Microsoft Archives

Microsoft to Embrace Decentralized Identity Systems Built on the Blockchain

Posted on March 14, 2018 | by [email protected]

Bitcoin, Litecoin, and Ethereum are getting a boost from an unlikely partner, Microsoft, who plans to work with blockchain technology in creating decentralized identity systems. Through the process of decentralization users will have full control over their identity, making this the perfect solution to a growing systemic problem. The tech giant has agreed to join the ID2020 initiative, an alliance of public and private companies, as well as governments, working towards improving the lives if 1.1 billion people around the world lacking any form of legal identity. With this agreement, Microsoft is making a donation of $1 million as well as allocating additional resources and human-power to the cause.

The Problem

Over 1 billion people across the globe lack a proper form of identification that is recognized by the world’s governing bodies, leaving them without many basic rights such as healthcare, public education, access to banking, and more. This also makes those without a legal form of identification more susceptible to displacement and human trafficking. On a macro level, this problem prevents aid organizations from accounting for accurate population data, making it difficult for them to allocate resources appropriately where they are needed most.

The Solution

The use of blockchain technology is paramount in the attempt to provide digital identities to those in need. Blockchain technology is a brilliant solution for providing digital identities to those in need, as it allows for the distribution of trust across a decentralized network. This ensures that no one entity control over information and ultimately keeping data and identity information secure.

Blockchain identity solutions work on a system of trust known as “attestations,” inherent in many public blockchains such as Bitcoin and Ethereum. In this process, an individual asserts pieces of their identity which are then verified by trusted parties. This differs from the current identification process which entails accessing and authenticating data through the use of password protection.

Through the process of decentralized IDs (DIDs), identity is verified through a variety of methods such as fingerprint scanning, facial recognition, date of birth information, social media accounts, and more. With no physical form of identity required, individuals run no risk of losing their identity, as it is securely stored on the blockchain. Each individual determines when their information is distributed and to whom, giving the individual full control over their identity.

How does Microsoft fit in?

The company plans to use its Microsoft Authenticator app to support DIDs, along with public blockchains such as Bitcoin, Ethereum, and Litecoin to foster the growth of this project. Currently the Authenticator app is used as a secondary proof of identity verification on mobile devices and already has millions of users worldwide. The plan is for this application to be used in conjunction with DIDs to directly manage cryptographic and identity information. Users will be able to allow Microsoft to act as their user agent on their behalf to manage user information and cryptographic keys. However, this won’t give Microsoft access to the ID itself, which is encrypted and rooted on the blockchain and unable to be viewed.

This is another step in the direction of further blockchain development for Microsoft, which has already been working with the Decentralized Identity Foundation and Tierion on DID projects, as well as the Enterprise Ethereum Alliance to incorporate aspects of blockchain into their business. “We believe it is essential for individuals to own and control all elements of their digital identity. Rather than grant broad consent to countless apps and services, and have their identity data spread across numerous providers, individuals need a secure encrypted digital hub where they can store their identity data and easily control access to this,” said Director of the Microsoft Identity Division Alex Simons.

Through the process of implementing these decentralized identity systems, Microsoft is demonstrating even further adoption/incorporation of blockchain technology at the enterprise level.

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Trump’s anti-immigration policy is causing the Bitcoin prices to soar and here’s why

Posted on February 1, 2017 | by [email protected]

During the presidential race, Republican candidate Donald J Trump came out with a set of policies that defined his ideologies and set up the foundation for a successful campaign. The economists around the world were concerned that Trump’s presidency and economic policies would result in a market collapse. Nevertheless cryptocurrency proponents were optimistic about Trump’s presidency as his policies were positive re-enforces for fintech industry. This reflected in the rise of Bitcoin prices when Trump won the elections in 2016.

President Donald Trump took to office in January and started to deliver on his promises right off the bat. Trump has signed an anti-immigrant policy in the first week of administration and this has caused a lot of ruckus amongst the populous. But this event has boosted Bitcoin prices in the most unexpected fashion and has proven positive for cryptocurrency markets. Let’s dive deep into how the policy has affected global markets and Bitcoin prices in particular.

The ban on Immigrants:

President Donald Trump signed an executive order 27th -Friday that indefinitely suspends admissions for Syrian refugees and limits the flow of other refugees into the United States by instituting what the President has called “extreme vetting” of immigrants. The order bars all persons from certain “terror-prone” countries from entering the United States for 90 days. The countries impacted due to the ban are Iran, Iraq, Syria, Sudan, Libya, Yemen and Somalia. The real blow came when even Green Card holders from the respective countries were ordered to be deported when looked into the finer details.

The petition that followed:

The order came as a surprise for many Multi-National Companies that base the core of the structure on the kind of talent diversity offers. The order wasn’t received in good stead by these companies as this would, to a little extent, result in loss of workforce for these companies. To counter these effects, major tech companies like Microsoft and Amazon have launched legal action against the executive order. Both firms have joined the Washington state government in a lawsuit challenging the details within the order. As part of the case, Microsoft, Amazon and also Expedia, are all preparing legal statements saying how the move from Trump has an impact on their business.

How Bitcoin markets benefited:

With corporate giants backing the petition, the global equity markets are in a state of apprehension. The effect of the ban has reflected in the market prices of the stocks of the highly affected companies and continues to remain in that state. With so much uncertainty surrounding the global markets, investors are looking for options to shield their assets from the impending volatility. That is where Bitcoin and Gold come into picture. Bitcoin is the digital analogue of Gold which proved out to be the Safe Haven in 2016 with better returns and non-correlation. On the same accounts, the Bitcoin prices saw a good boost over the weekend with prices approaching all time high again. Will further policies from Trump give Bitcoin the boost to breach all time high? That only time will tell.

Bitcoin Exchange Gemini to Launch Daily Auctions

Posted on September 23, 2016 | by [email protected]

Bitcoin has seen a significant shift in price level going into the last week of September. Breaking the support at $600, the prices rammed into its support around $595 and rebounded back to higher level. While the support at $595 looks strong, whether the prices will bounce back above $600 again depends on the fundamentals. While currently there are no strong fundamentals to direct the price, let’s look into the latest developments in the market:

Winklevoss Bitcoin Exchange Gemini to Launch Daily Auctions:

Gemini Trading, the bitcoin and ethereum exchange, founded by Winklevoss brothers, is all set to host daily bitcoin auctions. Such auctions are common for New York Stock Exchange or Nasdaq to determine more accurate closing prices for the day. However Gemini is positioning the auction as more than a first for its exchange.

Tyler Winklevoss stated:

“It’s the first ever end-of-day auction on a bitcoin exchange. It’s a pretty standard feature on traditional exchanges that didn’t exist on a bitcoin exchange until now.”

The launch represents the effort by the Winklevoss brothers to create investment mechanisms for mainstream investors. Beginning at 5pm ET every day, Gemini will begin accepting two-sided bids in BTC/USD for the next day’s auction. By concentrating liquidity at a single moment each day, Winklevoss says the auction will increase liquidity. At the same time, this will minimize “slippage” that results from large investors who affect the price with their purchases. After 22 hours and 50 minutes of bidding, Gemini will begin publishing “indicative auction prices” every minute. This gives the bidders a chance to pull out their bids until 3:59pm ET, after which the final bid closes. The closing price is the price at which the greatest aggregate buy and sell demand meets.

Accenture and Microsoft reveal Blockchain plans:

Last week, an executive from Accenture described Bitcoin’s immutability as a weakness. Now, the company has designed a distributed ledger platform to address this alleged fault. Accenture says data is viable for edits on this blockchain, but only under “extraordinary circumstances.” The prototype according to Accenture is immutable to its user base but, if necessary, designated administrators can “edit, rewrite, and remove blocks of information.” The company claims it enables this feature with a new function called “chameleon.”

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While Accenture is ready with a prototype, Microsoft announced the updates on “Bletchley Blockchain Project” during Blockchain week in Shangai. Project Bletchley aims to harness the power of consortium-based blockchains. Bletchley creates a template that enables customers to “spin up” a consortium network using a permissioned version of Ethereum. The Azure initiative also introduces Cryptlets, a primer for “next generation” blockchain applications. Similar to the Hyperledger Project, Bletchley aims to deliver a blockchain application fabric. Microsoft says this initiative will allow enterprises to collaborate with operations differently. With the template and Cryptlets, developers can get the foundations for building distributed ledger apps.

Microsoft Launches Smart Contracts

Posted on September 5, 2016 | by [email protected]

The First week of September was positive for Bitcoin enthusiasts as the currency is healthily trading over $600 levels. With steady volumes being traded, analysts are expecting a big swing that might take the price upwards of $720. While Microsoft launching Smart Contracts might be one factor, let’s look into other positive highlights of the week:

Microsoft and Smart Contracts

Microsoft has announced that it is forming a dedicated group for improving smart contracts security. The group named as ‘Kinakuta’, aims to make it easier to share information and tips about smart contracts. Smart Contracts refer to self-executing blockchain-based code that could automate complex transactions. Concerns about the contracts have grown after vulnerability led to the collapse of the technology’s first large-scale implementation. There has been a growing realization that smart contracts are new and can sometimes be dangerous if used improperly.

However, Microsoft’s director of business development and strategy Marley Gray believes new tools might help developers avoid future mistakes.

Gray told:

“We feel there’s a huge opportunity here to involve the community. Kinakuta is the community building around Microsoft best practices and elsewhere, to collect best practices and tools and involve developers in creating these best practices.”

Australia to end Bitcoin Double Tax

The Australian Treasurer and the FinTech Advisory Group met on Friday to further discuss the development of innovation. Among topics focused on were blockchain technology and ending the double tax for digital currencies, including bitcoin. The meeting discussed various FinTech topics, including a review of opportunities for blockchain technology. Also, the government reiterated that its intention is to stop the ‘double taxation’ of digital currencies under the GST regime. Currently, consumers in the land down under are ‘double taxed’ when using digital currency to buy anything already subject to Goods and Services Tax (GST). The Australian Tax Office (ATO) does not consider bitcoin and other cryptocurrencies money or foreign currency.

On the same lines popular peer to peer bitcoin exchange LocalBitcons has announced reduction of trading fee for bitcoin trades in UK. After Brexit, there was a fall in Sterling Pound Valuation. This move is aimed at increasing bitcoin trades among UK customers. Starting from September 5^th, the transaction fee has been halved for all the customers in UK.

Japanese organizations launch Blockchain Collaborative

The University of Tokyo, The University of Aizu, Center for Global Communications (GLOCOM), and Soramitsu Co. have partnered to study “smart currency” effects on regional development. The working groups will experiment with distributed ledger technology. The Universities and Global communications have taken up theoretical research on the applications in most of local regions. Fintech startup Soramitsu, a company using blockchain technology to create a digital identity platform, is handling the industry application part. Soramitsu is a member of the Linux Foundation’s Hyperledger Project, which aims to create international industry-wide distributed ledger standards.

How ripples of these events would further effect the price, has to be seen in the coming week.