Amazon Web Services (AWS) has launched templates for Ethereum and the Hyperledger Fabric.
The templates are supposed to help blockchain developers get their platforms up and running fast, AWS announced. The hope at Amazon (NASDAQ: AMZN) is to drive more business to AWS by allowing users to run Ethereum Smart contracts, ERC20 Protocol cryptocurrencies, Ethereum marketplaces, and other solutions in the company’s cloud.
The ERC20 protocol would be one of the biggest moneymakers here because it is the most popular solution for building cryptocurrencies. Most of the 210 active initial cryptocurrency offerings in the market use the ERC20 protocol. On 12 January 2018, Medium contributor AdmiCad estimated that 91.2% of the cryptocurrency Market Capitalization was composed of Ethereum-based tokens.
This means that Ethereum projects intended to tap mass markets such as Opiria, Bancor, Bitminutes, SALT, BAAB, and Restart Energy would be able to operate on AWS. The hope at Amazon is to cash in on the ERC20 and initial cryptocurrency offering (NYSE:ICO) booms.
Building Blockchain Networks in Amazon Web Services
Amazon wants to attract this business by adding what amounts to a “build your own blockchain network kit” to AWS. There are currently two kits posted on the AWS website.
The Ethereum kit allows the construction of AWS platforms that offer direct contact with the Ethereum network and use Ethereum’s Solidarity Smart Contract language. The Hyperledger Fabric kit allows users to write their own blockchain applications.
Potential uses for such blockchain solutions outlined by AWS include supply chain, healthcare, insurance, the Internet of Things (IoT), financial services, and supply chain. The kit reportedly uses an open-chain blockchain fabric from the Hyperledger Foundation.
Interestingly enough, neither Amazon nor AWS is apparently a member of the Hyperledger Foundation; the Linux Foundation sponsored group that created Hyperledger. Amazon’s name and logo are absent from the official Hyperledger list of members.
Amazon is not planning to Accept Ethereum
Amazon does not appear to be planning to accept Ethereum (NYSE:ETH) payments even though it is now publicly working with Ethereum.
My guess is that Amazon will accept no cryptocurrency as long as regulators like the Federal Reserve Bank of India are restricting altcoin payments. Instead, Amazon will keep operating on a strict fiat-currency basis, and force cryptocurrency users to purchase gift cards from Gyft and eGifter to shop its site.
Amazon will accept those gift cards but it wants nothing to do with cryptocurrency at the present moment. Although it is entirely Amazon will start accepting Ripple (XRP) in Japan at some point because some Japanese banks are planning to accept Ripple payments. Ripple can also be converted directly into fiat currencies.
Amazon will only accept Ethereum (ETH) payments when central banks recognize Ethereum or start using it. There are a few efforts to integrate Ethereum with central banks out there; including the Jibrel Network (JNT), BABB (NYSE:BAX) and Bancor (BNT). No central bank has publicly accepted Ethereum, although the People’s Bank of China (PBOC) is conducting a lot of research into cryptocurrency.
Expect to see AWS become a major player in blockchain hosting, but do not expect to see Amazon accept Ethereum ETH payments anytime soon. Oracle (NYSE: ORC) and IBM (NYSE: IBM) are planning their own blockchain-hosting solutions, TechCrunch reported.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.