Microsoft Ditches The Mining In Its New Ethereum Blockchain Product

Microsoft has introduced us with a new Blockchain product that basically works as a Service or BaaS, which helps business in various industries to utilize an instance of Ethereum especially made for enterprises.

Ethereum Proof-of-Authority makes possible for enterprises to create and build applications on the Ethereum blockchain that doesn’t use the Proof-of-Work algorithm which means it doesn’t require for mining. This is extremely important because if an algorithm doesn’t require mining it means that is more efficient and better for networks in which there are hundreds of participants that do not trust each other.

PoW is maybe great for open networks that are anonymous but in private ones, this mechanism combined with ether has no real value. This means that all the participants on the blockchain that one enterprise will use, are known, governance would be separated from the network operation. The Proof-of-Authority algorithm has its own unique built-in dApp called the Governance dApp. This dApp enables its members to have authority over the network or to be free to delegate their power to vote on other participants. They can also delegate other nodes to vote if primary nodes go offline just to make sure that the consensus participation will be maintained.

Blockchains that will use this new consensus algorithm can be set up in right under 5 minutes and enterprises will have a single-click DLT solution. Microsoft also gives support for smart contracts that are built with the Parity WebAssembly toolkit, which is great for developers to write contracts in programming languages such as C, C++ that are already Ethereum’s primary programming languages.