IBM joins Linux and big banks to create open source blockchain

Tech giant IBM has launched an open-source blockchain with the support of financial institutions including JP Morgan, the London Stock Exchange and Wells Fargo, as well as technology experts such as Cisco and Intel.

     Reports from Wired and Fortune suggest that IBM is leading the creation of the Open Ledger Project, an alternative blockchain system overseen by the Linux Foundation, the nonprofit consortium that also runs the open source operating system.

     The Open Ledger Project is described as a development library that will allow businesses to create custom distributed ledger solutions without relying on open public blockchains such as those provided by Bitcoin and Ethereum.

     In an interview with Fortune magazine, IBM researcher Jerry Cuomo said he sees the open ledger project as an extension of Bitcoin’s functionality, saying:

     “I don’t have a strong opinion on cryptocurrencies, but I do have a strong opinion on blockchain as a solution for contracts and supply chains and the Internet of Things. I think Bitcoin is an interesting application for blockchain, but there are thousands of applications and broader use cases beyond that.”

     IBM is reportedly working to embed “existing code” from its research to date into the distributed ledger space, while Digital Asset, a blockchain startup helmed by former JPMorgan executive Blythe Masters, will “work to put the Hyperledger name for its currency payment protocol” into the branding effort and provide development resources.

     Companies involved in the effort include Accenture, ANZ Bank, CLS, Digital Asset, Fujitsu Ltd., Initiative for CryptoCurrencies and Contracts (IC3), Mitsubishi UFJ Financial Group, State Street, SWIFT, VMware and Wells Fargo.