Microsoft has announced upcoming plans to exploit Quorum, a private blockchain technology platform derived from Ethereum, to manage royalty payments in the future.
The announcement, according to Forbes, signals a clear intention by Microsoft to proceed with a smart contracts-based solution for managing the administrative and legal complexities surrounding digital rights management.
Private Enterprise Blockchain Technology on the Rise
The development appears to be part of a wider trend signalling the increased use of private, enterprise-grade blockchain technology – notably Quorum itself – within established industry, leaving some market analysts to conclude that public blockchain technology such as Ethereum will likely emerge as a preference for smaller business entities only.
In May, J.P. Morgan Chase, the US’ largest bank and one of the top ten banking institutions world-wide, announced its decision to file for a blockchain-based cross-border payments solution in another move which signalled wider adoption of blockchain technology within the banking sector.
Whilst the adoption of private blockchain technology has been on the increase, the idea of a private blockchain itself has been criticised by some, including leading blockchain advocate Andreas Antonopolous who has suggested that open blockchain technology – because of its more natural exposure to hacking attempts – will remain more resistant to security concerns. “If it ain’t open, it ain’t worth sh*t,” Antonopolous has previously stated.
I’m reclaiming the word “Blockchain”, but using it with a qualifier:
If it ain’t open, it ain’t worth shit
— Andreas M. Antonopoulos (@aantonop) May 9, 2016