What is Blockchain in Cloud Computing you may wonder, so today, we are going to explain exactly that in this quick thorough guide.
Have you ever found yourself wondering about how cloud computing works and what it has to do with blockchain? Or like “What is decentralized cloud computing?” and “Is blockchain a cloud technology?” Well, don’t worry about it; we have got you all covered up.
Think about this for a moment, the cloud is incorporated deep into all the functions and processes in the businesses. You’ll find cloud computing everywhere, from watching Netflix to exchanging daily emails, and it’s the base.
Blockchain is another technological innovation used all around the world. It has made the storage, transactions, and business processes more consistent, faster, and safer. Want to know the best part? These two astonishing technologies complement each other.
Imagine what it would be like to integrate blockchain in cloud computing. You’ll be able to enjoy the benefits of both worlds at the same time.
Are you curious to know about blockchain cloud computing or want to know how it’s going to work? In this article, you’ll be getting answers to all your queries. So, without wasting your time, let’s jump right in.
The Amazing World of Blockchain
For a very long period, all the activities happening on the internet have been controlled and managed by a central source. This central source is also referred to as the third party.
For example, if you want to deposit some money into your friend’s account, you need the bank’s assistance to carry out the transaction. And for that purpose, the bank charges you a decent amount of service charges.
Imagine what it would be like if there is no need for the banks or any central control? Think about it for a moment, what an extraordinary revolution it would be. This change is what Blockchain intended to bring to this world. And, it has achieved great success so far in this initiative.
The simplest words to describe Blockchain are “decentralized ledgers.” As the name suggests, Blockchain refers to a chain of blocks, each block contains data. And, each block has a unique hash that defines its identity along with the data.
Apart from the Genesis Block (the first block in the chain), every other block stores the previous block’s hash as well. These hashes can be understood like unique fingerprints.
The Secret of Impermeable Security of Blockchain
What makes this technology a hot property in the world of technology is its imperishable security and reliability. For this purpose, Blockchain implements different security layers. Let’s explore them.
The Never-Ending Hash Puzzle
Now, just imagine if you are on a mission to change the data residing in a block. When you try to change the data, the hash of that block alters as well. Conversely, the hashes of all the upcoming hashes also change and become invalid.
Hence, you need to change the hashes of each and every block starting from the last one. That will take you a few hundred years to complete the task.
Need the Vote
It gets only better with an added layer of security. Let’s see what it is. Every user inside a Blockchain network holds a copy of the Blockchain. So, if someone wants to make a change in his copy of the Blockchain, it’s not gonna happen.
To make it happen, that individual needs to share the block with everyone in the network and ask them for permission. If the majority of the users vote against it, considering that the person is trying to tamper with the data, the request to make amendments will be rejected. So, Blockchain is as safe as it can get.
But have you ever asked yourself whether Blockchain is a Cloud Technology or not? Let’s explore.
Blockchain-as-a-service (BaaS) is an enterprise-level platform service that helps build a secure and stable blockchain environment.
Being a third-party creation service, it allows business customers to build and host their own blockchain applications and smart contracts on their own blockchain. It also allows the cloud-based IT services to manage all the essential activities to keep the infrastructure operational.
That’s not it; BaaS is a substantial development and an indispensable milestone in the blockchain landscape that leads to the extensive adoption of blockchain technology worldwide.
How Does the BaaS Model Work?
Ok, I know after learning about the Blockchain-as-a-Service Model, the next thing that comes to your mind is “how it works”, right? Well, here’s the step-by-step process.
The customer signs up for a BaaS contract with a cloud-based service provider. They basically enter into an agreement where the Blockchain-as-a-Service partner settles to set up all the essential Blockchain technology along with infrastructure and charges a service fee defined in the contract agreement.
Then, the BaaS partner on behalf of the customer organizes the indispensable resources and leverages the essential technology and infrastructure. It is done to set up and maintain the Blockchain connected nodes.
On the basis of the requirements of the customer’s business, the Blockchain-as-a-service partner may perhaps align the Blockchain network on any distributed ledgers like Ethereum, Bitcoin, R3 Corda, Quorum, Chain Core or BlockApps. Also, the BaaS partner takes on the accountability of upholding all the vital Blockchain-related artifacts and keeping the infrastructure operational.
But wait, there’s more! The BaaS contracts also comprise the activities like bandwidth management, resource optimization, occurrence management, monitoring system’s health, along with active security surveillance like inhibition of hacking attempts.
But the bottom line is that by using BaaS, the customers can pay heed to their core business operations and competition strategies, depending on BaaS partners to keep their blockchain infrastructure running.
Challenges in the Way
Well, guys, everything comes with both its pros and cons. Like every other technology, BaaS also faces a few critical challenges in its way. Let’s see what they are.
- Due to the nature of the Blockchain, it’s almost impossible for companies to keep a check on it.
- Blockchain is an emerging technology, and many businesses are not fully equipped with its comprehensive understanding. So, the investment of such businesses can be at stake, and there is a risk of failure if they implement the decisions made with half-baked knowledge of blockchain technology.
- At the moment, BaaS is provided only by a few giant organizations. So, the BaaS provided by different organizations are very much similar to one another.
- Also, the demand for BaaS has not hit a high yet. The reason is that the world is still just getting aware of this technology, and it will take time for them to adopt its uses.
- Last but not least, such a large-scale decentralized system might not be sustainable yet. It requires an enormous capital cost and high power hardware.
Why Integrating Blockchain to Cloud Computing is Massive?
Now, you might wonder what is the application of blockchain in cloud computing what are the future possibilities for it.
Blockchain incorporated in cloud computing provides a plethora of advantages. So, let’s get down to it.
- Blockchain technology is safer, and there is not even a single node of failure because if one node goes down, it has nothing to do with other nodes.
- Integrating blockchain technology in cloud computing allows users to outsource their computing needs. But, it alters transitional cloud computing due to its decentralized nature. Hence, the decentralized cloud computing blockchain will enable customers to access the Internet without relying on any infrastructure or server.
- Blockchain’s decentralization, transparency, and security make it a significant technology for cloud storage current period of decentralized clouds.
Does Cryptocurrency Use Cloud computing?
Ok, I know that you must be curious about the use of cloud computing in cryptocurrency. Let’s see what it’s all about.
Different cloud services like Amazon Web Services (ASW) can be used in cryptocurrency. How? Well, cryptocurrencies are generated through a process called crypto mining.
This process needs ultra-power hardware for operation. So, ASW or other cloud services can mine cryptocurrencies using their hardware. But, this process takes loads of energy to operate. Hence, the cost and benefit analysis won’t allow these companies to go for crypto mining.
So, a much better approach from these companies would be to allow their users to mine by using their services. The users will get their profit, and the company will get their share. So, it’s a win-win situation for both.
Which is better: Cloud Computing or Blockchain?
Are you confused between Blockchain and Cloud Computing for your transactions and computing purposes? Let’s go through a brief comparison between them to give a verdict.
- The biggest concern with using cloud computing is security. And Blockchain, as we know, is free of security concerns, and assures you tamper-free data.
- However, operating Blockchain requires greater cost and time as compared to Cloud Computing.
- The data in Cloud Computing is mutable. Whereas in Blockchain, there is no way to modify any sort of data.
All in all, both Blockchain and Cloud computing come with their own positives and negatives. To sum it up, the best way is to adopt a hybrid system. Use Blockchain for your transactions and Cloud Computing for computational purposes.
But, does blockchain need cloud to operate with it? The way Blockchain is growing, some consider it a threat to Cloud Computing. They think that it’s a perfect technology to replace Blockchain. Is it really so? Let’s check it out.
Will Blockchain Replace Cloud Computing?
Well, Blockchain and Cloud Computing both have their own position in this innovative world. So, I reckon that Blockchain will not wholly take over Cloud Computing. But, the future of the internet lies in a fusion of Blockchain and Cloud Computing.
The Final Verdict
To conclude all the discussion, Blockchain and Cloud Computing have been the two revolutionary technologies in the world of technology. Now, it’s time for another massive jump in technology with the integration of Blockchain in Cloud Computing.
In this piece of writing, we have told you how Blockchain and Cloud Computing work together and how they stand in each other’s comparison. We hope that all your questions are answered.