IBM is pushing for integration between the Internet of Things (IoT) and blockchain technology. The firm has invested $200 million USD in its Watson IoT headquarters in Munich, Germany, to research and develop the capabilities of these two innovations. The firm also believes 65 percent of major banks will be using distributed ledgers by 2019. The German IoT subsidiary considers blockchain to be a key element to building a distributed network of devices.
The multinational tech giant is racing towards blockchain technology at a fast pace. Recently, the firm created a global Watson IoT headquarters in Munich where it studies and develops IoT protocols. IoT technology will incorporate embedded chips and software in cars, machines, hospital equipment, and household appliances. IBM says it created the German headquarters because of the “escalating demand from customers who are looking to transform their operations using a combination of IoT and Artificial Intelligence.” Distributed ledger technology tethered to IoT can create a more efficient relationship between chips and software, IBM says. The company has already been full steam ahead in research and development for its own blockchain protocol. Additionally, IBM recently tested a smart contract prototype with the Japan-based Mitsubishi UFJ. Harriet Green, Global Head of IBM’s Watson IoT business, said during the announcement: