Blockchain Applications and Their Benefits in Cloud Computing
Some of the reasons that blockchain technology has quickly become so popular are that it offers great security, it’s decentralized, and it provides excellent transparency. While bitcoin is probably the most well-known example of something built using blockchain technology, there are quite a few other uses, and those in industry are finding new applications all the time for it. Nowadays, one of its most promising uses is in the area of combining blockchain with cloud computing, and it has even given rise to an entirely new industry, now recognized as the Cloud of Things.
Blockchain-based cloud computing on the Cloud of Things is capable of processing enormous amounts of data very quickly, and it can manage an unlimited number of documents economically and efficiently. Needless to say, this kind of technology has tremendous appeal for those in industry who have a need for having huge amounts of data managed and analyzed quickly. This helps to support data-driven decision-making, and can help your business compete with all rivals.
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Benefits of blockchain cloud computing
There are some considerable benefits associated with blockchain technology on the cloud, and some of the most important advantages are described below:
Decentralization – devices which are connected to the Internet of Things don’t really have to check in with centralized servers for any kind of decision-making. Using the example of a biometric recognition node, there will be encrypted biometric data for all authorized personnel, and the node will only need to verify with servers when no matches are found. Each node will be self-operational, unless some kind of verification of updates is available and useful. When multiple copies of a biometrics database are being used, they can be pushed to the edge because cloud storage is not only geographically diverse, but it’s much faster and easier to access all official copies of the database.
Ownership tracking – with the joining of blockchain technology to cloud computing, a number of new opportunities have been created. There can be much better management of stock ownership, legal agreements, and real estate titles, for instance. The clearance process can be radically improved by implementing a cloud computing solution which manages a Hyperledger system. In today’s business world, transfers are usually carried out by a depository trust company, a process requiring anywhere from three to six days before it’s completed. Using a Hyperledger blockchain with cloud storage, the same kind of transfers can be accomplished in seconds and possibly even microseconds.
Better data security – since there is end-to-end encryption on blockchain technology, all data will be kept secure while being stored or in transit. By implementing blockchain with a cloud computing network, you’ll have a triple layer of security as well as peer-to-peer copies. Distributed data storage is far superior to a central data storage model, because it has a much lower risk of data corruption or compromise. That’s because blockchain data files are broken down into miniscule bits and are always encrypted for security’s sake. In addition, the encrypted bits are stored across multiple nodes, generally in locations that are geographically diverse.
Better private key security – one of the major risks of encrypted data is having to protect private keys against theft or unauthorized access. In cloud computing, it becomes necessary to authorize an encryption transaction as well as a decryption transaction. Private keys can be protected much better when implemented in a cloud computing environment that makes use of double-step verification for transaction authorization. If even greater security is necessary, it will be possible to configure your cloud computing so as to verify biometric recognition as part of your mandatory identification process.
Fault tolerance – it’s very easy to replicate your blockchain data across a server network, provided that there is tight interconnection on the collaborating clouds. This goes a long way toward reducing failure risk for single nodes or servers, and if there is any kind of disruption, the network can still provide uninterrupted services. That means you have additional fault tolerance available to you when using blockchain and cloud computing.
Permanent audit trail – blockchain allows you to make permanent transaction records, and you’ll always have proof of history when using blockchain technology. This provides a time record to the cloud computing network that requires no trust from any users on the network. You’ll have a permanent and robust audit trail of all transactions on the blockchain, and the proof of history function offers a timestamp which is permanent and is available for all transaction data.
Faster disaster recovery – there are always several authorized users in blockchain transactions, because the blockchain itself is public and is distributed among users. If a particular network node has some kind of issue or if it fails altogether, there will be no impact to any other copy of the blockchain. All other nodes will continue operating, and the blockchain will be appropriately updated even if multiple nodes are down. Any failure on a given node can be overcome as soon as the node gets restored and returns to an online status.
Scalability – scalability is one of the most useful functions of blockchain networks and applications. Using blockchain technology, there will be no problem executing multiple transactions speedily, while also making use of all services associated with the blockchain. For instance, you will be able to take advantage of all computing resources on demand to carry out any necessary operations on the blockchain. By combining cloud computing with blockchain, you’ll have a tightly integrated system that is capable of scaling up or down whenever the need should arise.
Blockchain Applications and Their Benefits in Cloud Computing