Recently blockchain fans got major news, with two giants IBM and Microsoft announcing their support for Blockchain-as-a-Service (BaaS) in their cloud services. Are we going to see some cloud-based blockchain developments soon? sounds like it.
Blockchain emerged from Bitcoin cryptocurrency hype as the innovative distributed ledger technology behind Bitcoin. But while cryptocurrencies are well past Gartner’s peak of inflated expectations, blockchain is gaining growing interest from startups and enterprises alike. The interest in blockchain isn’t limited to just cryptocurrencies but also extends into other financial use cases, and even transcends FinTech realm into non-financial use cases such as electronic voting, smart contracts and ownership verification for art and diamonds.
The interest that blockchain drove the creation of different “flavors” of the distributed ledger notion, beyond the initial one used for Bitcoin. One interesting initiative recently launched is the hyperledger project, a community-backed open-source standard for distributed ledger. It was launched December 2015 under the Linux Foundation by big financial services names such as J.P. Morgan, Wells Fargo, London Stock Exchange Group and Deutsche Börse, as well as equally big IT players such as IBM, Intel, Cisco and VMware. As part of joining Hyperledger, IBM has open sourced a significant chunk of the blockchain code it has been working on.
IBM launched its blockchain-as-a-service in production February. In order to encourage adoption of its new cloud service, IBM also opens garages for blockchain app design and implementation in London, New York, Singapore and Tokyo.
Microsoft was first to move in on blockchain. Last November Microsoft launched a Blockchain-as-a-Service on its Azure cloud based on Ethereum in partnership with ConsenSys. But while IBM bet on hyperledger project, Microsoft took a different approach and spread its bet across multiple projects and partnerships. During last month Microsoft added to its blockchain partnerships Augur, Lisk, BitShares, Syscoin and Slock.it, and this month also added Storj.
I estimate IBM and Microsoft would not remain alone in this game. Other vendors will join in to offer platforms and cloud services to accelerate the development of blockchain-based applications. This will be a serious enabler for innovation around this fascinating technology, whether for young innovative startups bootstrapping on low budget, or for financial institutions (and other enterprises) lacking in-house skills in this cutting-edge technology.
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