The Blockchain quest: Why AWS is saying nay while the rest of the world goes yay

The Blockchain quest: Why AWS is saying nay while the rest of the world goes yay 800 400 C-Suite Network

Google, Goldman Sachs and many large banks are betting on Blockchain tech, but Amazon Web Services will wait and watch as it doesn’t ‘build technology because we think it is cool’.

Last week, Amazon’s re:Invent had over 40,000 developers and businesses attending the technology conference in Las Vegas, Nevada. While every technology from Artificial Intelligence (AI) to Internet of Things (IoT) was discussed and certifications doled out to enthusiastic developers, Andy Jassy and Werner Vogels, the CEO and CTO of AWS, were reserved about Blockchain.

The distributed ledger technology, which is behind the Bitcoin cryptocurrency, allows transactions between multi-parties to be transparent and seamless; it ensures information cannot be tampered with. Everyone sees such a transaction as a “smart contract”. However, the AWS head honchos think differently.

Andy says: “A lot of our clients are building on top of Blockchain. But, I think the technology does not have the use cases yet for us,” beyond the distributed ledger. He adds AWS wants to spend time building technology that can be used by developers, rather than “building something cool”.

There is a reason why Amazon may not be betting on this technology. If Blockchain has to take off, it has to probably track and close thousands of contracts per second. The stock and bond markets, with billions of transactions between parties every day, are a classic example. Current legacy systems handle trade on a real-time basis, but work in silos and do not talk to each other. Unfortunately, today they have an edge because Blockchain technology handles only a handful of transactions a second.

Why Blockchain makes sense

Arifa Khan, the representative of Etherium Foundation in India, says, “Blockchain has arrived, and today world leaders recognise it as a very important technology. But, it has not yet been able to transact thousands of contracts per second; that’s why adoption has been slow. In 10 years, it will be more than mainstream.”

According to PWC, $10 trillion of the global GDP will be on Blockchain by 2030, which is 10 percent of the global GDP. Why does it make sense? India, a $2 trillion economy, loses $20 billion each year tracking land titles. But since there are no large-scale use cases, companies are yet to adapt to it.