Microsoft joins blockchain trade association

The Association for Digital Commerce has gained a new big-name backer in its effort to bring blockchain technology to Wall Street.

Blockchain is not only making waves in the financial technology (FinTech) sector, but it is also sparking the interest of IT giants in the development prospects of this hot industry.

Blockchain is best known as the underlying technology for cryptocurrencies like Bitcoin, which creates tamper-proof distributed ledgers. High-tech entrepreneurs, e-commerce companies and even some major banks are using blockchain technology. They hope to use it to create a new generation of financial transactions and trade platforms, making the circulation of money safer and faster, and in most cases, directly bypassing middlemen. Under the right conditions, blockchain can also help create smart contracts, bypassing a series of unnecessary programmatic actions.

The high-tech giant announced on May 4 that it has officially joined the Association for Digital Commerce, a trade organization dedicated to promoting the use of blockchain and digital asset technologies.

The Digital Trade Association's website states:

Through education, advocacy and close collaboration with policymakers, regulators and industry, our goal is to create an increasingly competitive environment that stimulates innovation, jobs and investment opportunities.

The association’s members include LedgerX, USAA and early bitcoin advocate Overstock.

Joining the trade association signals Microsoft's commitment to making blockchain mainstream in finance and beyond.

Marley Gray, director of business development and strategy for Microsoft’s Cloud Enterprise Division, said in a speech:

The Digital Trade Association plays a vital role in rule-making. It brings together the most advanced companies in various fields to share their experiences and strategies. In the spirit of safeguarding the public interest, the Digital Trade Association also provides opinions on the ledger technology and its creation and development.

IBM has also set a goal to create a secure blockchain ecosystem, protect transactions and funds, and avoid fraud.

Recently, IBM released a new security architecture for running blockchain networks. IBM's cloud services can be used to create a regulated blockchain environment that is compliant and facilitates forensics of log data.

At its PartnerWorld Leadership conference in February, IBM unveiled a raft of new recommendations and consulting services to accelerate the adoption of secure blockchain technology among businesses.

Gray noted that Microsoft also announced several new partners have joined its Azure cloud blockchain-as-a-service (Baas) platform. These partners include Bitswift, Blitz, Blocknet, Gamecredits, Jambucks, OKcash, Shadow, Storj and Vcash.

Microsoft and IBM are not the only two major cloud providers to have their sights set on the burgeoning blockchain market.

On May 1, Amazon (AWS) and Digital Currency Group (DCG), an investment company dedicated to blockchain, announced a new partnership. Their cooperation will provide enterprises with Digital Currency Group's blockchain technology entrepreneurial resources and Amazon's cloud services and technical resources.

Scott Mullins, Amazon’s head of global financial services business development, said:

Distributed ledger technology is at the forefront of innovation in today’s financial services industry, and Amazon is working with financial organizations and blockchain providers to spur innovation and facilitate frictionless experimentation.