Is Ethereum About To Unseat Amazon Cloud?

Tyler Durden's picture

Ethereum investors have been eagerly awaiting more news about the Enterprise Ethereum Alliance, the enterprise platform that’s supposed to transform Ethereum into the Amazon Web Services (AWS) of the future. The announcement of the co-venture between several of the largest US tech companies coincided with the beginning of a massive runup in the value of Ethereum. Some have speculated that enabling the Ethereum network to process a million transactions a second could potentially boost the value of ether tokens past $2,000 a coin. They’re currently trading at $290.

In an announcement earlier this week, Microsoft, a key partner in the alliance, has released the Confidential Consortium (Coco) Framework, an Ethereum-based protocol that could revolutionize how companies use the Ethereum protocol for business applications.

The CoCo Framework improves scalability – or the network’s ability to process a high volume of transactions – while also improving privacy features that are also important to businesses. It accomplishes this by creating what’s called an “off-chain” structure for running distributed applications, according to CoinTelegraph.

These “off-chain” structures, also known as “sidechains,” are crucial to allowing the Ethereum network to someday process millions of transactions a second. Here’s Mark Russinovich, the CTO of Microsoft Azure, who explains in his press release how the CoCo Framework will help customers build effective Ethereum-based applications.

“As enterprises look to apply blockchain technology to meet their business needs, they’ve come to realize that many existing blockchain protocols fail to meet key enterprise requirements such as performance, confidentiality, governance, and required processing power. This is because existing systems were designed to function—and to achieve consensus—in public scenarios amongst anonymous, untrusted actors with maximum transparency. Because of this, transactions are posted “in the clear” for all to see, every node in the network executes every transaction, and computationally intensive consensus algorithms must be employed. These safeguards, while necessary to ensure the integrity of public blockchain networks, require tradeoffs in terms of key enterprise requirements such as scalability and confidentiality.

 

Efforts to adapt existing public blockchain protocols or to create new ones to meet these needs have generally traded one required enterprise attribute for another, such as improved confidentiality at the cost of greater complexity or lower performance.”

In summary, public digital-currency blockchains prioritize transparency over other features because they function in a “trustless” environment where two anonymous parties are exchanging cryptocurrency. In a business setting, this need for publicly broadcasting every transaction disappears.

As Microsoft explains, CoCo is compatible with all rival enterprise blockchain solutions like R3 and Hyperledger, and J.P. Morgan Chase & Co. is busy integrating it into R3, while Microsoft integrates it into Ethereum.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mr. Universe's picture

It's getting close to the time where it's better to be completely unplugged.

bwh1214's picture

This video is in response to Chris Duane's challenge to the crypto community. It includes a wager that the Silver Shield has not and likely will not accept, so much for having courage of ones conviction.

http://www.themonetaryreset.com/2017/08/duane-challenge-accepted-and-wag...

SixIsNinE's picture

ethereum protocol does look quite the game changer:

https://youtu.be/FUcFF5-EJ0A Ethereum, New Governance

Raffie's picture

Silver Shield ROFL.. Chris is a pure crypto hater and loves to put Wicca Symbols on his coins.

If he wants to limit his business by ignorance is up to him. Bix Weir already tore him apart in a video where Chris was raging hate in cryptos with lies.

aloha_snakbar's picture

Yup... something wicked this way comes...it will start with stupid ideas like Bitcoin, and end in tears...

bwh1214's picture

Ether is more useful but as we see with gold and silver utility doesn't necessarily make better money.

tmosley's picture

Yes, delicious oldbug tears.

Don't you old fucks buy any now! You know that EMP is coming ANY SECOND!!

Raffie's picture

Any sec now........ *50 years later* they will still be yammering ANY SEC NOW, THEN WE WILL LOL AT YOU..

Far be it that we should mention would have to be a global EMP. Even then some electronics would be EMP hardened.

A world without power is not a world ANY will want to live in, oh ya not live but 'survive' in.

They really need to be very careful what they wish for.

The sad part is the cryptos could be stable and working better then ever, BUT the haters will find something NEW to get all salty about because they live to cry and march around EYES WIDE SHUT...

Squid-puppets a-go-go's picture

er, like, whats so outrageous about a little diversity? Some gold, some silver, some bitcoin, some 2nd tier crypto. Whatever level of collapse happens, you'll benefit one way or the other

maxblockm's picture

LOL Tmos!  Yep, any second.  

 

Also, anyone considering the EMP angle, keep in mind EMPs are local effect, and crypto currencies are stored on a distributed ledger, not locally. That means that if you get EMP'ed, then bug out to a different country, your cryptos will be intact. I wonder, if one has an account at Bank of America, say, and the US gets EMP'ed, would your funds still be available in other countries?

Screwtape III's picture

The last company I worked for was on Amazon Workspaces.  We migrated our apps back to the local network and productivity skyrocketed.

thevekja's picture

LOL... the whole 'smart contracts' debacle and subsequent hack shows just how little actual creators of the Ethereum platform understand their own system architecture.

The idea that they could unseat AWS is laughable

Eager Beaver's picture

Putting Microsoft in charge of your security is like putting a whore in charge of your chastity.

Eager Beaver's picture

A down vote? Really? Were you a whore, or a Microsoft employee? Is there a difference?

logicalman's picture

Microsoft will make something that doesn't suck the day they start making vacuum cleaners!

Screwtape III's picture

Comments like this is why I read ZH. +100

BarkingCat's picture

If Microsoft made cars every few years you would find some shocking changes.

 

Announcing! !!! New for 2018 the Microsoft Wheels 5 !!!

 

Inside you will find that the steering wheel is gone.  It has been replaced by 2 momentum pedals that serve as a steering and acceleration controls. There is no ignition key or switch anymore. That is now an icon on the 10 inch control panel.

The control panel also has icons for other commonly used features, including windshield wipers, climate control and lights. 

There is one physical/mechanical button on the control panel. It is labeled ACD.

According to Microsoft literature, it stands for Active Control Diagnostic. The driver can press this button in case of a malfunction. 

However, it is common knowledge that the letters ACD stand for Alt-Ctrl-Delete and simply reboot the system when it crashes. 

WhosJohnGalt's picture

Said every future BTC bagholder about ETH. /derrrpppp!!

BlindMonkey's picture

100% on point.  There is nothing in the article to backup the headline related to the displacement of AWS.  

 

BarkingCat's picture

I can tell you that at least one Federal government agency which is a user of AWS is moving to Azure.

There maybe many more.

There is nothing special about AWS. It is a remotely hosted virtual environment running on Linux and kept together with duct tape and wire.

My previous employer hired a couple of Amazon people (software and network people).

They did not say very much about Amazon, except that it as stressful as hell and they have lots of systems that are not really integrated with each other and require a lot of effort to keep functioning. 

JiminyCrickets's picture

Yes, seems AWS is 'old school' cloud.

BlindMonkey's picture

That is no surprise to me at all.  This is my industry and I've a bit of knowledge about the warts involved.  

The Cooler King's picture

What is it exactly, that "you got".

 

It's a simple question.

 

I mean, let me offer some 'framework' here.

 

I "got"

 

- Lot's of 5 gallon paint bucket from Home Depot in the basement

- In one of them, I have a 10 pound bag of basmati rice (which, I scooped 2 cups out of today and made some Persian Rice, HERE'S THE METHOD FOR ANYONE OUT THERE WHO ENJOYS FLUFFY RICE, so now YOU GOT too, which I'll eat for dinner along with some grilled zucchini, & whereby the zucchini, which I grew out back, and which is pretty abundant as we speak, came, basically from nothing because it's 5th generation from a seed packet that I bought more than 10 years ago for 79 cents), & which is watered from rainfall collected in 55 gallon containers from my roof.

- next summer I'll be able to do the exact same (with ZERO further expenditures)

 

So what is it, again, that YOU GOT?

Obsidian Samctum's picture

You honestly cannot extrapolate what it is that he has? Or are you just trying to be clever, which you are clearly not.

Anarchyteez's picture

A crypto wallet with rapidly multipling fiat fed notes.

Badsamm's picture

I only measure penises on Tuesdays

political_proxy's picture

Not me, but someone knows where you live...moron.
Way to advertise.

24Richie's picture

The ethereum transaction technology can happen without ethereum as its currency.

CJgipper's picture

while technically true, the coinage is what enables the large/fast blockchain because of the number of miners running it and their geographic disparity.

tmosley's picture

EOS PROMISES to be better. The Ethereum token that TRADES as EOS may actually not be good for anything, according to the whims of the devs. The coin they are going to develop using funds from the ICO will have its own blockchain, and won't interact with the ethereum blockchain, leaving the current token holders high and dry.

That's why I sold all mine. Might consider buying some after they produce a product.

AustrianJim's picture

Nothing will stop AWS from incorporating blockchain technology into their own platform, if they deem it useful. They don't need Ethereum, either. For that matter, neither does MS.

 

 

dasein211's picture

Dear Amazon,
Your private keys have been compromised. Please send 1000 bitcoin to my address at udontunderstandblockcahindecentralizedledgering. Have a nice day

Signed,

Hackers that understand if you want to make your own central chain system and hold the only keys this is the risk.

See how that works. Blockchain has to be decentralized for proper secure function.

gunzeon's picture

This "story" must have saved Ethereum's bacon; instead of only an 11% drop against bitcoin, in the last 24hrs, it woiuld have sunk musc more ?

Or, has another ETH pump just begun ? Quck ! let me buy some ! Where's my computer ...

williambanzai7's picture

Is this an infomercial, a mission statement or a manifesto? I sure hope someone remembers to Check the batteries.

css1971's picture

Is Ethereum About To Unseat Amazon Cloud?

No.

And the question demonstrates a deep ignorance of tech.

dasein211's picture

So you're saying Amazon storing your personal photos and videos, your music and book preferences and your shopping habits is better than a secure blockchain where you control your information? Have I got a government for you!!!!

Synoia's picture

"because they function in a “trustless” environment"

Oh, our banking envionment is so trustworthy, no LIBOR scandel, Bare Sters bankruptcy, Wells Fargo driving over its customers, to mention just a few.

Why do these people watv to execute in private?  What do they have to hide?

How much of the "privacy" will be open to Gevernment?

gunzeon's picture

Silly me; "announcement earlier this week," explains the slight pump in the last few days. But now, the hopium has worn off and we have resumed our downward slide.

ebworthen's picture

Ethereum, or "Ether" + "eum", is the perfect name for this sort of thing.

Not Eternemun, or Secureeum, or Infineum.  Nope.

tmosley's picture

Helps to keep the idiots out.

malek's picture

Hmm, if there ever was an entirely self-defeating argumentation...

tmosley's picture

...it would probably come in the form of a complete sentance (at least).