Is Ethereum About To Unseat Amazon Cloud?

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.

Comments

Raffie tmosley Sun, 08/13/2017 - 14:57 Permalink

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...

In reply to by tmosley

maxblockm tmosley Mon, 08/14/2017 - 01:08 Permalink

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?

In reply to by tmosley

thevekja Sun, 08/13/2017 - 14:06 Permalink

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

BarkingCat logicalman Sun, 08/13/2017 - 20:26 Permalink

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. 

In reply to by logicalman

BarkingCat BlindMonkey Sun, 08/13/2017 - 20:33 Permalink

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. 

In reply to by BlindMonkey

The Cooler King (not verified) Badsamm Sun, 08/13/2017 - 14:40 Permalink

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?

In reply to by Badsamm

tmosley Jaspergers Sun, 08/13/2017 - 17:25 Permalink

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.

In reply to by Jaspergers

AustrianJim Sun, 08/13/2017 - 14:11 Permalink

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 AustrianJim Sun, 08/13/2017 - 15:52 Permalink

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.

In reply to by AustrianJim

gunzeon Sun, 08/13/2017 - 14:11 Permalink

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 ...

Synoia Sun, 08/13/2017 - 14:14 Permalink

"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 Sun, 08/13/2017 - 14:15 Permalink

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.