IBM is working on contract signing software via blockchain technology

IBM is working on open source software that allows companies to conclude contracts by means of a blockchain. In theory, this would speed up the speed at which companies can make formal agreements with each other and thus do business.

A blockchain is a virtual ledger in which all kinds of transactions can be kept. The concept is best known from the well-known bitcoin system, in which the blockchain checks whether a transaction is legitimate by means of the so-called blocks. This is done, among other things, by miners, participants in the bitcoin network who are rewarded with bitcoins for their controlling function.

Although a blockchain is best known for the bitcoin system, the concept can also be used in other applications. And that’s exactly what IBM appears to be planning, according to The Wall Street Journal, based on statements by the senior vice president of IBM Research.

‘Big Blue’ is working on open source software that allows companies to conclude a contract by means of a blockchain. The concept is highly experimental and it is therefore uncertain whether any companies will apply this concept in the near future. Nevertheless, there are some advantages; in this way, companies and banks can use exactly the same system for overseeing transactions. In addition, the decentralized design of a blockchain means that fewer ‘hands’ are involved, which can speed up processes.

IBM plans to release the open source software in the coming months, but an exact date has not yet been announced. It is also not yet clear whether anyone will use the software. But if that happens, the American tech giant hopes, then the social impact could be enormous in the long term. Besides IBM, more companies are working on a blockchain concept for accelerating business processes, including Overstock.com and Symbiont.io.