Even as Microsoft Corp looks to speed up use of the distributed database software by enterprises, the U.S. tech giant is working on technology that it believes can make blockchain-based systems faster and more private.
In order to solve some of the issues that have slowed down the adoption of blockchain networks, including speed and privacy concerns, it had developed a system called Coco Framework, which connects to different blockchain networks, the company said on Thursday.
Microsoft said that by 2018, it will make ready and make open sources the system called Coco whose names stands for Confidential Consortium.
Microsoft said that Ethereum can be made roughly 100 times faster as the system is currently compatible with Ethereum, one of the most popular types of blockchains.
“We expect this to be the foundation for blockchain for enterprise,” Mark Russinovich, chief technology officer of Azure, Microsoft’s cloud computing division, said at a press briefing. “We think blockchain is going to potentially transform every industry.”
In the hopes that it can help simplify and reduce the costs of some of their data-heavy processes, large businesses, including many of the world’s biggest banks, have been investing in blockchain.
The technology is a shared public record of data that is maintained by a network of computers on the internet and was first emerged as the system underpinning cryptocurrency bitcoin. That means that access to all of the information could potentially be granted to all of the users that are present on the network.
This makes the technology inadequate for use by big businesses with strict data privacy requirements even though this makes the technology well-suited at ensuring the information’s integrity.
And without making the system slower, controlling of who can see what on a network would be made much easier for firms by the use of the new technology developed by Microsoft.
Even though it hopes that it will lead to more use of its cloud services, initially at least, the company plans to offer Coco for free.
It will be compatible with all types of blockchains and is being built in part with Intel Corp hardware.
Quorum, the blockchain developed by JPMorgan Chase & Co, Intel’s blockchain Sawtooth, and Corda, the blockchain of bank consortium R3 are among those that are the planned adopters of the new system.
Experts and skeptics caution that it is still in its early days and it may take years before its benefits are reaped even while the technology continues to draw interest from large firms.
Around 1,600 transactions per second can be processed by Microsoft’s system. The network of payment card provider Visa can handle up to 24,000 transactions per second by comparison.
(Adapted from Reuters)