Microsoft has announced the launch of a new algorithm for the Ethereum blockchain on Azure, its cloud computing platform.

The tech giant has introduced a proof-of-authority (PoA) algorithm that unlike Proof-of-Work (PoW), doesn’t require computational power to mine crypto.

Cody Born, Azure software engineer, made the announcement on Tuesday with a blog post.

Born commented on the choice of the new algorithm. He thinks that is more suitable for private chain setups.

He wrote:

“An alternative protocol, Proof-of-Authority, is more suitable for private/consortium 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.”

And he continued:

“In Proof-of-Authority, each consensus node on the network has its own Ethereum identity. In the case that a node goes down, it’s important that the member doesn’t lose consensus participation. Ideally, each member would run redundant consensus nodes to ensure a highly available network presence. To accomplish this, we’ve built an abstraction which allows each consensus participant to delegate multiple nodes to run on their behalf.”

Despite the declaration of Microsoft founder Bill Gates who said in May “I would short bitcoin if I could”, the tech giant seems to be interested in blockchain and cryptocurrencies. Recently the company made a partnership with NYSE owner and Starbucks to launch a crypto market.

Gianmarco Ebeling

Economics student with a passion for high-tech and innovation. Enthusiastic about the blockchain revolution and his potential to improve all aspects of our lives.

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