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IBM Secures $740 Mln Deal to Upgrade Australian Gov’t Data Security with Blockchain

IBM Secures $740 Mln Deal to Upgrade Australian Gov’t Data Security with Blockchain

Blockchain integration grows more prolific, as companies, educational institutes, and governments realize its solutions to various inefficiencies. IBM signed an a $1 billion (~$740 million) deal with the Australian government to upgrade data security systems using blockchain technology.

Estimated $100 Mln In Savings Over Five Years

International Business Machines Corp. (IBM) signed a five-year contract to act as central technology partner of the Australian government, Bloomberg reports July 5, 2018.

Through a $740 million deal, IBM will provide technology services – including blockchain, AI, and automation – to the defense and home affairs departments of the Australian government.

In an interview with Bloomberg TV, IBM’s Asia Pacific head Harriet Green told viewers that the new partnership:

“enables citizens across the commonwealth to have access across multiple agencies… to the technology that they need, many of those new technologies across AI, blockchain [with] a lot of focus on security.”

IBM’s partnership emphasizes data security for Australian citizens through the implementation of its proprietary distributed ledger technology, which ensures immutability and improved encryption of information storage and transfer.

The deal intends to further Australia’s goal in achieving a “paperless future” for processes such as taxation and border control.

According to Green, the five-year contract is estimated to provide $100 million in Australian taxpayer savings and propel the nation into the “top three of digital governments in the world.”

Australia Fostering Blockchain Innovation

Following a 2016 series of distributed denial of service attacks to the Australian national census, IBM is making its way back into the government’s good graces with this new partnership.

Reported on May 22, the Australian Digital Transformation Agency (DTA) already allocated a $700,000 budget for blockchain research. More specifically, the report revealed joint projects with Australia’s Commonwealth Bank to find blockchain applications in the financial sector.

According to DTA Chief Digital Officer Peter Alexander, the Australian government sought out blockchain solutions for “settlement of trades, cargo management and even the providence of open data to ensure that it is accurate.”

Cover Photo by Oskars Sylwan on Unsplash

Filed Under: , Adoption, Partnerships, Technology
Jonathan Kim

Jonathan Kim is a University of Washington student of Finance and cryptocurrency investor with a deep interest in the emerging industry of blockchain applications and cryptocurrency trading. His past experiences involve publishing original daily content for blockchain startups and trading cryptocurrencies using technical analysis principles.

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