Microsoft’s[1] cloud platform Azure[2] has introduced a proof-of-authority (PoA) algorithm on its Ethereum[3] (ETH) blockchain[4] product, according to a blog post[5] Aug. 7.
The new Ethereum network algorithm will reportedly allow a “more efficient” way of building decentralized applications (DApps[6]) for private or consortium networks, where “all consensus participants are known and reputable.”
In contrast to proof-of-work[7] (PoW) — the existing protocol on Azure — a PoA algorithm is based[8] on the principle of approved identities or validators on a blockchain, and does not require competition in completing the transactions.
The new Ethereum product on Azure is equipped with a number of features to ensure its correct functioning and security, such as an identity leasing system, Parity’s web-assembly support, Azure Monitor, and a Governance DApp.
The identity leasing system intends to ensure that while each member possesses “redundant consensus nodes,” no two nodes can carry the same identity. The system provides identity protection even in the case of virtual machine (VM) or outage, so the new nodes “can quickly spin up and resume the previous nodes’ identities.”
Parity’s web-assembly support aims to simplify the process of building smart contracts[9], enabling customers to write them in languages that are more familiar than the existing Solidity programming language on the ETH blockchain. The blog post notes that developers will now be able to write DApps in such languages as C, C++, and Rust.
The Governance DApp solution intends to simplify voting and validator delegation in the process of participation in a consortium. By enabling this feature, the developers provide customers with a level of
