How will the Microsoft and IBM's blockchain project affect Bitcoin and Ethereum?

[honeysyd]

Recently I found an article (as linked below) that IBM is launching an open source blockchain project (named BaaS) that is similar to Linux. As long as I understand, this could be an alternative to Ethereum and possible threaten the potential of Bitcoin's blockchain as the largest blockchain.

http://www.wired.com/2016/02/ibm-and-microsoft-will-let-you-roll-your-own-blockchain/

The Microsoft's project looks like aiming to provide blockchain services in its cloud, but I do not understand what it is exactly as I am a newbie to blockchain and cryptocurrency.

It would be appreciated if anyone shortly summaries these two projects in plain English and how they will affect BTC and Ethereum. In shallow view, these two projects could have a large negative effect on the price of BTC and Ether.

[Jet Cash]

I think there are two points in your post. I don't think that Bitcoin will stay as the largest blockchain forever ( even if you include side chains). The Phoenix currency will probably have a blockchain, and has the probability of becoming the largest, and will no doubt have a controlled central administration. I suspect that Microsoft and Google will each try to control this, and will use their cloud concepts. I doubt that the IMF or AIIB will allow them to do this.

If Bitcoin can remain on course, it has a bright future as a specialised and trusted currency, with intelligent transfer features.

[SFR10]

Although their going to use it in a slightly different field, no matter how hard they try to improve it, it's not going to be better than the original one. They could tweak it and present it as their own but it's always going to be different in a way that bring more control on their side as opposed to the original idea so I don't think it will affect BTCitcoin in anyway in particular.

[Blind Legs Parker]

Recently I found an article (as linked below) that IBM is launching an open source blockchain project (named BaaS) that is similar to Linux. As long as I understand, this could be an alternative to Ethereum and possible threaten the potential of Bitcoin's blockchain as the largest blockchain.

http://www.wired.com/2016/02/ibm-and-microsoft-will-let-you-roll-your-own-blockchain/

The Microsoft's project looks like aiming to provide blockchain services in its cloud, but I do not understand what it is exactly as I am a newbie to blockchain and cryptocurrency.

It would be appreciated if anyone shortly summaries these two projects in plain English and how they will affect BTC and Ethereum. In shallow view, these two projects could have a large negative effect on the price of BTC and Ether.

Bitcoin is there to stay because it provided several new services before the others did. All these other blockchains, might they be developped by Ethereum, Microsoft or Linux, will all cover different fields of use. Ethereum is there to deal with computer programmer's stuff, to record services brought by programmers, it's all very abstract. Also this blockchain that Microsoft wants to develop will be used to track stocks, bonds or houses. None of them is a threat to bitcoin because both of them operate on different fields of use. Bitcoin operates in the field of currencies, Microsoft in the fields of stocks and Ethereum in the field of computer services. All three can coexist without problems.
Linux wants to develop a blockchain together with JP Morgan, now, and that one is the only one that is aimed directly in the same field as bitcoin's (i.e. currencies). It's the only one going head on with bitcoin. But seriously who wants a blockchain currency backed by banks? It's plain stupid. The winner of this war was decided before the war even broke out. It's bitcoin, definitely. A bank-backed blockchain can still co-exist with bitcoin's, now, don't make me say what I didn't say, but it will remain much smaller, and thus will never be a threat to bitcoin. Actually it might even help it get bigger by bringing more people to know about the blockchain and cryptos.

[honeysyd]

So far, general opinions from the replies are

(1) Bitcoin and Ethereum will not be affected because other projects including those by IBM and Microsoft targets different fields.
(2) Some of other projects are centralised and controlled by financial institutions and government bodies, so Bitcoin will be a winner due to its decentralisation characteristics.

Personally, I believe Bitcoin has more potential as system (i.e., the largest blockchain) than as currency. It is because that using two currencies at the same time in one country sounds unrealistic to me (e.g., a Wall Mart labels the price of pencil with two different currencies and the exchange rate of the two currencies varies over time) and that the money supply should be varied depending on a domestic economic condition (to manage inflation or deflation, for example).

With respect to Bitcoin as system, there are several interesting side-chain projects (e.g., rootstock) which will increase the transaction of Bitcoin when they are successful and adopted by public. Increasing in demand will definitely lead to a higher price. As others replied, IBM and Microsoft would target different fields. However, the eventual goal of the projects would be overlapped with Bitcoin as system and might disturb the increase of Bitcoin and Ether price.

With respect (2), if IBM, Linux or Microsoft provide more efficient and better platform for designing blockchain app or services, I think people would not mind building apps and programs using those platforms, because many people have credit with the aforementioned companies in terms of security and reliability. For this reason, it would not be that Bitcoin will be a winner because of its decentralised characteristic.

More comments and replies are welcome

[Amph]

I think there are two points in your post. I don't think that Bitcoin will stay as the largest blockchain forever ( even if you include side chains). The Phoenix currency will probably have a blockchain, and has the probability of becoming the largest, and will no doubt have a controlled central administration. I suspect that Microsoft and Google will each try to control this, and will use their cloud concepts. I doubt that the IMF or AIIB will allow them to do this.

If Bitcoin can remain on course, it has a bright future as a specialised and trusted currency, with intelligent transfer features.

isn't the phoenix a shit coin wiouth anything to add how it can ever dream to grow as strong as bitcoin?

from my point of view no pure clone will ever match bitcoin, they are all doomed to be the second at best

[Jet Cash]

isn't the phoenix a shit coin wiouth anything to add how it can ever dream to grow as strong as bitcoin?

from my point of view no pure clone will ever match bitcoin, they are all doomed to be the second at best

The phoenix currency may not be an alt coin. It is a name that some people give to the world currency that will rise from the ashes of the collapsed fiat currencies. The way things are going it will probably be controlled by China and Russia through the AIIB.

[European Central Bank]

Let's see what it has to offer before deciding. Ether and bitcoin are here right now. I guess there will be a bunch of competitors but there'll really be no reason for them all to exist.

[tyz]

Emercoin was incorporated to Microsoft Azure, too.

As far I got it, the BaaS (Blockchain as a Service) cloud Azure platform allows to set up a wallet (blockchain) very easily for the participating projects (Emercoin, Ethereum,...). A developer does not need to take care about the wallet and the blockchain (synchronization, wallet updates, ...), as he normally has to do when he builds a blockchain-based project. He could completely focus on app development.

[Koamder]

So the Microsoft and IBM's blockchain project are based on their own private chain and the Ethereum is on the public chain?

[tobacco123]

I guess the biggest difference will be decentralised blockchains versus centralised blockchains; Freedom versus controlled....

[mkc]

As long as Microsoft block gain not interfere Bitcoin block chain, we will be fine.
Microsoft is mot God of Internet, Google is. I will be more worried if Google create something similar.
So far Google has been quiet in this front, which is quite unusual.

[honeysyd]

As long as Microsoft block gain not interfere Bitcoin block chain, we will be fine.
Microsoft is mot God of Internet, Google is. I will be more worried if Google create something similar.
So far Google has been quiet in this front, which is quite unusual.

Yes, Google would be the big threat to Bitcoin and Ethereum. I am afraid that the positions of Bitcoin and Ethereum could be lowered by big companies jumping into this field.

[Koamder]

As long as Microsoft block gain not interfere Bitcoin block chain, we will be fine.
Microsoft is mot God of Internet, Google is. I will be more worried if Google create something similar.
So far Google has been quiet in this front, which is quite unusual.

Yes, Google would be the big threat to Bitcoin and Ethereum. I am afraid that the positions of Bitcoin and Ethereum could be lowered by big companies jumping into this field.

Do you think those companies will create new coins? Will the Microsoft use the IBM coin, vice vesa?