Microsoft is aiming to make blockchain its main money-spinner going forward because it’s the technology that cryptocurrencies are based on, and what the banking system is increasingly looking into adopting.
Goldman Sachs, one of the world’s largest investment banks, recently acquired a patent for its own cryptocurrency, setlcoin.
Like bitcoin, the first cryptocurrency, Goldman Sachs’ setlcoin will be based on blockchain computing infrastructure.
Other supermassive banks are probably also looking into launching their own cryptocurrencies, judging by their partnerships.
Microsoft, for example, is partnering with JPMorgan, another banking behemoth, on the tech company’s new blockchain-as-a-service.
Essentially, blockchain requires huge computing resources to generate what are regarded as “digital handshakes” relating to transactions in cryptocurrencies which are recorded in what are called “distributed ledgers”.
Microsoft has one of the largest data centre infrastructures in the world, and the tech giant is utilising its Azure platform for its blockchain-as-a-service offering.
The Microsoft-JPMorgan blockchain platform is called the Enterprise Ethereum Alliance, ethereum being one of the most widely used cryptocurrencies today.
Speaking at an tech industry conference, as reported by Redmond Magazine, Craig Hajduk, a principal program manager for blockchain engineering at Microsoft said banking is a big area of development for the new technology.
Hajduk said: “I would tell you that about 50 percent of the investment right now in blockchain-based applications is going into the financial sector. Not surprising, [since] this technology came from cryptocurrencies, it does value transfer very well.
“On the other hand, retail or manufacturing supply chain is an area where there’s a lot of participating investment. We also see it in healthcare. It’s very important in the public sector as well. So, this is a technology that has broad applicability and has broad interest.
“It’s not really about cryptocurrency – it’s about the shared source of truth and it’s about rethinking, reworking and transforming your business. That, folks, is what drives the excitement about distributed ledger and blockchain technology.”