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Amazon Web Services (NASDAQ: AMZN.NASDAQ), the tech giant’s cloud computing arm, signed an agreement with Kaleido, a recently launched start-up, to begin work on a blockchain-based cloud service, CNBC reported on Tuesday. Kaleido aims to give Amazon’s customers an "easy button" to get into the same technology that underpins Bitcoin (Bitcoin: BITCOIN).

Why it is important

  1. Last year, Amazon made a lot of moves to enter the cryptocurrency market. The new agreement is one more step of the company towards blockchain. Amazon’s appearance on the market can potentially hurt IBM (NYSE: IBM), currently considered to be the leader in the corporate blockchain services market.

"They can focus on their scenario and they don't have to become PhDs is cryptography, we give them a simple platform to build their company on blockchain," said Steve Cerveny, one of the co-founders of Kaleido.

The first "blockchain-as-a-service" solution is already available on the AWS marketplace, which offers customers a subscription to cloud computing platforms.

Joseph Lubin, co-founder of Ethereum, said that this agreement is huge step for the IT giant in the blockchain sector:

"Three years ago we were getting calls from companies trying to spell blockchain and trying to order one in a color because their boss told them they should get a blockchain," Lubin said. "At this point there are tens of thousands of companies around the world that have real sophistication around this."

Previously, AWS introduced a template service for the convenient launch of blocking networks based on the Ethereum and Hyperledger Fabric protocols.

By Nadya Astam

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