Ah, what a year. Bitcoin, which dipped below the $4,000 mark this week, has lost more than three quarters of its value over the course of 2018. Crypto has had a rough go this lap around the sun. But as the end of the year approaches, the ‘blockchain not bitcoin’ bandwagon is still going strong.
Despite some negative headlines criticizing blockchain’s inability to keep up with or deliver on the hype, blockchain as a service (BaaS) continues to find courtship with leading tech giants.
Amazon Web Services, or AWS, has just announced their own fully managed blockchain service, Amazon Managed Blockchain. They say it “makes it easy to create and manage scalable blockchain networks.” And it could be the push that brings the powerful potential of distributed ledgers to the layperson “with just a few clicks.”
Setting up a blockchain network independently requires a lot of costs, labor, equipment, and expertise. BaaS platforms like Amazon Managed Blockchain cover all those bases for their subscribers, and simply give you the tools to build a distributed ledger for your business.
Amazon’s Not Resting on its Laurels
Despite being a nightmare for working people with hair-raising reports of foul and dangerous working conditions to salt the wounds opened by their low wages, and despite pushing for widespread gentrification in the Bronx with the opening of its “extremely concerning” HQ2, to the outrage of local communities, Amazon is coming off of a killer year. They followed their 2017 possession of Whole Foods with Jeff Bezos’ coronation as the wealthiest anything anywhere ever. And AWS CEO Andy Jassy seems confident that the momentum will keep up.
“We don’t build things for optics,” he said at the re:Invent conference, which AWS hosted in Las Vegas. He says that AWS, which represents 9.8 percent of Amazon’s total revenues, is a $27 billion business growing 46 percent year-on-year. But despite the size of the company, he said “it’s still relatively early days.”
Early because blockchain still hasn’t taken a form that the public can use as freely and easily as, say, the internet. A Cowen report projected widespread blockchain implementation is still 5.9 years away, based on a survey of industry leaders. “We’re still in the early stages of the meat of enterprise and public sector adoption in the US,” Jassy said, adding that he considers other countries to be 12 to 36 months behind.
AWS Joins Microsoft, IBM With BaaS
Amazon Managed Blockchain is built on Ethereum and Hyperledger Fabric. It’s not the first of its kind. IBM also uses Hyperledger Fabric for its BaaS, and Microsoft offers Ethereum-based BaaS on Azure, its cloud service. What is Amazon bringing that these companies aren’t? We don’t really know yet.
But in addition to Amazon Managed Blockchain, AWS introduced the Amazon Quantum Ledger Database, a “fully managed ledger database” that “allows you to easily analyze the network activity outside the network and gain insights into trends.”
The ledger database works in tandem with Amazon Managed Blockchain to document businesses’ blockchain activity. Together, these tools could be the thing to finally kick blockchain into the mainstream.