Recently, Microsoft Corporation has introduced a new BaaS-product (Blockchain as a Service) called Ethereum on Azure. This development will allow a possibility for companies across all industry vertical to use more flexible version of Ethereum, sharpened for a certain field of activity.
With a help of Ethereum on Azure companies will be able to create different applications based on the Ethereum blockchain, which does not work on algorithm of a consensus Proof-of-Work (PoW) and does not need mining. This functionality is designed for networks where the participants do not trust each other. Ethereum on Azure, in turn, operates according to the algorithm Proof-Of-Authority (PoA).
According to Cody Bourne, a developer from the Azure Global company, the PoW algorithm is intended for anonymous and public networks, for the security of which one or another cryptocurrency is responsible. However, this algorithm is useless for use in private networks and consortia, as all the participants are known in advance. Accordingly, management and functioning of the network can be separated from each other.
That is why Ethereum on Azure has an integrated decentralized application called Governance DApp, which allows members of the consortium to manage the network and to transfer their own voting right to others. Network members also have the opportunity to transfer their voting right to other nodes, if the main nodes are temporarily unavailable. Therefore, all members will be guaranteed to participate in building the consensus. Administrators will be able to hold a vote within the network to ensure transparency of the process and transmit network credentials if necessary.
Startup of the blockchains, built on a new model of consesus, including the main PoW-product on the basis of Ethereum, takes less than five minutes. For greater convenience while using the product, Microsoft has implemented in Ethereum on Azure a support of smart contracts that can be created with a set of WebAssembly tools from the Parity company. Developers will be able to create smart contracts using famous programming languages ― C, C++, Rust, etc. In other words, they do not have to learn Solidity, a basic Ethereum programming language.