„Blockchains, the basis of the next world“ – Microsoft’s strange blockchain project on Xbox
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Blockchain or centralized database? – With the new euphoria that is beginning to surround the cryptosphere, what is amicably nicknamed the „blockchain bullshit“ is once again making headlines. Ernst & Young and Microsoft announce that a blockchain Bitcoin Code will allow Xbox game partners, and artists in general, to better manage their copyright contracts.
Automated copyright payments
In a press release issued on December 24, Ernst & Young LLP (EY) and Microsoft announced that they have extended the solution based on Microsoft’s Azure blockchain for the management and collection of copyright.
The two companies explain that this expanded solution will reduce processing time by 99%, with near real-time copyright calculation.
The blockchain application would then be able to process 2 million transactions per day, or just over 23 transactions per second.
This update concerns Microsoft’s Xbox video game industry, but also its network of artists, musicians, writers and other content creators.
During this commissioning, we were able to generate the first round of partner payments using blockchain technology and smart contracts. This extended solution will streamline financial and operational processes (…). We look forward to continuing to extend this solution to our entire copyright payment ecosystem, improving our processes and continuing our journey into modern finance. »
Luke Fewel, Managing Director of Global Financial Operations at Microsoft
Blockchain, transparency, AI: a dangerous triad
This improvement to the Microsoft Azure solution is based in particular on the digitisation of contracts for faster copyright creation thanks to artificial intelligence (AI).
The proprietary blockchain allows for the „transparent“ management of copyright statements and invoices and facilitates their tracking. Paul Brody, Global Head of EY’s Blockchain business, says: „The benefits are so great that we’re looking forward to seeing the benefits of this new technology in the future:
„Blockchains could well become the glue that digitises the interactions between companies. This commissioning represents another major step in this direction, by extending the level of automation and optimising processing time throughout the process (…)“.
In conclusion, it should be remembered that Microsoft’s Azure blockchain is not public, but is closely managed by Microsoft and its partners. On this type of consortium blockchain, the counterparty risk is very real, as are the threats to privacy and respect for personal data.