Ethereum price will very likely benefit from Microsoft’s new Plateform. Our article today will cover why.
Some challenges facing Ethereum and Blockchain technology’s adoption in enterprises
The perception right now, and for good reasons, is that the Blockchain Technology and Cryptocurrencies are inaccessible and complicated. For enterprises, the main roadblock is Security and confidentiality. Mark Russinovich, CTO at Microsoft Azure sums it well here:
Existing systems (Blockchain systems) were designed to function—and to achieve consensus—in public scenarios amongst anonymous, untrusted actors with maximum transparency. Because of this, transactions are posted “in the clear” for all to see, every node in the network executes every transaction, and computationally intensive consensus algorithms must be employed. These safeguards, while necessary to ensure the integrity of public blockchain networks, require tradeoffs in terms of key enterprise requirements such as scalability and confidentiality.
The difference we are noticing in 2017 is that more people are talking now about Cryptocurrencies, more companies and even governments are openly expressing interest in testing or even carrying transactions using Blockchain. So far, we consider that the arrival of Ethereum has been a game changer especially with the launch of the Enterprise Ethereum Alliance. The EEA is considered today the largest open source Blockchain initiative.
Another turning point for the Blockchain technology that could lead to a significant impact on Ethereum Price could be the following initiative led by Microsoft in collaboration with Intel.
About Microsoft’s new Coco Plateform
According to Microsoft, the Coco Framework and protocol aims to reduce the complexity required to allow blockchain networks to meet the operational and security needs of enterprises. This is achieved by addressing critical needs for commercial adoption like high-transaction speed, distributed governance and confidentiality.
Providing these capabilities should open up more opportunities for Blockchain adoption across industries such as financial and legal services, supply chain, healthcare among other sectors.
A video with a demo from Microsoft can be found here.
How will this Plateform impact Ethereum Price?
Microsoft’s COCO Plateform aims at making it easier for enterprises to adopt the disruptive Blockchain technology and benefit from its advantages. It is pretty clear that this should drive the rate of adoption up and make Ethereum (the Technology) more accessible because it’s now compatible with existing structures. The more the Technology is used the more Ether is used across the Netwok therefore driving Ethereum price higher.
This is an important step to increasing the adoption of Ethereum for the following reasons:
- When we think about large corporations and financial institutions, moving from one platform to another could take a long time, is costly and comes with risks. A more progressive approach with a tailored product will definitely encourage more usability. That’s what this protocol will help achieve.
- Since Ethereum is already part of the initial Coco Framework implementation, the value of Ether and Ethereum price will benefit from the adoption of COCO.
- A tech giant such as Microsoft is now developing in an Open source environment and commercializing a product designed to integrate for the Blockchain technology and Ethereum in particular. This announcement will very likely impact positively the perception of traditional investors and users towards Ethereum and Blockchain in general.
The following articles cover other initiatives we believe are going to help Ethereum achieve a broader reach: