Microsoft Corporation (NASDAQ:MSFT) Eliminates The Need To Mine Ethereum Through Its Ethereum Blockchain

0
108
Ethereum Blockchain

Microsoft Corporation (NASDAQ:MSFT) has recently introduced a blockchain based Ethereum (ETH) product which has the potential to eliminate the need for mining ETH. The tech giant?s new Ethereum blockchain protocol has been well received by numerous businesses in various industries.

Following the Proof of Work (PoW) arithmetic on the company?s cloud system Azure, Microsoft has gone ahead to launch a Proof of Authority (PoA) algorithm which is also based on the Azure Ethereum blockchain.

Adopting the blockchain technology

It is evident that the tech giant has been warming up to the blockchain industry. Being among the largest computing and technology firms worldwide, it is expected of them to develop blockchain based projects.

Nevertheless, the company has stood up to the expectations. It went on to set up the Azure Blockchain. The project was built to make the creation of blockchain based products and services much easier.

Most recently the tech firm has introduced Ethereum on Azure. The new project allows more businesses and enterprises to make more use of the Ethereum blockchain technology. Microsoft announced on August 7, that it has added the PoA protocol on its Azure Ethereum ecosystem.

Need for mining eliminated

Unlike Proof of Work, Proof of Authority has done away with the need for security. As a result, PoA negates the need for mining Ethereum to access the tokens. This is because all those contributing to the consensus are known and trusted. ?PoW works great in anonymous, open networks where cryptocurrency promotes security on the network. However, in private/consortium networks the underlying ether has no value,? said the Azure Global Software Engineer, Cody Born.

In PoA, an ETH identity is allocated to every consensus node. Thus, if a specific node disappears a member will still retain participation in the consensus. Since every member has an identified node, the system is designed to make sure that no two nodes will carry a similar identity.

LEAVE A REPLY

Please enter your comment!
Please enter your name here