Microsoft has rolled out a new ethereum consensus mechanism called “proof-of-authority” – a move that removes the traditional cryptocurrency mining process for institutions using its Azure platform to deploy private blockchains.
Called “proof-of-authority,” the new mechanism notably replaces the proof-of-work mining process that is common in public blockchains. However, it is only applicablein a permissioned network scenario – that is, on private or consortium blockchains where only invited parties may participate as nodes, Azure software engineer Cody Born wrote in a post on Tuesday.
The launch of the new mechanism allows institutional clients to verify transactions more efficiently and maintains high levels of security, Born said, although “the underlying ether has no value.”
He explained:
“An alternative protocol, Proof-of-Authority, is more suitable for permissioned networks where all consensus participants are known and reputable. Without the need for mining, Proof-of-Authority is more efficient while still retaining Byzantine fault tolerance.”
Proof-of-authority consensus essentially requires the presence of invited parties as a proof of their participation in the decentralized network.
To that effort, the post said the new mechanism allows “each consensus participant to delegate multiple nodes to run on their behalf.” The goal being to ensure that even if one node goes down, there will be enough nodes representing a consensus authority for it to maintain its presence on the network.
The work follows Microsoft’s May launch of the Azure Blockchain Workbench – a tool designed to streamline the process for enterprises building decentralized applications on the cloud computing platform.
Microsoft image via Shutterstock
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Source: CoinDesk.com
