cloud computing, virtualization and green solutions.

Watson, an IBM artificial intelligence computer, is capable of "learning" as it operates.

The tech giant continues to stretch its reach, and stay on top of developments, by embracing innovation and targeting new markets. At the heart of the company’s development is a collection of 12 laboratories across the globe, collectively driving IBM Research.

“For more than sixty years, IBM Research has been the innovation engine of the IBM corporation. From helping the Apollo space missions land on the moon to the discovery of fractals; from the technology behind laser eye surgery to a question answering computer called Watson now being applied to health care, IBM Research continues to define the future of technology.”
— – IBM    

One of IBM’s first ventures into blockchain technology was the research and development of Autonomous Decentralized Peer-to-Peer Telemetry (ADEPT), in partnership with Samsung. Announced late last year, the system uses elements of the blockchain’s design to build a distributed network of devices, known as the Internet of Things.

According to the ADEPT draft paper, which is currently under final review, “Applying the blockchain concept to the [Internet of Things] offers fascinating possibilities. Right from the time a product completes final assembly, it can be registered by the manufacturer into a universal blockchain representing its beginning of life. Once sold, a dealer or end customer can register it to a regional blockchain (a community, city or state)."

ADEPT uses Ethereum, BitTorrent, and Telehash to underpin the new concept. A very simple explanation of how this technology works is through the use of a “smart” washer. It has the ability to order its own parts, update its own software, and barter with other appliances in the sharing economy through seamless access, to achieve energy efficiency.

Adding to the research pool, and extending the tech giants reach into new markets, earlier this year IBM announced its newest research center, an innovation and collaboration space at iHub, the heart of Kenya’s tech community, in Nairobi.

The space was announced in July, and hosts an open working environment for software developers and start-ups. The fledgling entrepreneurs are given access to IBM’s expertise, education and technology tools.

One of the first products to come out of iHub is from Bitsoko, a digital currency and blockchain technology startup, and one of the companies benefiting from IBMs investment in the region.

Bitsoko used IBM’s Bluemix, a hybrid cloud development platform, to create a mobile wallet application based on blockchain technology. "As a Kenyan entrepreneur with global ambitions, being able to interact with a company like IBM and discuss ideas, extend our professional network and access cutting-edge technologies is a potentially game-changing opportunity,” said Allan Juma, Bitsoko co-founder and Chief Developer.

"Africa has millions of entrepreneurs who are experts in their own markets and who are now looking to technology to differentiate and compete on the global stage," explained Nick Nesbitt, IBMs East Africa General Manager. "With the IBM Innovation Space @ iHub, we are extending our presence right into the heart of the local technical community so that entrepreneurs and start-ups have access to the tools and expertise to succeed in this exciting new era of Africa’s economic development."

In a recent post on A Smarter Planet, the Senior Vice President and Director of IBM Research, Arvind Krishna, described the company’s direction. “Our research and development teams are working on versions of blockchain that will be suitable for business, drawing upon our research insights and other related open source technologies. They are exploring a variety of blockchain implementations with our clients, working up specifications and preparing to contribute to open source projects that aim to make blockchain ready for business.”

“Blockchain-based systems could help radically improve whole industries, beginning with banking and insurance. But its impact could be much broader. It could make a difference whenever valuable assets are transferred from one party to another and whenever you need to know for certain that a piece of digital information — anything from electronic artwork to the terms of a business agreement — is unique and unchangeable by any party without the agreement of all parties.”
— – Arvind Krishna, Director of IBM Research

This leads to IBM’s latest research project into blockchain technology, which will investigate these possibilities. The company is planning to design their own open-source blockchain, complete with smart contracts, which will be available for companies to test within the next few months.

"[Blockchain’s] a completely novel architecture for business—a foundation for building a new generation of transactional applications that establish trust and transparency while streamlining business processes."
— – Krishna

IBM’s announcement came merely days after R3 CEV, revealed that nine major financial institutions have teamed up to explore blockchain technology. The banking partnership currently includes Barclays, BBVA, the Commonwealth Bank of Australia, Credit Suisse, J.P. Morgan, State Street, the Royal Bank of Scotland and UBS.