With its new cloud service, IBM aims to give businesses and developers a means of testing and, eventually, deploying this blockchain-like software for real-world tasks. Using cryptographic algorithms running across a vast network of independent machines, the blockchain can potentially oversee the exchange of any digital asset. With bitcoin, the blockchain oversees the exchange of currency. But it could also bring a new level of efficiency and transparency to the stock market. That’s why the DTCC’s involvement is so important, since it provides the system that ultimately transfers stock ownership from one shareholder to another.
It’s true—so true that even the big Wall Street players are embracing this idea. But it’s an open question how far they’ll take the blockchain, considering that it could overturn their businesses. The DTCC drives stock settlement, for instance; if taken to its logical extreme, the blockchain could replace the DTCC. Plus, such organizations will be slowed by good old industry inertia. DTCC chief technical architect (Robert Palatnick calls the idea of the whole industry using a single system to oversee the stock market “aspirational.”)
In late December, several big-name companies from across both the tech and financial industries—including IBM, JP Morgan, Wells Fargo, and the London Stock Exchange—unveiled a new open source software project based on the blockchain, the global online ledger that underpins the bitcoin digital currency. The project aims to build blockchain-like software that can more efficiently, reliably, and openly track the exchange of financial assets, including stocks, bonds, futures, houses, and car titles. And considering the names involved—particularly the Depository Trust & Clearing Corporation, or DTCC, which oversees Wall Street’s stock settlement system—it’s an enormously significant undertaking.
But these cloud services represent just a small part of the blockchain movement. Nasdaq OMX, the company that oversees the Nasdaq stock exchange, is building a private stock market service based on the blockchain, while online retailer Overstock.com has received SEC approval to offer public stock on the blockchain via a service it calls TØ. For Marley Gray, who oversees Microsoft’s blockchain work, this movement is a way to completely reinvent how financial markets operate. “[Bitcoin] proved that this thing works—that it scales, that it’s secure,” he says.
As with other blockchain advocates, IBM sees the open online ledger as a transparent way to track and trade ownership of houses, cars, and so many other assets. Microsoft is another tech giant that’s also getting behind the idea with its own cloud service based on the blockchain concept. In the fall, Microsoft unveiled a service that revolves around a blockchain alternative called Ethereum, and it plans on building a similar service using yet another alternative called Ripple. Microsoft claims that developers can start using the software in less than 20 minutes.
Ideas can be very powerful. Once an idea gets out there—at least in today’s world—you’re not going to stop it from propagating. Arvind Krishna, IBM
But Krishna has no doubts that the financial industry will embrace this technology in big ways—it has no choice.
They call it the Hyperledger. And it can be yours.
Unlike the blockchain itself, the Hyperledger software isn’t battle-tested. In fact, it’s still being built. But on Tuesday, IBM unveiled a new cloud computing service that lets anyone kick the proverbial tires on this fledgling technology. “Anyone who signs up can use it,” says Arvind Krishna, the IBM Research director who is perhaps the man most responsible for the creation of the Hyperledger project, explains that although you’ll have to pay to spin up the software on a large number of IBM cloud machines, the service is free for use on a few computers.
Last year, researchers under Krishna began building an alternative to the blockchain. And after Krishna and others helped bootstrap the Hyperledger project—which operates under the aegis of the not-for-profit Linux Foundation—IBM donated its code to this open source effort. Others have donated additional code, but it appears that IBM’s contribution will serve as the foundation of the project.
“Ideas can be very powerful. Once an idea gets out there—at least in today’s world—you’re not going to stop it from propagating,” he says. “Those that embrace it with speed and conviction will be better placed for whatever disruption follows—as opposed to being disrupted.”
Ethereum Price Technical Analysis â ETH/USD Attempting Upside Break
Ethereum price bounced sharply against the US Dollar and Bitcoin, and now ETH/USD is looking to gain momentum to close above $275. Yesterday, there was an attempt to move above $260 in ETH price
Ethereum Classic Price Technical Analysis â ETC/USD Nearing Key Level
Ethereum classic price gained traction recently against the US Dollar and Bitcoin, and ETC/USD is now looking to settle above a key resistance. Yesterday, there was a failed attempt to move above $
Blockchain Lottery TrueFlip Launches ICO
TrueFlip, the international Anonymous blockchain lottery with instant payouts, successfully launched its ICO on June 28, 2017. The blockchain-based lottery has already sold 2,012,960 TFL tokens of
Pantera Capital to Raise $100 Million in Investment for ICO Hedge Fund
The $600m market for initial coin offerings may soon be set to expand.
Announced today, investment firm Pantera Capital is launching a new hedge fund focused on investments solely in tokens that po
World Economic Forum Blockchain White Paper Gets Warm Reception
The World Economic Forum (WEF) today published a dedicated Blockchain report detailing how the technology will flow into the global economy. Described as a white paper, Realizing the Potential of
Burger King in Russia Will Enable Bitcoin Payments Later This Year
Getting more retailers to accept Bitcoin payments is never a bad idea. Convincing them to do so is a different matter, though. This is especially true in Russia, although things are slowly evolving
CFTC Chief Asks Congress for More Money to Oversee Blockchain
The US Commodity Futures Trading Commission has cited the advance of technologies like blockchain in a request to obtain additional funding for its oversight activities.
Testimony from acting CFTC
Privacy-Centered Altcoin Zcoin Implements Merkle Tree Proof as PoW
Privacy-centered altcoin, Zcoin, has announced the first working implementation of Merkle Tree Proof (MTP) as a proof-of-work (PoW) algorithm. The Zcoin team claims the development will promote high