Amazon Unleashes New Blockchain Services

AWS, one of the most-used cloud services, offers enterprise-grade turnkey solutions for running a blockchain.

Amazon Web Services has expanded its portfolio of blockchain-related services, the company announced on Tuesday, November 28. The service will offer an enterprise-grade managed blockchain, which “makes it easy to create and manage scalable blockchain networks using the popular open source frameworks Hyperledger Fabric and Ethereum.”

“Amazon Managed Blockchain is a fully managed service that allows you to set up and manage a scalable blockchain network with just a few clicks. Amazon Managed Blockchain eliminates the overhead required to create the network, and automatically scales to meet the demands of thousands of applications running millions of transactions,” Amazon explained.

Additionally, Amazon also offers a service named Amazon Quantum Ledger Database, which is a version of AWS’s internal database. AQLD is a service that offers immutability for enterprises that need a centralized, secure and tamper-proof ledger, but not necessarily a blockchain.

Amazon’s cloud storage and to some degree other computational resources have been used on an ad-hoc basis for various crypto projects, including Bitcoin. Since running nodes is resource-intensive, nodes for several projects have used AWS. Critics see this as a form of centralization.

A curated blockchain service based on the Amazon infrastructure also means easier communication within the managed blockchain. A public blockchain will usually have an unpredictable array of nodes, with some communication problems between them and the potential for attacks. However, a system of multiple nodes also means robust decentralization.

Despite Amazon’s move, recent analysis by Kaspersky Labs sees the appeal for blockchain usage in business as diminishing in 2019. During peak Bitcoin times, businesses attempting to use blockchain gained immediate interest, but later, it turned out a blockchain record may not be necessary to business processes.

The Amazon service also promises thousands of transactions per second - a possibility that is easily available to projects that use a relatively centralized blockchain. The slowness of decentralized blockchains with geographically distributed nodes comes from the need to reach nodes on many computers. The disadvantage of Amazon would be a problem with the cloud service that could disturb the service.

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