Software giant Microsoft is developing a new way to ensure newly created cryptocurrency tokens are easy to audit and much harder to fabricate.
Microsoft Brings Azure to the Table
Known as Azure Blockchain Tokens, the platform has been utilized by several video game companies to create tokens that players can earn through gameplay. Now, Microsoft is taking the system to new heights and spreading its services to companies like General Electric, which is now among the first major conglomerates working to build their own digital currencies.
Azure operates via the Ethereum blockchain, which to this day, remains the most popular network for creating new decentralized apps and crypto tokens thanks, to its capabilities with smart contracts. Unfortunately, this could lead to problems down the line as Ethereum – according to co-founder Vitalik Buterin – is not very scalable thanks to the traffic that already congests the network greatly.
In a recent interview, Buterin explained that Ethereum is terribly congested thanks to the constant applications and new coins that are always being added to its system. This has resulted in several problems including high gas fees, along with very slow transaction times. Perhaps the switch to Ethereum 2.0 will arrive just in time and make things easier for every client of Azure.
Microsoft principal architect Marley Gray compared Azure’s capabilities with those of Amazon, which he says can deliver new products in mere minutes. He states:
We’re bringing the kind of efficiency you see in Amazon Fresh and Amazon Now everywhere… because you’re closing the gap between parties collaborating together and working through business processes that will make everything from delivery services and getting meetings and appointments much easier and automatable.
It appears we’re entering an era where virtually every enterprise is seeking to create its own coin of sorts. Perhaps the biggest example arrives in the form of Facebook’s Libra, which was announced last June to rather lackluster reception. Facebook claims that Libra will be a global cryptocurrency that can be utilized to purchase goods and services all over the world.
Trust Needs to Be First
Sadly, Facebook is lacking greatly in the trust department following years of scandal including the 2018 stint with Cambridge Analytica. A new survey even suggests that less than three percent of Facebook users would ever consider using Libra in the future, while the U.S. Congress has made it clear that they have more than a few questions regarding the coin’s properties and ethics.
In addition, several other countries – i.e. China – have now claimed that they are looking into creating their own digital currencies as a means of surveilling digital transactions and better understanding residents’ monetary habits. Turkey is also in the process of potentially establishing its own digital currency to sideline the effects of present sanctions imposed by the U.S.