Blockchain Technology in Cloud Computing: Sense, Advantages, and Examples
Most consider the blockchain to be used only in cryptocurrencies, but this technology has already gone much further and supplies options for business digitization. Combining it with cloud computing opens up many prospects for companies, such as a significant increase in efficiency and profit.
The technology is actively evolving, and its implementation can be pretty tricky but no less attractive. After reading this material, you can learn more about blockchain technology in cloud computing, its integration, and the opportunities it will bring to your business.
How Blockchain Is Used in Cloud Computing
To explore the possibilities of technology and how it can be used, we must first deepen into its essence.
Blockchain is one of the methods of distributed data storage. The technology was invented in 2008 as a ledger for the world’s first cryptocurrency, bitcoin. Blockchain is essentially a chain of blocks. In each of these blocks, one or another information is registered in digital format. Regarding cryptocurrencies, this is transaction information (date and time of block creation, address, etc.).
The main difference between a blockchain and conventional databases is decentralization. Firstly, this process is not monitored by any regulator or organization. And secondly, the data is not concentrated on servers in one spot but distributed in a vast network of computers worldwide.
Each new transaction, regardless of size, becomes a new hashed cluster. It contains a unique set of symbols and numbers created according to a specific algorithm. The latest block always refers to the previous one, thus creating a strict sequence.
The Dissimilarity Between Blockchain and Cloud
Blockchain and cloud computing perform similar functions but have fundamental differences:
- The cloud delivers real-time access to data from cyberspace. Blockchain is an encrypted system for storage in secure databases.
- Blockchain hasn’t any services as it is a repository. Contrariwise, the cloud suggests three forms: platform as a service (PaaS), software as a service (SaaS), and infrastructure as a service (IaaS).
- In terms of protection, the blockchain is significantly superior as it ensures the prevention of data forgery, while the cloud cannot protect it completely.
- Unlike centralized cloud computing, blockchain is a decentralized system and does not keep all data in one location.
- Cloud data is often stored on devices with parties involved. Blockchain, conversely, is an online database.
How Blockchain Can Change Cloud Computing
Blockchain can solve numerous shortcomings of cloud computing. Here is how it is possible:
Increased safeness. Cloud computing is weak to confidential data leaks. However, by adding blockchain technology, databases’ protection will rise significantly due to encryption.
Improved visibility. An advantage of the blockchain is its transparency. Its decentralized model implies greater visibility of all actions and the impossibility of subsequent data changes in the blockchain.
Simplified tracking. Information about who, where, and when uses the blockchain is easy to track. In addition, they are protected from exposure to a particular computer and remain intact under any circumstances.
Exclusion of third parties. By implementing blockchain technology, you can no longer hinge on cloud computing vendors since all management will be done using codes.
The Usefulness of Blockchain in Cloud Computing
Utilizing blockchain in cloud computing has many benefits, especially data safety and control. So it’s time to examine all the merits more thoroughly.
Enhanced data protection: The blockchain utilizes point-to-point encryption, which makes it possible to save all transaction data. In addition, peer-to-peer based on the distribution of peer nodes provides a more increased protection level. A decentralized repository, in turn, protects data from possible leakage.
Decentralization: A feature of decentralized data storage is the absence of a single server. Instead, each affected computer is a “server,” and distributed copies are constantly synchronized. Furthermore, every newly added block is written to all existing databases. Thus, a user cannot affect the performance of the blockchain in any way.
Simplified Recovering: The blockchain records each transaction and saves all copies in the public domain. Thanks to this, if the data is data lost, it can be quickly restored when the node reconnects to the network.
Blockchain Usage in Various Industries
For a more detailed interpretation of why you might need blockchain implementation, let’s examine how it can solve everyday challenges.
Healthcare: Medical institutions handle sensitive information. In addition, many still use centralized systems, which sometimes provoke data loss. Blockchain technology can cope with this problem by significantly increasing security.
Logistics: Supply chains operate with big data to guarantee stable and efficient function. Blockchain solutions in software logistics make it much easier to maintain track of critical processes, enhance security and speed of delivery, and increase your income.
Banking: One of the most time-consuming financial operations remains international transfers due to many checks. Blockchain can securely speed up financial transfer by using a distributed ledger.
Real Estate: Blockchain will also be helpful in real estate trading. Solutions based on this technology allows to significantly speed up and facilitate all processes and lower intermediaries and the chance of fraud.
How Blockchain is Implementing in Cloud Computing
And so, after you understand the possibilities that the blockchain represents, let’s figure out how its implementation takes place. However, before you start, you should decide on some critical points:
- First, determine what result you achieve by implementing this technology and the main terms to reach this goal.
- Analyze your database. For practical use, all data arrays must be structured, and all vain data must be extracted.
- Select the cloud model that suits you best to implement the blockchain: it can be private, public, or hybrid.
- It is also essential to pick the best architecture for your blockchain solution. Experts recommend choosing a microservices-based architecture, as it will provide greater scalability.
An experienced technical expert will help you decide on each of the mentioned points and bring your project to life, so finding and choosing him is an essential step in development. Three hiring models are most common now: outstaffing or staff augmentation, in-house team, and outsourcing companies.
However, the latter option has been most popular in recent years, which is understandable. Software development outsourcing provides many services for developing and implementing various software and experienced professionals in multiple fields. At the same time, offshore companies can provide high quality for an affordable price.
After you decide on a development partner, you can start building your blockchain solution tailored to your demands and based on your chosen technologies. When the blockchain system is created, the developers will implement it in all business processes.
The cooperation with the software provider does not end there. Blockchain technology is quite complex, so it requires multi-level support and periodic updates. It is also necessary to consider some of the issues that you may encounter when developing and implementing blockchain technology:
- Blockchain technology is considered relatively new so you may lack experienced specialists in this field. In addition, the need for skilled developers is enormous now.
- Another significant issue is the sophistication of the blockchain. Its implementation requires substantial expenditures on computing equipment and human capital.
- Although the technology’s security level is high, without good management, the blockchain can allow particular vulnerabilities such as data loss.
A qualified software vendor will help you develop an efficient and protected blockchain-based solution despite these difficulties.
Who Is Enforcing Blockchain in Cloud Computing
Although blockchain technology was widely used not long ago, some top cloud service providers are already actively using this technology. Let’s get to know them.
Amazon Managed Blockchain is a supreme vendor of blockchain-to-cloud integration services. They deliver a supervised tool for management through open-source DLT environments. In addition, the service can be scaled to meet the requirements of multiple applications and significantly reduce costs.
Quorum Blockchain Service (QBS) is another fully-controlled platform. The service allows you to design and run blockchain networks, organize them in the future, and offers many open-source tools.
Oracle Blockchain Platform is a cloud service that is an open-source platform based on Hyperledger Fabric. Operating it, you can easily create blockchain technology apps and use all its advantages. In addition, the service is top-rated due to its integration with other Oracle apps.
Blockchain is a modern technology that is rapidly capturing more and more industries. Its implementation today helps to significantly improve data security, simplify many tasks and grow business. Also, it is still considered innovative, so you can be one step ahead of your competitors by implementing it.