How Can Blockchain Technology Improve Cloud Computing?

Cloud computing and blockchain technology are the two disruptive technologies that are rapidly evolving and are being used by enterprises worldwide. Many companies use cloud management services and gain advantage of cloud computing technology. Recently blockchain technology is being merged with cloud computing. This is said to disrupt all sectors.

Will blockchain-based cloud computing be the beginning of a new golden era? Before answering this question, we’ll discuss in brief what blockchain is and what cloud computing is.

What is Blockchain?

Blockchain is an online ledger technology that enables data to be stored and transferred on a peer-to-peer basis. It is used without any central authority, thus eliminating the need for trusted third parties. It can be compared to a bank ledger holding transactions.

What is Cloud Computing?

Loopholes of Cloud Computing

According to the survey conducted by Gartner, cloud computing was found to be the top emerging risk for companies.

Organizations, irrespective of its size, are encouraged to apply digital transformation to stay ahead of the competition in the global arena. One of the crucial elements of digital transformation is utilizing cloud computing and cloud management services.

However, due to centralization of cloud services, the information and data stored in the cloud are prone to hacking and breaches.

The Solution?

Decentralization of the cloud computing services can fix the loopholes. And there is no better way than incorporating blockchain in cloud computing technology to do this.

Blockchain solutions have drawn increasing interest over the last few years and are used in almost every industry including supply chain, healthcare, banking, and more. The security of blockchains remains to be the main reason for this.

Any transaction data done using blockchain technology is stored and is hard to remove or modify due to the consensus mechanism of blockchain. Due to a huge number of block-chain nodes, it becomes difficult for the intruder to modify the data.

Benefits of using blockchain technology in cloud computing

1. Decentralization

The blockchain consists of peer-to-peer blocks without the need for the involvement of any third party. It means the blockchain does not rely on a centralized server to store and update multiple systems.

Such decentralization increases transparency, and gives real-time visibility into the data, helping businesses offering supply chain solutions or healthcare solutions to protect information and prevent fraud.

2. Enhanced Data Security

Distributed data storage is far better than a single-point data storage that has a higher risk of a data breach. Under distributed data storage design, the data files are split into pieces that are encrypted and then these pieces are stored in multiple nodes, across many countries.

3. Quick Disaster Recovery

As the transactions are distributed widely to many authorized users, failure of a single network node will not have any impact on the remaining copies of the blockchain.

4. Geo-Independence

Blockchain technology is a distributed data system by design. When it is combined with cloud computing it expands the geographical diversity for increased network resilience.

The Bottom Line

Blockchain-based cloud computing perfectly combines security and scalability. It makes the technology an ideal choice for adding an extra layer of security to the cloud.

Blockchain technology in cloud computing is still in infancy. However, Many new companies have jumped into this new blockchain cloud computing market to enhance the security and streamline the flow of information.

In short, blockchain in cloud computing is expected to revolutionize the way businesses operate.

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