IBM CEO Ginny Rometty: Blockchain technology is far more important than artificial intelligence (AI) and deep learning

IBM President and CEO Ginni Rometty believes that blockchain technology is far more important than artificial intelligence (AI) and deep learning.

Speaking at the NASSCOM India Leadership Forum (NILF) earlier this month, an annual event where business and industry leaders come together to discuss the transformative ideas and potential of disruptive technologies, Rometty said blockchain technology will transform the financial industry in the same way that the internet transformed the information industry.

Rometty further emphasized that cognition is much more important than AI because cognitive technologies, such as blockchain, can enable individuals to expand and evaluate data in a more efficient and practical ecosystem.

Essentially, Rometty believes AI enables individuals to make better decisions, while machine learning helps interpret patterns. However, she noted that blockchain and IBM blockchain technology can bring much more to the table.

Rometty said:

“Cognition is much more than AI. If I’m looking at an EKG and looking at blood flow to find a blockage somewhere, I’m seeing more than AI can see. But if you take all your EMRs, images, all the data from Fitbit and so on — all the tests you’ve taken — that’s real cognition because I’m reasoning about the data and dealing with gray areas. I’m making the judgment and the decision.”

Ambiguous and confusing business model

Based on Rometty’s speech at NILF, it is more difficult to analyze the efficiency and practicality of IBM’s blockchain project, especially if you take into account the future prospects Rometty mentioned.

In her speech, Rometty went on to highlight the potential for blockchain technology to be used to manage millions of records and disrupt data-centric industries such as healthcare. However, blockchain technology was not designed and built to move such large data sets.

In fact, technically speaking, blockchain technology is an inefficient data processing platform. The maintenance cost of this platform is high and challenging, specifically because it runs on a complex cryptographic system. Miners must contribute computing power to run a decentralized and immutable blockchain network.

Still, the kind of cognitive technologies Rometty described at NILF are absolutely necessary, as there are many multibillion-dollar industries that are starving for cloud-based data processing platforms, applications and networks.

However, blockchain technology should not become the core technology and basic protocol of such cloud data processing networks. R3CEV, the world's largest blockchain alliance, has already moved away from this technology after admitting that blockchain technology is not what they are trying to obtain.

The immutable and decentralized nature of the Bitcoin blockchain can benefit many use cases and business models. One of these models is to verify identity in an immutable and transparent blockchain network. However, these platforms cannot currently be deployed on the Bitcoin blockchain network. This requires alternative solutions such as sidechains or other methods of connecting the Bitcoin network to off-chain networks.

Rometty said:

"In some countries, healthcare costs are very high. In others, healthcare is not available. Now is a great opportunity to change that. IBM Watson for Healthcare is oversubscribed worldwide. I don't think we will own every area around cognitive. But we have made healthcare an open platform... The next step is to buy data. I think IBM has more data with secondary use rights than anyone except the government - 300 million records. That's the basis for changing an industry."

Looking back at the failed attempts of R3CEV and other blockchain consortiums, it seems as if blockchain should not become a foundational technology, and if IBM intends to successfully commercialize blockchain technology, it should focus on exploring more realistic blockchain use cases.