Microsoft is helping Taiwanese fintech company AMIS and the Industrial Technology Research Institute of Taiwan (ITRI) to form what is called the “first and most advanced consortium blockchain network” in Asia. Through Microsoft’s Azure cloud platform, the three companies are looking to bring disruptive blockchain and Ethereum technology to the banking industry in Taiwan.
Microsoft has already been collaborating with several banks in an attempt to increase adoption of blockchain-based tech in the Taiwanese financial market by individually partnering with MegaBank, Ubon Financial, Cathay Financial Holdings, KGI, Taishin, and CTBC Bank. The new partnership with AMIS and ITRI will be the first consortium to push further blockchain adoption.
AMIS chose Azure specifically because it is in compliance with many international standards and has security and privacy features built into it. Azure is also the only platform offering Blockchain-as-a-Service (BaaS). Through an Azure Quickstart Template, a user could launch an Ethereum blockchain network with the click of a single button. Danny Ting, a national tech officer for Microsoft Taiwan, said:
Blockchain is a catalyst that promotes cross-sector collaboration. At the moment, companies incur high costs when they perform any cross-organization transactions and this can be solved using blockchain technology. The offering can also inspire further innovative solutions for the industry.
Microsoft’s BaaS helps companies build a secure, reliable and interoperable blockchain infrastructure by leveraging Azure’s machine learning capabilities to achieve useful data insights. More importantly, Azure complies with many international and industry certifications and standards, such as ISO 27001, ISO 27018 and PCI-DSS; as well as integrates identity management and authentication capabilities to ensure the highest level of security for the broad implementation of blockchain technology.
Security, interoperability, and compliance to industry certifications and standards are integral for the adoption of blockchain technology by incumbent financial enterprises. Along with ITRI’s innovative technologies, AMIS will be using Ethereum to develop a permissioned blockchain, which would provide several benefits for Taiwan’s financial institutions.
The consortium partnership aims to bring efficiency, cost savings, and faster settlements to companies in Taiwan by utilizing the blockchain’s ability to provide two-way payments, cross-field integration, the expediency of cash flows, and the possibility of community payment apps in the future. Alex Liu, CEO of AMIS, said:
Microsoft Azure offers a trusted cloud environment and provides AMIS with the necessary support in the areas of security, privacy, transparency and compliance. These are key in ensuring a sustainable development of local blockchain technology.
What’s impressive about this whole endeavor isn’t just that it’s a great use case for Ethereum, but that it’s a use case that’s actually being implemented. If Taiwan’s financial market is able to integrate blockchain technology into the daily operations of businesses and sees real improvements, it could become the first domino to fall in a long line of finance industries that have yet to adopt the technology. If Taiwan shows that the distributed ledger technology is a true advantage in finance, widespread global adoption could become more of a reality.
ETHNews has reached out to Microsoft for comment.