There has been much speculation regarding Amazon’s stance towards the blockchain and Distributed LEDGER Technology (DLT) in general, and the multinational retail company has recently announced two services that utilize distributed ledgers and blockchain technology. Amazon’s receptiveness to using the blockchain is being met with positivity by most cryptocurrency enthusiasts as it paves the way for future blockchain integration by the retail giant, and may help the sector move closer to mass adoption.
Amazon Quantum Ledger Database and AWSManaged Blockchain
The retailgiant has officially announced the AmazonQuantum Ledger Database (QLDB), its fully managed ledger database that providesa transaction log owned by a central trusted authority. The service utilizes cryptographyin order to ensure that the log is a transparent, immutable, and highly verifiable,and QLDB uses the SHA-256 cryptographic hash function. Amazon state that QLDB tracks everyapplication data change and works to maintain a comprehensive and verifiable recordof changes over time. However, the retailer has also stated that the servicecurrently only provides an append-only, immutable journal that keeps track of allchanges.
Amazon identifiestransparency, scalability, speed, and ease of use as key features of QLDB and alsohighlights that the database can execute two to three times more transactions comparedto current blockchain offerings. The majority of prevailing blockchain systemsuse decentralized networks that require a significant number of network membersto reach consensus on the validity of the transaction. QLDB has a centralizeddesign, which allows it to swiftly execute transactions without the need formulti-party consensus.
HealthdirectAustralia and Smaato have been confirmed as customers and Bruce Haefele, the GeneralManager at Healthdirect Australia, a national, government-owned, not-for-profitorganization has stated “Healthdirect Australia operates in a heavily regulatedindustry, and it is critical that our compliance data is correct and auditable.With Amazon QLDB we look forward to having a complete and verifiable history ofevery change in our system, making it simple to audit when and how we arrivedat our current state”.
Smaato is a leadingonline ad exchange and CEO, Ragnar Kruse has outlined the benefits of using theservice, stating “All participants in the online advertising and real time biddingmarket segments are interested in transparency throughout the entire lifecycleof an online ad auction, from the initial auction, to the winning bid, andultimately through to the final impression delivery and who it’s actually shownto”.
Amazon also expectsthe service to be adopted by operators in Finance, Manufacturing, Insurance,Retail, Supply Chain, and HR and Payroll. In addition to QLDB, the retail gianthas also launched the AWSManaged Blockchain, and the blockchain service supports both Ethereum andHyperledger Fabric and aims to make it easy for enterprises to create andmanage scalable blockchain networks using the two popular open sourceframeworks.
Furthermore,the Amazon Managed Blockchain can replicate an immutable copy of a company’s blockchainnetwork activity into the Amazon Quantum Ledger Database (QLDB), thus allowingusers to easily analyze various aspects of network activity and keep track ofemerging trends. The service is also slated to scale to thousands ofapplications and to allow users to run millions of transactions. It can also beused to manage certificates, invite new members to join the network and track metricssuch as usage of memory and storage resources. Users can navigate the AWSConsole to configure nodes, add members, or to deploy applications.
AWS CEO AndyJassy recently stated “This service is going to make itmuch easier for you to use the two most popular blockchain frameworks. When weheard people saying ‘blockchain,’ we felt like there was their weirdconvoluting and conflating what they really wanted, and as we spent timeworking with customers and figuring out the jobs they were really trying tosolve, this is what we think people are trying to do with blockchain”.
Is an Amazon Digital Currency Next?
Amazon’smove to integrate blockchain technology into its core operations has led somein the space to speculation that the company may be edging closer to incorporatingcryptocurrency payments. This idea began to gain traction when it was revealedthat the company purchased three cryptocurrency domains last year. Amazon acquired AmazonEthereum.com,AmazonCryptocurrency.com, and AmazonCryptocurrencies.com in 2017, sparkingrumours that crypto adoption was imminent, and currently, Bitcoin holders areforced to use an intermediary site like purse.io in order to use their cryptoholdings to make purchases on Amazon.
While the topbrass at Amazon remain tight lipped regarding the possibility of an Amazon coin,any decision to integrate a cryptocurrency payment solution would have amassive impact on the entire space. Amazon saw over $177 Billion in Revenue in2017, and a digital currency could be used to make purchases on the main siteas well as to use Twitch, Audible, and Amazon subsidiaries such as CreateSpace,Whole Foods Market, and Zappos.
The retailer helps to make up the FANG group of high-performing technology stocks and one of Facebook, Amazon, Netflix, or Google choosing to launch a digital currency or to integrate already existing crypto payment options would represent a major step towards mass adoption.
Featured image via BigStock.
