Tech and Financial Giants Back New Blockchain Consortium

Bitcoin’s blockchain technology is being eyed by various major players in the financial and technology sectors. A new transaction network based on blockchain technology will be developed by IBM and Wells Fargo, as well as London Stock Exchange Group Plc. By uniting forces with the Linux Foundation, the goal is to create a public network on which blockchain applications can be built to communicate with each other.

Also read: Target Wish List App Vulnerable To Data Hijacking

Transforming Business Transactions With Blockchain Technology

As part of this collaborative project, IBM will contribute tens of thousands of lines of existing code to this new project, and put several dedicated developers on the concept. Additionally, IBM will also share some of its intellectual property with the Linux Foundation and Wells Fargo to make this blockchain-based transaction network a success.

Linux Foundation executive director Jim Zemlin stated:

“As with any early-stage, highly-complex technology that demonstrates the ability to change the way we live our lives and conduct business, blockchain demands a cross-industry, open source collaboration to advance the technology for all.”

It is no secret the blockchain is capable of transforming business and finance as we know it, especially considering how intertwined both of the latter sectors are. Blockchain technology can process nearly any type of money transfer or trade in a matter of minutes, rather than waiting several days for transactions to complete.

Truth be told, there are quite a few big names in the financial industry partaking in this project. CLS, the largest cash settlement system in the currency market, as well as Swift, are both participating in this plan to revolutionize the financial ecosystem by using blockchain technology.

But it’s not just the financial industry who wants to shake things up, as there is a massive interest from tech titans as well. Companies like Cisco, Intel, Digital Asset Holdings LLC, and others, are all part of this new initiative, by dedicating manpower, resources, and code to the project.

Adopting blockchain technology is a major speed boost for financial transactions, as settlement and clearing can be reduced to a handful of seconds. However, without proper communication between parties, that process will not be fully streamlined. That is why this new blockchain consortium wants to focus their attention on communicative blockchain-based applications.

Bitcoin Leading By Example

Whenever someone talks about the blockchain, most people will think of Bitcoin. Combining a distributed ledger with user privacy and a decentralized money supply has intrigued quite a few people over the years. So much even that traditional financial players are flocking to blockchain technology in an attempt to modify Bitcoin’s ecosystem into something that works for them.

This new initiative by both financial and tech giants is another step along the way to bring blockchain technology – and perhaps even Bitcoin – to mainstream consumers in the years to come. There is no better time than now to be involved in digital currency or its technology, as exciting things are bound to happen very soon.

Source: Bloomberg

Images credit 1,2,3