The company said on Thursday that it had developed a system called Coco Framework, which connects to different blockchain networks to solve some of the issues that have slowed down their adoption, including speed and privacy concerns.
Coco, whose names stands for Confidential Consortium, will be ready and made open source by 2018, Microsoft said.
It is currently compatible with Ethereum, one of the most popular types of blockchains and can make it roughly 100 times faster, Microsoft said.
"We expect this to be the foundation for blockchain for enterprise," Mark Russinovich, chieftechnology officer of Azure, Microsoft's cloud computing division, said at a press briefing. "We think blockchain is going to potentially transform every industry."
Large businesses, including many of the world's biggest banks, have been investing in blockchain in the hopes that it can help simplify and reduce the costs of some of their data-heavy processes.
The technology, which first emerged as the system underpinning crypto-currency Bitcoin, is a shared public record of data that is maintained by a network of computers on the Internet. This means every user on a network could potentially have access to all information.
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