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00:00WHAT IS IT AND WHAT DOES IT MEAN FOR YOUR BUSINESS? WE DISCUSSED THAT WITH THE SENIOR VP OF IBM BUSINESS, ARVIND KRISHNA. A GREAT NEW PRODUCT YOU HAVE UNVEILED. IBM BLOCKCHAIN. WHAT ACTUALLY DOES IT DO? >> THE BLOCKCHAIN IS ONE OF THE MOST FUNDAMENTAL TECHNOLOGIES SINCE THE EARLY INTERNET. IT WILL CHANGE TRANSACTIONS. WHAT THE INTERNET DID FOR INFORMATION BLOCKCHAIN WILL DO FOR TRANSACTIONS. HOW IS IT GOING TO DO THAT? IT IS THE FIRST TIME WE CAN HAVE PROPER TRANSACTIONS WITH MULTIPLE PARTIES. CAROLINE: SO, IMMEDIATELY I THINK THE KEY PART OF THIS WOULD BE THE BANKS. ? BUT IS IT ACROSS INDUSTRY? >> MANY. CROSS -- SHIPPING CONTAINERS, HEALTH CARE, IN TERMS OF TRANSPORTATION, HEALTH CARE, IT CAN GO TO FOOD, LIKE COMPANIES LIKE WALMART DOING FOOD SAFETY. OF COURSE, FINANCIALS. CAPITAL MARKET, SETTLEMENTS, EQUITY CHANGES. I BELIEVE BLOCKCHAIN WILL CHANGE THE PHYSICAL WORLD, NOT JUST THE WORLD OF MONEY. CAROLINE: IS THIS ALREADY BEING SOLD TO CLIENTS? HOW MUCH DO YOU THINK THIS WILL DRIVE REVENUE FOR IBM? IS THERE A COMPETITOR? >> IT WILL DRIVE REVENUE. IF I GIVE YOU THE NUMBER OF CLIENTS WE ARE WORKING WITH, OVER 400. WE HAVE HUNDREDS INSIDE IBM WORKING ON IT. THAT GIVES YOU A SENSE OF THE EXCITEMENT OF THE OPPORTUNITY AS WELL AS THE INVESTMENT BEHIND IT. CAROLINE: INVESTMENT IS STRONG IN IBM RESEARCH, DO YOU FEEL THERE'S ENOUGH GOING IN? >> ABSOLUTELY. NOT JUST ON BLOCKCHAIN, BUT ACROSS THE BOARD. IBM IS A FOUNTAIN OF INNOVATION FOR THE COMPANY. WE HAVE AI, THE WATSON PLATFORM, BLOCKCHAIN, THE LATEST ANNOUNCEMENT OF QUANTUM COMPUTING. CAROLINE: TELL ME, THE HEALTH CARE COMPANIES, TRANSPORTATION, THE BANKS -- WHO IS KNOCKING ON YOUR DOOR IS A DEVELOPERS? --IS IT DEVELOPERS OR CTO'S? >> IT IS OPEN SOURCE, WITH DEVELOPERS AND CTO'S. IT IS GROUND UP. BUT IT IS OFTEN THE CEO WHO GETS INTO THE CONVERSATION.THE CEO DRIVES IT WHICH ITH MUCH GREATER AWARENESS TO THE BENEFITS OF THEIR BUSINESS.THEY LOOK AT IT AND THINK HOW MANY BENEFITS CAN I HAVE? WHEN YOU THINK OF HOW BIG THE NUMBER IS IN THE SUPPLY CHAIN AND THE REWARD BACK INTO THE REAL WORLD, THIS IS GOING TO TRANSFORM THE WAY THESE THINGS WORK. CAROLINE: I FEEL IN 2017 EVERY OTHER WEEK WE ARE TALKING ABOUT THE RECORD HIGH OR SUDDEN PLUMMET IN BITCOIN, NOT TO MENTION THE CRYPTO CURRENCY'S HOW MUCH IS THE VOLATILITY IN CURRENCIES SOMETIMES GETTING BLURRED INTO CONCERNS ABOUT BLOCKCHAIN? >> THAT'S A GREAT QUESTION. THESE ARE SEPARATE UNIVERSES. THERE'S A WORLD OF CYBER CURRENCY. THAT'S ONE SIDE. THEY HAD VALUE, BUT THAT'S NOT WHAT WE TALK ABOUT. THERE IS ENTERPRISE BLOCKCHAIN MEANT FOR BUSINESS. THESE DO NOT DEPEND ON A NONENTITY. -- A NONENTITY -- ANONYMOITY. CAROLINE: HOW QUICKLY DO YOU THINK YOU'LL HAVE PEOPLE COPYING WHAT YOU ARE DOING? THIS IS YOUR FIRST INTEREST -- ENTRANCE INTO SUPPLYING WITH LUCK CHAIN? -- BLOCKCHAIN?

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Why IBM Is Investing in Blockchain Technology

Arvind Krishna, IBM senior VP of hybrid cloud, sits down with Bloomberg's Caroline Hyde at IBM InterConnect 2017 to discuss IBM's new blockchain service. (Source: Bloomberg)

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