IBM isn't new to the crypto game, but they are about to up the stakes substantially.
Last October, IBM started testing some applications using the Stellar Platform, but now they are expanding their cryptocurrency business applications in a number of ways.
IBM told CoinDesk that they have been meeting with executives from commodities trading platforms, big businesses, and even central banks in order to explore how cryptocurrencies can help save them money and generate revenue.
The reason for this is simple...
IBM's head of blockchain development Jesse Lund, had this to say:
"We're seeing tons of demand for digital asset issuance across the board."
Jesse Lund was hired from Wells Fargo earlier this year to help develop their cryptocurreny strategy.
He also added this:
"What's happening is there's this emergence of a new segment that could actually be one of the biggest segments, that is a permissioned but public blockchain network typology."
Permissioned but public blockchain?
That sounds interesting and may mean they are creating their own.
Blockchains like bitcoin and ethereum are permissionless blockchains where anyone can use the network provided they are playing by the rules. A permissioned blockchain would require some kind of approval before being allowed to participate in the network.
Banks and other institutions have been experimenting with permissioned blockchains for some time now.
IBM says they are currently exploring several different options.
According to Jesse LUnd, IBM is seeing demand for 3 main types of tokes.
- Securities Tokens
- Utility Tokens
- Commodities Tokens
Lund says they are seeing a move towards tokens that are backed by something, for example, a claim on a portion of the gold sitting in a vault somewhere.
Using smart contracts and blockchain to verify ownership etc.
IBM says they have also been talking to Central Banks about the possibility of using their own currencies on a blockchain, though they say that is still a ways off.
This is the start of big businesses getting involved in the space.
Where this ultimately pushes the technology is anyone's guess.
Though, even if a lot of these types end up making their own tokens, there will still need to some form of universally recognized token to go between all these different companies.
Which is why a global, decentralized token, like bitcoin, still has a very bright future.
More about IBM's involvement in the space can be read here:
Stay informed my friends.
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