In recent years, financial institutions have begun to appreciate the perks that come with the blockchain technology. Its anonymity, speed, and security make it highly attractive to banks for use in their day-to-day transactions. Hence, the design of an in-trial platform for banks who wish to capitalize on blockchain technology.
The blockchain, or distributed ledger technology (DLT), being employed by large companies, however, differs from the bitcoin network. Whereas the bitcoin blockchain is public, the DLT being applied at large organizations is private.
Multinational technology behemoth, IBM, and foreign exchange services firm, CLS, announced the creation of in-trial app store, LedgerConnect, on Monday. This platform is expected to launch in a few months’ time. With LedgerConnect, banks interested in programs based on the blockchain technology can use the platform trial pad.
The proof of concept (PoC) will see banks accessing multiple solutions from a single platform, thus helping them to redirect their efforts from building applications to other business objectives. Financial companies are keen to implement blockchain, but it might be challenging for each entity to develop and run its own DLT system when similar applications are already operational. LedgerConnect hopes to help financial institutions save money and focus on value by offering its single platform that hosts multiple DLT solutions.
Alan Marquard, chief strategy and development officer at CLS, commented on the new platform:
“LedgerConnect is part of CLS’s strategy to explore how we can provide safe and robust solutions that create efficiencies and reduce risk for a diverse range of firms operating in the financial markets. We expect LedgerConnect to deliver enhanced efficiencies and economies of scale over single-purpose distributed ledger networks.”
IBM has been focusing on newer technology like cloud and blockchain to help turn around the company. So far, the strategy appears to be working. The second quarter of 2018 marked IBM’s third consecutive quarter of revenue growth, following five years of year-on-year revenue declines.
Vice president of financial markets of IBM, Keith Bear, commented on the old versus new trend. He said:
The challenge is being able to work together across organizations of different speeds. On one side we have a large highly regulated industry. On the other side we have much more agile and fast-footed fintechs with limited resources. Our role is in some respects of mediating those differences in speed and resources
Also Read: IBM Backs Stellar-Based Stablecoin Project Called “Stronghold USD”