Category: Smart Contracts

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A Half Year Report on virtual currencies in 2018

Categories Blockchain, Cryptocurrency, Regulatory, ICOs, Malta, ICO Legal Service, Law, The Blockchain Island, DLT Regulation, Smart Contracts, E&S Group, Technology, Trading, Cryptocurrency Exchange, Tokenomics, Regulation, Tokens, Binance, Utility Tokens, Security Tokens, DLT

A Half Year Report on virtual currencies in 2018

2018 has been an interesting year for crypto with colossal crashes, much-needed market adjustments, and of course, the emergence of a large number of new tokens and cryptocurrencies. Along with significant advances in regulation and legal frameworks that seek to understand, support, and protect those stakeholders operating within this new industry, there is no doubt that the rest of 2018 is going to be just as, if not more exciting as the previous six months.

Mid-January Market Crash

If you were holding Bitcoin in December 2017, you probably couldn’t believe your luck. As the value of a single Bitcoin headed towards $20k, a mad rush to invest ensued and predictions on where the price may head reached stratospheric new heights. Then on January 16th 2018, Bitcoin investors woke up to a nasty shock. The value of their coins had dropped by 15% and this news had a knock-on effect on the value of all other altcoins, causing a huge slump in the value of the market. The excitement and hype that had surrounded cryptocurrencies just a few days before, disappeared just like the profits of those who invested in it.

As prices continued to fall, investors started to panic. They started selling their coins in an effort to nip their losses in the bud and the moniker “Black Tuesday” was coined. Some crypto-coins saw losses of up to 40% and it seemed like many naysayers predictions were coming true and that the bubble had finally burst. Some voices remained steadfastly optimistic however and maintained that price slumps were common in all markets, not just the crypto one. After such an exponential increase in value, it was naturally expected that the market would correct itself because after every meteoric rise comes to a reverse-swing of the pendulum that needs to be ridden out – January was exactly that. As prices are now more stable it is hoped that they will increase at a steady rate, signalling a new era of market stability and maturity.

TRON Makes a Name for Itself

Since January of this year, TRON has experienced a steady increase in value. Despite a few issues, mainly caused by the crypto price-crash, it seemed to have found its niche which suggests a bright future for both the platform and its cryptocurrency.

TRON is a decentralised, blockchain-based, protocol project that functions as a content distribution platform for the digital entertainment industry. Whilst the platform itself is yet to go live the TRX coin is gaining significant traction.

Created by Justin Sun in 2017, the concept behind it is to establish a global network of free entertainment content which allows creators to publish, store and distribute their own content without the need for an intermediary. Whilst its value per coin was only $0.30 in January, it is expected to hit $1 by the end of 2018.

Its main selling point is that it is not just another cryptocurrency. It has a platform that solves a problem and offers functionality to a range of users and publishers. Over the last year, TRON has increased in value by 1.39% making it one of the top crypto coins in terms of growth, making it one to keep your eye on as we progress through 2018.

The Unexpected Rise of Litecoin

Many have dismissed Litecoin as “the poor man’s Bitcoin” but despite this, its popularity has increased drastically over the past few months. It was initially launched via an open-source client on GitHub in 2011, a sort of spin-off of the original Bitcoin Core client, but it offered much lower block generation times, a higher number of coins, a modified GUI, and a different hashing algorithm.

In 2013 it experienced a big surge in value and by May 2017 it had secured a spot as one of the Top 5 global cryptocurrencies in terms of its market cap. Now accepted by a wide range of online retailers, its adoption is increasing and many are seeing it as a better alternative to the rather bloated and over-inflated Bitcoin.

12 and even 6 months ago, blockchain was not something that was widely understood but as we progress to the end of 2018, it is expected that we will see a dramatic uptake of blockchain integration across a diverse range of sectors. Following in the footsteps of IBM, Microsoft, and Maersk, even smaller SMEs are likely to be interested in harnessing its potential.

Litecoin is predicted to peak at a value of over $600 per coin by the end of 2018 and there is no doubt that it has huge potential. Negating many of the issues that are faced by Bitcoin users, it presents a practical, simplified and completely viable alternative to the crypto-giant.

Malta Takes the Lead in Industry Regulation

In the last 12 months, it has seen cryptocurrency, blockchain and ICOs negate a minefield of regulatory and legal issues. Problems around its classification, AML and KYC regulations, and the reluctance of many banking institutions to support the burgeoning technology has resulted in many setbacks for the crypto world but that is all set to change.

The island of Malta has long been a hub for digital technologies and it is well known for its iGaming, Finserv and Fintech industries that when combined, account for around half of the country`s GDP. Then, in March 2018 the Government announced the drafting of three new bills that would seek to provide legal and regulatory clarification on DLT, crypto, and ICOs. These bills are the Virtual Financial Assets Bill which would provide a regulatory framework for ICOs and virtual currencies, the Malta Digital Innovation Authority Bill and the Technology Arrangements and Services Bill which will oversee companies that operate within the market, as well as providing a much-needed guidance and clarification.

This makes Malta the first jurisdiction in the EU, and the world to create a comprehensive legal framework that not only protects all stakeholders including operators and investors, but also supports the growth and development of the industry. By ensuring explicit legal clarification as well as adherence to AML and KYC regulations. This means that the industry will receive a much-needed confidence boost and will help to increase the  level of public trust in this new market sector.

Binance Relocates to Malta

As a result of Malta’s decision to support cryptocurrencies and related industries, an exciting announcement came just a few days later. Binance is the largest cryptocurrency exchange in the world and commands 10% of the global trading volume as well as having a market capitalistion of $1.3billion at the time of writing. Its founder Changpeng Zhao started Binance in July 2017 and in just a couple of short months, it has grown to be the market leader.

Following the introduction of restrictive laws in Japan and China regarding cryptocurrencies and exchanges, Binance was on the look out for a more welcoming and flexible home. On March 23rd, Binance announced their move to Malta and the crypto community rejoiced. Such a vote of confidence is a big deal for the small EU country and it is expected that such a move will encourage many other companies and startups to follow suit.

The Blockchain Boom

This time last year, most people had heard of the blockchain but only in the context of it being intrinsically linked to Bitcoin. Now, the technology has broken away from just monetary uses and has earned a lot of attention for its potential. In the last few months, more and more use cases have come to prominence at blockchain has found uses in industries such as logistics, healthcare, politics, real estate, and even crypto-powered beer vending machines. It has also been tipped to completely revolutionize the way we vote, as well as provide microloans to SMEs in developing countries and to solve the energy crisis in third world countries.

 

E&S Group is a leading corporate & law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at [email protected] to find out how E&S can help you in ‘making things happen’.

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Volkswagen to Launch IOTA Decentralized Enabled Cars

Categories Blockchain, Smart Contracts, IOTA, Proof-of-Concept

Volkswagen to Launch IOTA Decentralized Enabled Cars

IOTA, the IoT-driven blockchain platform has announced plans to launch real-world integration with leading car manufacturer, Volkswagen. In a project called The Digital CarPass that is to be released in 2019, data will be performance tracked via the IOTA blockchain with the aim of ensuring its reliability and security.

The news was announced by Volkswagen’s Head of Blockchain, Benjamin Sinram at a blockchain event held in Tel Aviv. The project is the result of a collaboration between IOTA and Volkswagen that was first announced as a proof-of-concept earlier this year at Cebit 2018. The PoC provided a focus on delivering a trustworthy vehicle software solution via the Tange network in order to improve efficiency and customer satisfaction.

Speaking in Tel Aviv, Sinram explained that VW wants to work towards full IOTA integration to enable customers to be able to access new services and pay for them automatically. As well as working on the VW/IOTA CarPass project, Sinram is also a part of teams working on integration with Porsche and the Volkswagen financial services sector.

This IOTA CarPass is one of five blockchain projects that are currently being actively developed by Volkswagen. The solution being developed by Porsche will focus on identity determinations that will enable multiple users to share access to the same vehicle and other projects include supply-chain orientated ledgers, as well as a charging protocol that will use Ethereum technology.

Other features will give drivers an opportunity to keep track of how many miles they have driven and the possibility of providing accurate data on car emissions, a problem that has plagued VW in the past.

 

If you are looking to learn more about Blockchain E&S Group is a leading corporate & law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at [email protected] to find out how E&S can help you in ‘making things happen’.

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In-depth look at the Chinese answer to Ethereum

Categories Blockchain, Cryptocurrency, Smart Contracts, Technology, DLT, NEO

In-Depth Look at the Chinese Answer to Ethereum

Formerly known as ‘Antshares’ Neo has a range of features that make it vastly superior to Ethereum.

Similar in some ways to the second-generation blockchain platform, NEO supports smart contracts which enable complex logic to be built into blockchain-based transactions. This means that tasks such as payments can be executed depending on pre-determined conditions and events being satisfied.

When the project first launched back in August 2016, its focus was mainly on digital assets, its marketing was lackluster, and its value languished for the best part of nine months. But then, something changed.

In the spring of 2017, things changed within the NEO project. An announcement was made regarding a major cooperation with the Chinese government and re branding of NEO. This led to a surge in value, as well as it was getting coverage in the English-speaking media.

From then on, it was dubbed as the “Chinese Ethereum” and the combination of that huge market, and an established name such as Ethereum catapulted its popularity to stratospheric new heights.

Flexible development

One difference between NEO and Ethereum is that NEO supports a range of different programming languages including Java, C£, VN.Net, Kotlin, and Python, with plans to include C, C++, Golang, and Javascript in the pipeline.

It also provides plug-ins and compilers for these languages which means that they can compile high-level languages into instruction sets that are supported by the NEO virtual machines. This means that the platform is much more accessible to many more developers because it means that they can use programming languages that they are already familiar with.

No forks

Blockchain platforms rely on consensus to ensure that all transactions are valid. Projects such as Bitcoin and Ethereum use what is known as a ‘Proof of Work” method which requires the use of a lot of computational power to solve complicated cryptographic problems.

Another popular method is the ‘Proof of Stake’ which uses blockchain nodes to stake or allocate funds in order to receive verification rewards. The benefit of PoS compared to PoW is that it uses significantly less energy and is more environmentally friendly.

NEO, however, uses a completely different consensus method called Delegated Byzantine Fault Tolerance (dBFT) which does not allow any splits or forks within the chain. This is a huge benefit as forks cause a lot of controversy within crypto communities and avoiding this drama means better stability for NEO platforms.

Better speed

Ethereum and Bitcoin both suffer from costly and inefficient transaction times. Ethereum can handle around 15 transactions a second, but NEO can support 10,000. NEO is designed to handle mainstream apps such as Cryptokitties and it is also much better equipped to handle the future, as adoption increases.

Quantum Computer Proof

Each day we are getting closer to a time when quantum computers will be a thing. When they are, almost every cryptocurrency in the world will be vulnerable as these computers will have the ability to break them cryptographically. NEO is already immune to them as it uses quantum-resistant cryptography.

Dividends

An NEO coin represents a stake of ownership of the NEO platform. With a total of 100 million NEO coins in existence, each one represents a share in its blockchain as well as voting rights for important decisions. As shareholders, they also get recurring dividends in GAS coins which are also used to pay for NEO transactions.

If you have any questions in relation to NEO platform peculiarities or ICOs,please contact us on [email protected]

 

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Hospital in Taiwan launches a ledger technology-based record keeping system

Categories Blockchain, Smart Contracts, Data

Hospital in Taiwan launches a ledger technology-based record keeping system

The Taiwanese government is in the process of consolidating its Hierarchical Medical system policy and this is set to include a blockchain-driven platform that will be used to advance the way that medical records are stored.

The Healthcare Blockchain Platform will increase the efficiency of patient referral services as well as integrating healthcare networks so that individuals are able to access their medical data as and when they want.

In a statement released by the hospital, they stated that the new platform will be a one-stop referral service and will provide long-term care services in terms of the HMS policy.

The project came to fruition due to a collaborative effort between 100 community-based clinics that chose to utilise the use of the blockchain. By addressing issues that commonly affected them, issues like the transfer of data between institutions, personal patient portals, and referral processes could be simplified.

“Using smart contracts, hospitals and clinics can request and authorize patient record sharing easily and securely,” the report noted.

Chen Ray-Jade, the superintendent of a leading hospital stated that the programme would provide a way of synchronising medical records with electronic health records from a large network of hospitals and clinics. It would also have the ability to notify and require consent before any transfer of data would be executed.

Back in August, a medical Big Data ecosystem designed for the storage of sensitive personal information was created by a South Korean biotech enterprise called Macron, and a local firm called Bigster. This was a significant move that made waves in the medical community by facilitation the secure storage and transfer of sensitive information over the blockchain.

A German company called Camelot Consulting Group also created a similar blockchain portal that would manage medical data.

 

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Lloyd’s of London enters the digital currency market

Categories Blockchain, Cryptocurrency, ICOs, Bank, Smart Contracts, Technology, Lloyd's Bank

Lloyd’s of London enters the digital currency market

One of the oldest insurance marketplaces in the world, Lloyd’s of London has moved into the cryptocurrency sphere by offering clients cover against the theft of crypto coins.

The Kingdom Trust, a qualified custodian of cryptocurrencies and tokens announced the availability of insurance against theft and lost due to natural disasters, that would be underwritten by Lloyd’s market. A qualified custodian is defined as an entity that keeps and guards the private keys of a large number of cryptocurrencies to a standard that is deemed acceptable by regulated financial institutions.

The CEO of Kingdom Trust, Matt Jennings said:

“We serve both institutional and individual investors by providing qualified custody, which gives our clients the framework they need to ensure compliance with their regulators using clear and transparent reporting.”

A surprise move

The news came as something of a surprise as the insurance industry is widely considered one of the most traditional and conservative industries, but it appears they are becoming more interested in alternative markets. In recent months, it also came to light that US-based underwriters such as AIG, XL Catlin, Chubb, and Mitsui Sumitomo Insurance have also shown interest.

Whilst Lloyd’s may have taken a big step, it seems that they are treading carefully and have made no comment on the news that some of their managing agents are offering crypto-theft cover. This has been put down to a degree of hesitancy in the marketplace as a whole, in terms of cryptocurrency as an asset class.

Act with caution

Just as recently as last month, Lloyd’s of London issued a directive to all syndicates that warned them to act with caution in terms of cryptocurrency assets, as well as ensuring that their managing agents have the required level of expertise when it comes to underlying risk.

President of the SDBIC, Jerry Pluard commented:

“About 10 syndicates in Lloyd’s have indicated a willingness and are somewhat active in evaluating crypto exposures,” Pluard said, continuing:

“Of those 10, I would say there are five that have the level of expertise that allows them to be comfortable enough to do the analysis and underwriting of the risk, and then the other five will follow on with those leads in writing exposure.”

It seems that Kingdom Trust were able to secure underwriters from the Lloyd’s market place due to a combination of respected security protocols, as well as new technologies. Features such as proof of reserve, external oversight, whitelisting of addresses, daily reconciliation audits, and stringent employee due diligence procedures, all played a great importance in securing the confidence of the markets.

More than just a wallet

The solution provided by Kingdom Trust is so much much more than just a wallet, said Jennings, adding that the insurance market is aiming for something more than just a good wallet solution from an unregulated third-party software company.

“A lot of people are seeking insurance for hot wallets or what they call warm wallets and some people even call them cold wallets,” he said. “But I think the insurance market wants to see an entire safekeeping solution that encompasses the entire atmosphere around the private keys.”

This move is considered as a big boost for the crypto-world at a time when the industry is still recovering from the rejection of 9 Bitcoin ETFs by the SEC and many stakeholders are interested to see, who else will make their first move into the sphere.

If you have any questions in relation to ICOs, and Malta’s legislation regarding ICOs and blockchain please contact us on [email protected]

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Why the SEC was right to reject nine BTC ETFs

Categories Blockchain, Cryptocurrency, Smart Contracts, Technology, Tokens, Wallet, Security Tokens, Ethereum, Securities

Why the SEC was right to reject nine BTC ETFs

When news broke that the US SEC had rejected a total of nine separate applications for Bitcoin Exchange-traded fund (ETFs), a key player in the industry feared the worst for not just the markets, but the future of the technology as well. But this may not actually be the bad news that everyone first thought it would be and this is why.

Whilst the cryptocurrency industry is pretty keen to launch exchange-traded funds (ETFs), regulatory bodies such as the SEC do not share their enthusiasm. For many, a crypto-ETF is seen as the next big milestone in the mainstream adoption of crypto and virtual assets.

Over the last few years, the US Securities and Exchange Commission has received a number of ETF proposals from companies and individuals such as the Winklevoss twins, none of which have passed its stringent sets of criteria. It seems that they are not convinced that the world of cryptocurrencies is ready for ETFs just yet.

Back in 2013, the Winklevoss twins were the first to file a Bitcoin-based ETF proposal and the agency mulled over its decision before rejecting the proposal around four years later. Then, in June, the twins filed another proposal which was swiftly rejected by the agency. Following the most recent round of rejections, the SEC has promised to review its decision but it seems unlikely that they are set to rule in favour of BTC ETFs any time soon.

The main reason for all of these rejections has been cited as the risk of market manipulation and the fact that the regulated market is not big enough to warrant such a decision. The issue of market manipulation remains as one of the biggest concerns in the crypto world. As a very small number of people own a very large amount of cryptocurrency (known as whales) this means that technically, prices can be artificially increased or decreased to suit the agenda of a few. The fact of the matter is that most creators of cryptocurrency retain large amounts of the coin, for example, Satoshi Nakamoto has 5.88% of all BTC, Ripple owns 60% of the XRP supply and the majority of ICO companies retain around 25% of all their tokens.

Couple this with the paranoia around regulation and lack of protection for investors and stakeholders and it is not hard to see why the SEC is wary.

The only way that cryptocurrencies are going to be able to enter such a regulated market is through widespread regulation on a global scale. Until this happens, Bitcoin and any other cryptocurrency can say goodbye to any kind of regulated ETF.

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MFSA organised a seminar titled: Due Diligence and Cybersecurity in Relation to DLT

Categories Blockchain, Cryptocurrency, Regulatory, Malta, The Blockchain Island, DLT Regulation, Smart Contracts, Technology, Trading, Regulation, Artificial Intelligence, Tokens, Conference, MFSA, DLT, Privacy

MFSA organised a seminar titled: Due Diligence and Cybersecurity in Relation to DLT

 

Last Tuesday, 11th September, MFSA organised a day seminar for those who work in the field of DLT and Fintech which took place at Corinthia Palace Attard. The seminar titled ‘Due Diligence and Cybersecurity in Relation to DLT’, discussed many challenging issues that the DLT is facing. Many topics were discussed during this seminar, with a particular focus on cybersecurity, hacking and fraud.

E&S Group was represented by its team who gained a better insight into this ever-growing space.

Speakers from around the world, (most notably coming from France, Germany, England and the USA), attended the seminar. They spoke about their concern about hackers’ attacks which are made every day, and also covering the topic of frauds. In fact, in the past few years, many banks have experienced some kind of attack, with the consequence of losing their customers’ money. As a result, this has made the DLT space to look like a high-risk sector. However, everyone working in a network is subjected to an attack. The speakers all agreed that the blockchain technology needs to implement some sort of due diligence on the platform, preventing any hacks and tarnishing the sector further.

Moreover, it was discussed that crypto investors should conduct a due diligence procedure, helping banks and exchanges to identify who is fraudulent or not. Those institutions that do not follow any due diligence procedures are subjected to hackers accessing customers’ wallets, thus resulting in the bankruptcy of the company. In order to prevent such theft in the sector, cryptographers are creating complex algorithms to prevent such wrongdoings. This will help maintain the system to stay safe in combination with constant checks done to make sure no access is given to intruders. Mrs Maria Vello from Cyber Defence Alliance pointed out that that hackers are not anonymous and many criminals who stole money from banks have been caught by police.

VFA Agents in DLT

The event also highlighted the importance of VFA Agents. Accountants, auditors and lawyers who are applying to become a licenced VFA Agents have to go through a rigorous procedure, including, an exam, an interview and the applicable due diligence. The MFSA stated that this procedure is important to eliminate any “bad practises” within the industry. Moreover, the licenced VFA Agents need to conduct the Financial instrument test on their clients, thus presenting all the required information, one of which being the white paper, to the authority.

Malta has become the leading jurisdiction to have a friendly approach on DLT sector. At E&S Group we have helped over 80 ICOs to launch their project in Malta. If you would like to join these companies but require further advice, please contact us at [email protected] or by telephone on +356 2010 3020. We make things happen!

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Why Stellar is the best platform for smart contracts?

Categories Blockchain, Cryptocurrency, ICOs, Smart Contracts, Ethereum, DLT

Why Stellar is the best platform for smart contracts?

When it comes to decentralised and highly scalable blockchain solutions, investors and developers are always looking for the next big thing. Whilst Ethereum has been the go-to platform of choice when creating smart contracts and tokens, a growing number of ICOs are considering other blockchains.

A team of researchers from the National University of Singapore, Singapore’s Yale-NUS College, and the University College of London discovered several flaws and vulnerabilities within the Ethereum smart contracts. In one particular incident, the team were able to single out an incident where a user was able to indefinitely lock-down over $200 million of ETH on the Parity Project blockchain. This, along with other incidences has led to developers considering other platforms such as Stellar (XLM) which prides itself on having its own type of smart contract.

It is a common occurrence to find flaws in new types of technology. After the ground-breaking release, the technology performs very well until a bug is discovered or a mistake is made. When these incidents occur, other mistakes and vulnerabilities are often found, especially in the case of Ethereum smart contracts.

The aforementioned research team carried out extensive testing over 970,000 live smart contracts and found that 34,200 of them had vulnerabilities of some description. The issues with the security of the smart contracts were all discovered within the first 10 seconds of testing.

Stellar Smart Contracts (SSC)

Because of this, Stellar Smart Contracts are providing a possible alternative for Ethereum based smart contracts. Whilst XLM contracts are more expressive than ETH based ones, they do have limitations and are not as flexible as their Ethereum counterparts. This does, however, mean that they are less accessible to hackers.

The fact that SSCs require multi-signature authentication on transactions is also another feather in their cap as this sort of precaution would have eliminated some of the vulnerabilities with the Parity project. Furthermore, SSCs have the ability to conduct Batching and Atomicity transactions which means they have the ability to put together several operations in one single execution. Atomicity is a guarantee that if one of the operations in the batch fails, the rest of them will not go through. The process of Sequencing that is also present with SSCs ensures that certain operations do not go through successfully if and when other transactions are submitted. Last but not least, time constraints ensure that all transactions are completed within a set time and if they fail, they will become null and void.

For a Stellar Smart Contract to work, a team must sit down and agree on conditions, design, and the overall purpose of the contract and a consensus must be reached in order for it to function.

 

If you have any questions in relation to ICOs, please contact us on [email protected]

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Ethereum PoA algorithm introduced on Azure

Categories Blockchain, Cryptocurrency, Smart Contracts, Technology, Tokens, Ethereum, Applications

Ethereum PoA algorithm introduced on Azure

Azure, the cloud platform created by Microsoft has introduced a proof-of authority (PoA) algorithm that will facilitate a more efficient way of designing and executing decentralised applications (DApps) for use in private or consortium networks.

The new algorithm will function in a network where all consensus participants are both known and reputable and it will work as a direct contrast to the current proof-of-work (PoW) protocol that is being used. The new principle is based on approved identities and validators and does not require any form of competition in completing any of the transactions.

The new feature, powered by Ethereum will utilise a number of features that will ensure the correct functioning and security of the platform. These will include an identity leasing system, web-assembly support, Azure Monitor and a Governance DApp.

The web-assembly support will be powered by Partiy and will drastically simplify the process of designing and building smart contracts. This enables customers to create them in programming languages that they are familiar with, rather than the Solidity language that is used on the Ethereum blockchain. The new system will allow programmers to write in C, C++ and Rust.

Through the new Governance DApp solution, processes such as voting, validator delegation, and participation in consortiums can also be simplified. This feature will also allow customers to enjoy a certain level of abstraction which will also allow them to privatise all relevant data about an object in order to boost efficiency.

The launch of the Ethereum-based Azure cloud computing platform was first announced back in late 2015, whilst the original platform was founded in 2010. Azure now provides global networks managed by Microsoft data centres that develop, test, deploy, and manage a range of applications and services.

Back in June, the R3 blockchain consortium made an announcement that they along with 39 international financial companies had tested a new KYC application that runs 45 nodes over Microsoft Azure.

 

Interested in ICOs Legislation in Malta? Contact us directly on +356 20103020 or by email at [email protected] to find out more.

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Microsoft files two new distributed ledger-based patents

Categories Blockchain, Cryptocurrency, Smart Contracts, Technology, Tokens, DLT

Microsoft files two new distributed ledger-based patents

Microsoft has recently filed two patent applications which suggest they are looking at integrating trusted execution environments (TEEs) into their blockchain offerings.

A TEE is designed to store a pre-determined type of blockchain or security protocol code in what is referred to as a validation node. Using this type of data, Tee attestation is able to identify and verify those participating in the system and who possess information that matches within the node. When we refer to a node in the context of blockchain, it means a point of connection that is able to facilitate the receiving, sharing, and sending of data over the network.

This can be extremely useful in two ways, firstly a TEE can help to establish a consortium blockchain network. This network can then be set up to store a pre-determined membership list and therefore to securely onboard members of the consortium network.

Secondly, a TEE also has the capability to verify blockchain transactions over a similar network where various pre-authorised entities can interact. For example, the process of attestation through programmed TEEs means hat encrypted transactions on the network can be directly processed and confirmed in their original state without needing to be decrypted.

The patent states:

“In some examples, the entire network accepts the transactions, including chaincode transactions, and blockchain states are directly updated. In some examples, there is no need for a copy of the transaction in order to confirm a block.”

It seems like these filings were submitted back in June 2017 but it is only more recently that Microsoft has really begun to explore the offering of blockchain applications through its new, Azure platform. Last month, the tech giant also announced the launch of new features that would be tailored to clients using public blockchains such as Ethereum.

 

Interested in ICOs Legislation in Malta? Contact us directly on +356 20103020 or by email at [email protected] to find out more.

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