The Cryptocurrency market is attracting a lot of big tech companies, and Microsoft is the latest to get involved. The software giant has chosen to enter the market with the Blockchain technology, a move that is great for the security of the systems based on the tech.
Microsoft enters the Cryptocurrency market
The company is reportedly collaborating with an Israeli lender, Bank Hapoalim for blockchain technology based digital bank guarantees. Bank guarantees are a declaration of assurance from a bank that a debtor’s liabilities will be met if an obligation is not fulfilled.
What Microsoft is doing here is bringing the technology to a mainstream audience where financial institutions are concerned. We understand the company has partnered with an Israeli lender known as Bank Hapoalim in a bid to push forward digital bank guarantees based on the blockchain.
What is a bank guarantee then?
It’s all about one bank giving an assurance that the liability of a debtor will be met if a contracted obligation is not delivered. Interestingly enough, the bank and blockchain combination will be the first to enter Israel’s banking sector, which should be viewed as a boon for digital currencies.
Now then, once the application is deployed, there will be no need for applicants to visit a bank physically. Furthermore, the technology with Microsoft’s help should make for a more secure and less time-consuming documentation process.
Microsoft Azure playing a huge role
When it comes down to service delivery, Microsoft Azure will be at the forefront. This is great news for the company as it aims to use its cloud services to penetrate several markets around the world. Because of this, Microsoft can expect to see increased competition from the likes of Google and Amazon in this sector.
Blockchain has become increasingly important in recent times because the technology cannot be breached, well, at least not yet. Financial companies are losing less due to a drop in cyber crimes, so one should not be surprised if most commercial entities adopt the tech in the near future, says MSN.
A report from MarketsandMarkets stated that by the year 2021, the blockchain market might hit $2.31 billion, which is a huge step up from the $210.2 million the market earned in 2016 alone.
It’s the perfect time for Microsoft to enter the market. IBM’s dominance here will be challenged, but at the same time, this is ideal for better competition and for moving the blockchain technology forward into the future.