Amazon Dives Into The Industry By Exploring Enterprise Blockchain Technology


Blockchain Technology: Amazon Dives Into The Industry By Exploring Enterprise Blockchain Technology – Amazon Blockchain 
The e-commerce cloud computing arm of Amazon, Amazon Web Services, has taken an interest in blockchain technology. During the re:Invent event it hosted in November, the company announced that it is creating a platform that will allow its clients build cloud-based blockchains. Ethereum or Hyperledger Fabric can serve as templates for those interested. This announcement by Amazon is just one of the many steps the company has taken into the blockchain industry. 


Amazon Web Services And Blockchain Technology 


Before now, Amazon Web Services announced that it has entered into partnership with big players in the industry like ConsenSys-tied Kaleido and bank-backed R3. While the company has displayed interest in the industry, it hasn’t claimed that all its clients will enjoy the benefits of the blockchain. The general manager for big data at AWS, Rahul Pathak, said that the company had some conversations about blockchain technology with its customers. 

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The conclusion of the discussion was that blockchain technology isn’t the solution to all the challenges that clients might face. However, it can be used to solve some specific problems that clients encounter from time to time. In his words:“Imagine a situation where a manufacturer wants all partners to inscribe something on the ledger regarding trading items that are on the network. In such a situation, blockchain technology will make things complicated for no reason. This is because you will not need the consensus elements or distributed trust in this situation.”

During the Amazon conference, there was another cloud offering for the Amazon Quantum Ledger Database. The company claims that this offering will be used to build databases that are cryptographically protected. Customers will prefer this solution to anyone one that can be provided by the blockchain according to the survey Amazon conducted. He continued:
“While some customers liked the idea of an immutable ledger, some preferred centralized trust. This is why we have the QLDB. Some others wanted an immutable ledger with decentralized trust. This is where the Amazon Managed Blockchain comes into play.”

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Blockchain Ledger Selections 


Some at the top rank of AWS don’t believe in the concept of a distributed database while some others simply have no interest in blockchain technology. The CEO of AWS, during his speech said that there aren’t many applications of blockchain technology in production. According to him, many of the challenges they face will not be solved by a distributed database. He doesn’t believe that blockchain technology is needed for most of the touted use cases that already exist. Even at this, clients of the company are exploring blockchain technology. 

The early participants of the program will only have a Hyperledger Fabric preview available. The Ethereum preview will be available in the next few months. Keep in mind that this interest isn’t new. The product by Amazon Web Services is part of the products that were released in an ongoing experiment with blockchain systems that AWS started in 2015. The experiment has involved developing private blockchains using Hyperledger and Ethereum as prototypes. 

Amazon is the dominant provider of cloud computing services. It controls about 41.5% of the market. So, the enterprise blockchain product by the company is going to be a strong competition to existing products. It is also going to aid in the mass adoption of blockchain technology.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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