Last month, we reported that Amazon was embracing blockchain with the launch of new services. But the move has confused many, according to Alex Jiménez, a Senior Strategist at Zions Bancorp.
There was a dual announcement which introduced a database service that includes a few blockchain-like features, along with the Amazon Managed Blockchain. “If you need a centralised ledger that records all application data changes, and maintains an immutable record of these changes, AWS provides a ledger database. This database is high-performance, immutable, and cryptographically verifiable, eliminating the need for building complex audit tables or setting up blockchain networks,” Amazon said.
“Many people read this portion of the announcement and assumed that Amazon, like many organisations before them, missed the point of a distributed ledger. The announced database service offers an uneditable (immutable) database with cryptographic capabilities. The ability to apply encryption to a database can be a valuable tool to deal with security issues,” Jiménez says in a blog post.
“I’m less impressed by not being able to edit it. I’m unsure about the uses for a centrally controlled database that can’t be edited. Current legacy database technology easily allows for uneditable fields. Regardless, I trust Amazon has looked at the market and has identified a market for such a database service.”
As for Amazon Managed Blockchain, this is a fully managed service that aims to makes it easy to create and manage scalable blockchain networks using Hyperledger Fabric and Ethereum. “Such a tool kit is a compelling offering that could lend the Amazon and AWS brands and reputation to existing distributed ledger models. This isn’t a revolutionary offering, as some people touted after the announcement, but it could mainstream the use of these frameworks,” Jiménez states.
He concludes: “Perhaps having Amazon acting as a catalyst to bring distributed ledger technology to mainstream development is worth something. With the bad press that blockchain has had lately, coming from its association with crypto and several failed tests, blockchain needs all the wins that it can muster.”
An Amazon spokesperson declined to comment.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.