IBM’s big bet on bitcoin technology blockchain


THAT WAS A FINE INTERVIEW, YOUNG MAN. MUCH OBLIGED TO YOU.>>>KNEW THIS THIS IS FASCINATING. GOLDMAN SACHS SAYS MOST OF THESE CRYPTOCURRENCIES LIKE ABOUT IT COIN TO BE WORTHLESS HAVEN’TLY, HOWEVER OUR NEXT GUEST IS INTO THE TECHNOLOGY BEHIND BITCOIN. THAT TECHNOLOGY IS BLOCKCHAIN. SPECIAL GUEST ON THE PROGRAM TODAY. BRIDGET VAN COLINGTON RIGHT PRONUNCIATION? SENIOR VICE PRESIDENT OF IBM. YOU ARE INVOLVED IN IBM’S BLOCKCHAIN PROJECT. AS I UNDERSTAND IT YOU WILL CREATE A LAB FOR BLOCKCHAIN TECHNOLOGY AND HOW YOU CAN APPLY BLOCKCHAIN FOR REAL LIFE. IS THAT WHAT YOU’RE UP TO?>>18 MONTHS AGO WE STOOD UP BUSINESS DRIVING BLOCKCHAIN FOR OUR CLIENTS. IBM IF YOU THINK ABOUT OUR COMPANY, HELPS OUR CLIENTS USE INNOVATIVE ECONOMY TO MAKE BUSINESS WORK BETTER. THE TECHNOLOGY BEHIND BRIT COIN BASICALLY IS SHARED LEDGER WHERE MULTIPLE PATIENTS IN AN EXCHANGE HAVE AN IMMUTABLE RECORD WHICH IS ABLE TO CHANGE OVER TIME WITH THE CONTRACT T CAN BE SEEN INSTANTLY. BECAUSE IT IS IMMUTABLE IT CAN BE TRUSTED BETWEEN MANY PARTIES AND ALSO PERMISSION SO ONLY PEOPLE SEE WHAT YOU WANT THEM TO SEE. THE BUSINESS MODEL IMPLICATIONS ARE HUGE. STUART: GIVE ME AN EXAMPLE HOW YOU AT IBM COULD USE BLOCKCHAIN TECHNOLOGY, NOTHING TO DO WITH CRYPT TOE CURRENCIES. HOW DO YOU APPLY IT TO REAL LIFE SO I CAN UNDERSTAND THIS.>>THERE ARE MANY, MANY USE CASES AND INVESTMENTS WE STOOD UP FOR BLOCKCHAIN BUT SOME FANTASTICALLY POWERFUL ONCE, FOR INSTANCE THE JOINT VENTURE WE ANNOUNCED A COUPLE WEEKSING A WITH MAERSK. GLOBAL SHIPPING SUPPLY CHAIN, 9% OF THE FOODS WE USE COME THROUGH THAT. IT IS 8 TRILLION A YEAR. 15% OF COSTS ARE PAPERWORK THAT GO BETWEEN INDIVIDUAL PARTIES WHICH PUT IN A BLOCKCHAIN CAN ESSENTIALLY BE ELIMINATED. WHICH MEANS WE CAN ACCELERATE TRADE AN MANY MORE CAN PARTICIPATE. STUART: HOLD ON. I’LL TRYING TO GET TO GRIPS WITH THIS. YOU HAVE A PARTNERSHIP WITH MERSK. THEY’RE A BIG SHIPPING COMPANY.>>YES. STUART: SOME YOU MERGE BLOCKCHAIN INTO THE SUPPLY CHAIN IS NOT THE WORD TO OUST, PUT IT ON BLOCKCHAIN, TOTALLY PRIVATE, NOBODY CAN HACK IT?>>PERMISSION TO SEE IT WE AT IBM RECOGNIZE PART OF THIS IS BUILDING TECHNOLOGY THAT ENTERPRISES CAN RUN ON. PERMISSIONED ONLY THOSE IN THE BLOCKCHAIN CAN SEE IT. IT IS SECURE BECAUSE WE PUT IT ON IBM SECURE CLOUD. THAT SORT PA OF THE INVESTMENT WE’RE MAKING SO AN ENTERPRISE CAN COUNT ON THE TECHNOLOGY. STUART: HOW MUCH MONEY ARE YOU PUTTING INTO THE BLOCKCHAIN VENTURE, NOT WITH MAERSK?>>YOU KNOW ABOUT OUR STRATEGIC IMPERATIVES WE TRANSFORM IBM FOR THE NEW ERA. IT IS ONE OF OUR MAJOR INVESTMENTS. STUART: HOW MUCH? CAN YOU TELL ME?>>A LARGE AMOUNT OF MONEY. INVESTMENT WE’RE MAKING FOR MAERSK. STUART: IS IT BILLIONS?>>IBM SPENDS $6 BILLION EVERY YEAR ON RESEARCH. WE’RE PULLING OUR RESEARCH. YOU’RE PULLING OUR SOFTWARE DEVELOPMENT INTO IT. IT IS ONE OF OUR MAJOR CCs FOR INVESTMENT. IF YOU THINK ABOUT IT, IMPACT FOR THE WORLD IS HUGE. IT TAKE AS WEEK TO RECALL A FOOD PRODUCT. BLOCKCHAIN WITH THE WORK THAT WE’VE DONE WITH WALL MART AND GROUP OF CONSUMER COMPANIES THEY CAN GET A RECALL AND TRACK THE FOOD IN TWO SECONDS. HALF A MILLION PEOPLE GET SICK A YEAR. 460,000 PEOPLE DIE, SORRY. STUART: I AM IMPRESSED. I THINK WE’RE ALL IMPRESSED. WE’LL LISTEN VERY CAREFULLY. WOULD YOU BE INSULTED IF I WERE TO SAY IBM IS — IBM IS OLD TECH AND YOU ARE –>>NOT GOING TO TAKE THAT PERSONALLY. [LAUGHTER] STUART: IBM IS OLD TECH AND YOU AND YOUR BLOCKCHAIN DIVISION, YOU’RE DOING YOUR BEST TO MAKE IT NEW TECH, THAT RUE?>>I WOULD SAY THAT IBM IS ABSOLUTELY NOT OLD TECH. WE HAVE BEEN TRANSFORMING FOR EVERY ERA OF TECHNOLOGY FOR THE LAST 100 YEARS. THIS IS THE NEWEST ONE. WHAT IS THE TRANSFORMATION? MOBILE, BIG DATA, ARTIFICIAL INTELLIGENCE AND CLOUD, ALL OF THOSE ARE PART OF PORTFOLIO TRANSFORMATION THAT IS DRIVEN FOR IBM. THAT IS VERY NEW TECH. STUART: YOU HAVE A SLIGHT ACCENT. MIND IF I GUESS.>>YOU’RE ABSOLUTELY BRILLIANT. GLAD YOU DIDN’T SAY I WAS

10 thoughts on “IBM’s big bet on bitcoin technology blockchain”

  1. Stupid how this guy is trying so hard to FUD and avoid her from speaking about bitcoin. Hey newsman… "BITCOIN BITCOIN BITCOIN BITCOIN BITCOIN BITCOIN BITCOIN BITCOIN!!!"

  2. "Only those in the blockchain can see it. It is secure because it is stored in IBM's secure cloud." – in other words, "Trust IBM with your data." The entire point of Bitcoin is to eliminate trusted third parties like IBM.

  3. IBM has been transforming and updating new technology for over a 100 years….im sure the Holocaust survivors love that one. South Africa…i cant be making tho up…this is pure gold tv

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