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Perhaps the leading company in blockchain-related developments in the world right now is IBM. The tech giant is estimated to be the biggest blockchain spender and is also in the top-2 companies with the most blockchain patents filed. Now, IBM can be proud of another blockchain achievement: a blockchain-based payment system for major financial institutions.
“IBM Blockchain World Wire” was in beta testing for a while, but IBM decided that it’s already ripe to be released as a finalized product. BWW essentially cuts the mediators in bank-to-bank business transactions, and thus reduces significantly the costs of current conventional systems, and also adds full transparency.
IBM elaborates more about its new blockchain payment system with the following description and sketch:
With IBM Blockchain World Wire, clearing and settlement with finality happens in near real-time. The solution uses digital assets to settle transactions — serving as an agreed-upon store of value exchanged between parties — as well as integrating payment instruction messages. It all means funds can now be transferred at a fraction of the cost and time of traditional correspondent banking.
BWW wields the blockchain capabilities of the Stellar Network, which was set from the get-go to “develop the world’s new financial system.” Accordingly, IBM and Stellar have already begun to collaborate a while back in October 2017 in a partnership that was befittingly designated “to develop a blockchain-based cross-border payments solution proven to significantly reduce transaction costs and increase transaction speeds.” It certainly looks like IBM Blockchain World Wire falls right into that precise definition.
It is not really surprising to understand why IBM invests so heavily in blockchain developments when considering that the company maintains more than 60% of the global transactional systems, that virtually all of the largest banks worldwide are part of IBM’s clientele, and that IBM mainframes are responsible for processing 90% of all credit card transactions in the world, while blockchain developments are estimated to save billions of dollars each year for banks.
IBM, therefore, has a colossal self-interest in becoming a leading blockchain-focused company – and so far, it is doing exactly that.