International Business Machines Corp. (IBM) Partners with Samsung, Reveals Bitcoin Blockchain Concept for Internet of Things

bitcoin blockchain

International Business Machines Corp. (NYSE:IBM) and SAMSUNG ELECT LTD(F)(OTCMKTS:SSNLF) have joined forces to bring more capabilities to the Internet of Things. At the 2015 Consumer Electronics Show in Las Vegas, IBM unveiled a technology known as ADEPT that taps into the design of Bitcoin to build a decentralized connected devices infrastructure.

IBM and Samsung partnered to develop what they call Autonomous Decentralized Peer-to-Peer Telemetry (ADEPT) concept. The technology supports distributed network of devices and promises low cost connectively. The concept also enables autonomous capabilities in connected devices. Using a combination of concepts known as proof-of-stake and proof-of-work, ADEPT ensures secure transactions. ADEPT uses bitcoin’s blockchain as the backbone of the system.

In designing ADEPT, International Business Machines Corp. (NYSE:IBM) and Samsung used three protocols known as BitTorrent, Ethereum and TeleHash. Each of these protocols plays a different role in the design. For instance, BitTorrent is for file sharing, Etheruem supports smart contracts and TeleHash enables peer-to-peer messaging.

ADEPT as a bridge

ADEPT is designed to serve as a bridge for many devices that are able to operate autonomously. Using blockchains, ADEPT would link billions of devices in a peer-to-peer architecture while also ensuring that the connection is low-cost.

Home application

The ADEPT system can be applied in various cases, such as a home to achieve more streamlined and efficient device connectivity in a domestic setting. For example, connected devices in a home could use ADEPT to signal existence of a problem and communicated to a nearby device to have the problem fixed.

The draft paper about ADEPT outlines a case whereby a home washing machine, such as Samsung W9000, uses ADEPT system to order detergents from a supplier and pay for the same by itself. The washing machine would also be able to receive a word from the supplier that the order detergent has been paid and delivered. That information can also be relayed to the smartphone of the homeowner, which is also connected to the home network.

Challenges expected

As ambitious as ADEPT may seem, International Business Machines Corp. (NYSE:IBM) and Samsung, the designers, conceded that they will encounter some challenges in its implementation. Nonetheless, they are betting that their approach to the Internet of Things has a future.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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