Microsoft has been making the right moves to capture the growing bitcoin and blockchain technology market. The technology giant today announced that it has entered into a partnership with R3CEV, the company behind the development of blockchain technology for the international banking consortium.
According to a press release, Microsoft and R3CEV have struck a deal to use the former’s Azure cloud platform for implementing blockchain infrastructure being developed for the banking sector. Microsoft’s Azure cloud platform is already well-known for both the quality and security. Thousands of well-established companies, as well as startups, are currently using Microsoft Azure to host their services. Recently, Microsoft included blockchain as a service (BaaS) solutions to its Azure platform, which immediately gained a lot of traction.
The strategic partnership between Microsoft and R3CEV will establish Microsoft as the provider of cloud-based tools, software and other technical infrastructure to R3’s centers across the world. In addition to cloud infrastructure, the company will also provide the required personnel to manage and maintain the Azure services. This will, in turn, allow R3CEV to make use of the best cloud infrastructure and tools out there to conduct research and implement the blockchain network for the banking consortium comprising of over 40 international banks.
Lately, the banking sector has realized the importance of blockchain technology and how it can help the financial institutions improve the quality of service by reducing the time and costs involved in conducting transactions. The idea behind the creation of a private blockchain infrastructure is to create a network of banks and its branches for fund transfer and other regulatory and compliance purposes. By using the blockchain technology, banks will soon be able to transfer funds between branches across the world in no time, compared to conventional ways using SWIFT which takes anywhere between a couple of days to more than a week.
Once the blockchain network is implemented, banks can use it as a cheaper alternative to the existing SWIFT network. This will enable them to save on transaction costs generally charged by SWIFT for fund transfer and pass the same along to customers. The banks and financial institutions also see this as a way to compete with bitcoin, which is gradually gaining popularity. The lesser costs and increased freedom of operation have made bitcoin a very important alternative digital currency for many. It is also seen as the potential alternative for providing financial services to the unbanked and underbanked population across the world.
The use of Microsoft’s Azure services by R3CEV and banking consortium will give then access to the company’s fast-growing blockchain technology offerings which already includes the likes of Ethereum, Ripple, Factom, Alphapoint, LibraTax and more.
In another recent development, the company recently introduced Solidity software development packages for its Visual Studio IDEs. It is good to see a huge mainstream tech juggernaut including blockchain technology support to its long list of packages. in the coming days, we can expect Microsoft to include more products to its BaaS offering to make lives much easier for all the developers out there.
Source: Via Mail Tip