When Blockchain and Cloud Computing Integrate

As blockchain deployments increase, cloud-based infrastructure will be responsible for the majority of them. In this respect, the infrastructure provided through cloud computing and IT teams will play a key role in making this technology a corporate reality.

Cloud April 26, 2018 4 min read By: Skyone

Talking about Blockchain directly brings to mind the well-known Bitcoin currency and the concept of cryptocurrencies, where a digital medium of exchange uses cryptography to protect the processes involved in generating coins and carrying out transactions. Cryptocurrencies are a subset of digital currencies and, as such, have no physical representation. They are used in online or in-person transactions with any vendors who accept them.

How cryptocurrencies and Blockchain work

Cryptocurrency transactions, such as Bitcoin, are carried out using encrypted hash codes on a peer-to-peer network. Each user's digital wallet stores all the addresses from which they send and receive cryptocurrencies.

Regarding Blockchain, as a supporting structure for cryptocurrencies, it maintains a permanent and inviolable record of transactional data. A blockchain functions as a decentralized database that is managed by computers belonging to the same peer-to-peer (P2P) network, all within a broad concept.

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Currently, blockchain applications are being explored in many sectors as a secure and cost-effective way to create and manage a distributed database and maintain records of digital transactions of all kinds.

There are several benefits to using Blockchain. Security is considered one of the main advantages of this technology. It is almost impossible to corrupt a Blockchain. This is because information is shared and continuously reconciled by thousands, even millions of computers. The blockchain does not have a single point of failure. If a node becomes inactive, it is not a problem because all other nodes have a copy of users, wallets, and transactions.

Blockchain integrated with cloud computing

With interest in blockchain growing, extending far beyond the financial sector, cloud computing is expected to drive all of this. The distribution and services sector, which includes retail and professional services, will spend $510 million on blockchain this year alone, according to IDC estimates. The banking sector will account for the equivalent of $754 million in spending in 2018.

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As companies seek to implement solutions based on blockchain technology, a close correlation emerges with cloud computing. These are opportunities aimed at modernizing IT infrastructure, as well as utilizing various existing resources, such as data sharing and distributed computing.

Other widely known benefits of cloud infrastructure, such as scalability and access to on-demand computing, also apply to blockchain deployment and all solutions based on this technology.

Finally, it's worth highlighting that cloud infrastructure is a much better choice than relying on any type of traditional data infrastructure. It guarantees the security of customer transactions and data, as well as high availability for many innovative solutions that will be built in the future.