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IBM Goes All-In With Blockchain

  • Alex Morris
    📰 News

    After learning from its mistakes, IBM won’t miss an opportunity to become a leader in Blockchain


IBM Goes All-In With Blockchain
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With numerous partnerships and a huge number of patent applications, US-based tech giant IBM is undoubtedly the Blockchain leader among all American companies. However, diving into a new technology is always risky.   

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Pumping new life in IBM

As of now, more than 1,500 IBM employees are involved in 500 Blockchain-related projects that cover a myriad of different areas (from banking to food safety). Jerry Cuomo, vice president of IBM Blockchain, is currently trying to expand the Blockchain adoption, signing partnership deals with Walmart, Maersk and the USFDA.    

In a recent interview with VentureBeat, Cuomo, who started to get involved in Blockchain technology about four years ago, claims the success of Bitcoin and Ethereum was a wake-up call for him. While trying to utilize the Ethereum Blockchain, they hit licensing roadblocks, so they decided to create their own in close cooperation with a couple of other companies. That resulted in the Hyperledger Project.  

Encouraging innovations

IBM has created its own superefficient Blockchain version called Hyperledger Fabric that can be utilized for securely conducting millions of transactions in a single second. Bitcoin and Ethereum, for comparison, even remotely cannot provide such a level of scalability. The IBM Blockchain also makes emphasis on privacy and security.

Cuomo claims that there will be numerous innovative technologies. He claims that similarly to operating systems, there cannot be just one single Blockchain. When asked about the prospect of regulations, Cuomo said that he wants the US officials to focus on different use cases.


Another risky move

However, some experts predict that it could be a rather risky endeavor. IBM has already tried to pioneer with AI by introducing the Watson supercomputer, but the commercial adoption of this technology proved to be rather difficult, which subsequently allowed other companies to outpace IBM. In August, there were numerous reports that IBM’s Watson is not living up to the initial expectations. However, the company’s focus on Blockchain may eventually pay off hugely.  

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It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst


It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst
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The fact that Bitcoin saw its price breaking above $5,000 at the beginning of April made everyone highly optimistic about the prospects of a full-fledged bull run. However, crypto bulls shouldn’t hold their breath since it could take decades for the number one currency to recover from its epic downfall.

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Bitcoin compared to other bubbles  

After comparing Bitcoin to other bubbles, UBS analyst Kevin Dennean came to a conclusion that BTC will most likely follow their lead, Business Insider reports.
However, here’s a catch – Bitcoin will have to undergo a long-lasting recovery, so it is not reasonable to expect another bull run in the nearest future. For comparison, it took the Dow Jones Industrials 22 years to reach its previous peak.   


‘We're struck by how long it took other asset bubbles to recover their peak levels (as long as 22 years for the Dow Jones Industrials) and how pedestrian the annualized returns from trough to the recovery often are,’ Dennean claims.

Bitcoin compared to other bubbles  

Picture: ©FactSet

With that being said, it is still not guaranteed that a certain bubble retests its ATH even after decades since a big burst. Nikkei, despite reaching its 20-year highs in October 2017, was still 50 percent lower than its ATH that was recorded in 1989.

Nikkei

Picture: ©ATLAS

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When you lose, you win

During the peak of the crypto market, Bitcoin was frequently compared to the infamous tulip mania, but these two barely had anything in common (except for the horrible stability of value). Hence, it hardly makes sense to apply a certain pattern and expect Bitcoin to behave in a similar fashion to other bubbles.

Historically, enormous price crashes actually benefited Bitcoin. As reported by U.Today, Bitcoin trader recently noticed that the BTC price rise 5.1-16.89 times every 70+ percent plunge. Crypto bulls have every reason to expect a similar outcome this time around.

'Shadow of bull statue on texture tiles floor metaphor of bull market is coming for stock market or investment asset' image by 123rf.

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