Blockchain and cloud computing are two industries that have experienced exponential growth. Firstly, cloud computing provides services over the internet without the need for active user management.
This unmatched convenience has led to platforms such as youtube and Gmail garnering millions of users.
Similarly, blockchain has also made strides. After all, it provides a democratic experience while enabling full ownership of data. This is evident in Bitcoin and Ethereum with their rapid price appreciation.
But you may be wondering. How can blockchain improve cloud computing?
Don’t worry. In this article, I will be answering that question and much more. So without further ado, let’s jump right in.
What is blockchain cloud computing?
Blockchain cloud computing is a process that utilizes a decentralized network of computers to provide cloud services. Users access data over the internet with no direct management. This data is stored and displayed on a distributed ledger.
Benefits of blockchain cloud computing
One of the largest pitfalls of conventional cloud computing is the loss of data and services. Ultimately, it relies on a centralized server for data management and security.
This creates a single point of failure and therefore if this fails the whole network fails. Conversely, blockchain cloud computing is decentralized. As result, there is not a single point of failure.
If one of the nodes in the network suffers downtime the network is still operational as it is secured by other nodes that also store a copy of the ledger.
Moreover, data in blockchain cloud services is cryptographically secured using various encryption methods.
Thanks to blockchain technology there is a full audit trail. A complete history of the data transfers is recorded. This streamlines the auditing process while reducing costs.
Also as businesses have a full account of data transfers they can allocate resources more effectively. Not to mention, it increases trust among consumers, stakeholders, and corporations.
All in all, blockchain cloud computing is censorship resistant. This is because they are governed by code and data transfers are exchanged peer to peer.
Essentially, the removal of the third party facilitates a permissionless system that anyone can participate. Trust is placed in the code.
Data on the blockchain is immutable meaning it cannot be removed or edited. Consequently, this creates an honest system free from manipulation.
With traditional cloud computing services, the provider owns your data. They can utilize and profit from this data as they see fit.
Conversely, blockchain allows the self-custody of data. Users can decide which data they disclose and they can trade it on the open market.
The main disadvantage of blockchain technology is it provides less scalability. To put it into context, the second largest blockchain platform Ethereum has less than 25 TPS.
Ultimately, changes to the distributed ledger need to be propagated across the whole network and processed by each node.
Conversely, cloud computing utilizes a more centralized architecture with servers. This allows greater scalability as there is a central authority that has extensive computational resources at its disposal.
Not to mention, there is little friction when proposing upgrades as there are fewer participants governing the platform.
Whereas, blockchain relies on a large number of participants coordinating together. Often in different geographical locations and time zones.
As the data on the blockchain is transparent this can lead to various privacy issues. For instance, businesses can exploit competitive information to predict stock prices and market movements.
Moreover, scammers can leverage sensitive information for social engineering and hacks. Therefore, it is important to implement privacy solutions and vetting may be required.
Best cloud computing cryptocurrency
Ankr is a cloud computing cryptocurrency that aims to harness idle computing power from data servers. Ankr pays cloud computing service providers for their surplus capacity which they then rent out to users.
This not only improves overall efficiency for business but also provides a new revenue stream. Furthermore, it reduces the overall cloud computing costs for consumers.
Ankr is currently the 148th largest cryptocurrency with a market cap of over $200,000 million. It can be purchased on any of the major exchanges.
Is cloud computing the same as blockchain?
Cloud computing is not the same as blockchain. Essentially, cloud computing is a service that only requires the internet to access. Whereas, blockchain is a technology that utilizes a decentralized web of computers to secure a distributed ledger.
Can blockchain replace cloud computing?
Blockchain will integrate with cloud computing rather than replace it. In the future, they will merge to create a more democratic and transparent solution.
As you can see, blockchain technology improves cloud computing significantly. At the end of the day, it provides a more democratic and honest system with greater security.
That being said, it is not without its issues. Scalability can be a bottleneck and privacy is a concern. However, as the technology continues to develop it will only improve.
I hope you found this article useful and thanks for reading it.
Want to learn about how blockchain will change supply chains? Click here to read my previous article.