All in on blockchain, but IBM is criticized by Bitcoin experts

IBM, a giant in the technology sector, has announced plans to adopt blockchain technology and focus on the development of distributed systems.

The hype around blockchain began in 2015, and IBM has been supporting the development of blockchain technology and working with other large companies and financial institutions.

As these institutions continue to pay more attention to blockchain, IBM plans to invest a lot of resources and capital to develop commercial transactions on private chain networks.

The IBM development team believes that compared to traditional databases, blockchain technology has advantages for enterprises in some markets, including securities trading, trade finance, retail banking, and maintenance of public records.

(Pierre Liger, Vice President of IBM Systems, IBM Portfolio Marketing)

Criticism from Bitcoin experts

However, in the currency circle (known as the cryptocurrency community abroad), especially the Bitcoin community, the word "blockchain" has become a buzzword that many currency experts, investors, entrepreneurs, startups and developers are tired of.

Counterparty Foundation community lead Chris DeRose and OB1 CEO Brian Hoffman have criticized IBM after Pierre Liger, vice president of portfolio marketing for IBM Systems, announced positive developments for IBM’s enterprise blockchain network.

DeRose emphasized the real significance of blockchain technology, its practical use as a decentralized network. DeRose said:

“If you think blockchain is great, you should look at databases, which will revolutionize all the buzzwords.”

Brian Hoffman commented:

“You forgot the trademark symbols — Blockchain™, Unique Database™, and Mutability™.”

Essentially, the blockchain hype was created by the world’s leading banks and financial institutions, who aim to mitigate the disruption that Bitcoin is causing to the existing fragile and inefficient banking system by providing an innovative, secure, economical, efficient and decentralized mechanism for cross-border transactions.

The purpose of Bitcoin is to provide a decentralized and secure ecosystem where anyone can trade at any given time and any given place without any boundaries or restrictions. Once the decentralized nature is removed, the so-called blockchain network will become a traditional database, which is maintained by a central authority, making them more vulnerable to security vulnerabilities and hacker attacks.

But since banks and financial institutions have experimented with blockchain technology in a misguided way, IBM’s move into blockchain technology is appropriate from a business perspective.