Diving Into Microsoft’s Blockchain Partnership

Banks aren’t the only ones catching headlines with their support for blockchain technologies. Microsoft made a splash only weeks ago when the computer conglomerate revealed that it struck a partnership with ConsenSys, a firm that incubates and accelerates innovators using blockchain technology.

The tie-in with Microsoft means ConsenSys Enterprise will be able to reach a new population of businesses on Microsoft Azure that want to develop enterprise apps using blockchain tech for the market. Basically, ConsenSys and Microsoft are working together to get businesses on board and familiar with blockchain technology.

As financial institutions invest billions in the tool, and as analysts forecast waves of market adoption of innovations built on the technology, it’s a smart idea for businesses to get acquainted with the technology, too.

But PYMNTS wanted to know more about what the Microsoft-ConsenSys partnership will mean for corporations interested in the blockchain, and how app development can alter the process of B2B payments in an economy edging closer to mainstream blockchain adoption.

[bctt tweet=”What the Microsoft-ConsenSys partnership will mean for firms and the blockchain”]

A Tool Built On Ethereum – Say What?

When the market discusses the blockchain, it can often be a broader term to encompass this ledger technology in general. ConsenSys focuses its efforts on the potential of Ethereum, a blockchain platform built for more than cryptocurrencies.

“We work on Ethereum because we believe this blockchain is the most powerful blockchain in the world,” said ConsenSys Director of Enterprise Business Development Andrew Keys. The platform has already been used to build solutions for crowdfunding, Smart Assets, Smart Contracts and other types of data that need to be transmitted securely.

This, Keys said, has major implications for the way businesses can wield blockchain technology.

To unleash this potential to the market, he explained that Microsoft Azure was working with some of the client bases that ConsenSys was interested in, too.

“I essentially cold-called Microsoft via a cold email,” Keys said. “We had not had previous discussions.”

And just like that, ConsenSys found a new outlet to help businesses develop their own apps using Ethereum. Keys explained that businesses using Azure can access a semi-private developer ecosystem to create and build decentralized apps using a toolkit on the Azure portal. These apps can then be released to the public for other businesses to use, whether they’re on the Azure platform or not.

It’s a process Keys said the companies are calling “Ethereum Blockchain-as-a-Service,” and the companies have mused about its potential for corporate accounting, treasury management, logistics, trading, and far, far more.

“A developer can create a simple accounts payable or accounts receivable Smart Contract to track invoicing and benefit from the immutability and non-reputability of the blockchain,” Keys said. A Smart Contract is a computer protocol that enforces the performance and terms of a contact.

It’s a use case far from the typical bitcoin payment process that first comes to mind for many when bitcoin technology is discussed. Ethereum technology, and the apps built on top of it with the ConsenSys toolkit, can certainly be used to move money between companies. But, as Keys explained, bitcoin need not be involved.

In fact, Keys explained, ConsenSys is looking to get the banks on board with these payment goals, opening up the technology to virtually any currency. “We’re already in talks with bulge-bracket investment banks to help them build an application to use blockchain technology to replace SWIFT technology,” he said.

There is a lot of technicality and industry jargon to these solutions. But by opening up Ethereum-based tools to corporations, businesses will begin to grasp what the blockchain can mean for their place in the global economy.

This shift, Keys said, has already begun.

“We’re seeing technology, accounting, legal, banking, music, energy industries wrap their heads around this technology,” he said, “and once they fully understand it, there will be no turning back.”