The development of cloud-based computing moved the world for software developers. Above all, it canceled limits concerned to storage, flexibility, and cost. It also marked a new era of software innovation, enabling the development of fundamentally new cloud-based services like Dropbox and Google Drive. In recent years, although, a technology with even more innovative potential has attracted the developers that is blockchain. The blockchain is what the cloud was always supposed to be — a truly transparent and interlocking network that excludes the need for a centralized transnational authority and resolves for the cloud’s most troubling security risks. Has been the best transnational support with centralized data sets having vast reach of data security. Blockchain really is a cloud 2.0.
Decentralization VS Integrity
Right now corporations massively rely on the dedicated server infrastructure and cloud solutions like AWS, Microsoft Azure,Google, etc. But the business landscape doesn’t stand still. It becomes heavy structured and decentralizes day after day, which requires a decent level of flexibility from big companies.
In the modern world whether you’re a big corporation or a small DIY maker you’re still dependent on a supply chain spread across the globe. Adding to this mess security precautions and notary legalizations and you can imagine what a document nightmare big corporations are facing day after day.
Naturally, business is looking for better document management solutions and blockchain is here to help.
What is Blockchain Technology?
Blockchain is a document with a specific structure. Cloud computing is a service or framework in where you utilize compute power and pay for what you use.
Blockchain and blockchain network may be part of a cloud computing service. Amazon and Microsoft offer blockchain as a service. However, blockchain offered as a service defines the purpose of the most important use case of a blockchain: Doing transactions without a central third party.
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A blockchain itself is just a list of blocks sequentially linked and interconnected by the time of creation. The first blog created in 1 may be linked to the second created day later, and so on. Each block has three data values: a hash pointer (this number links block to a previous one), a timestamp (date of creation/modification), and a transactional data itself (amount of money/document info).
Currently several blockchains exist that run decentralized application platforms or “dApps”. According to market cap, the 3 most notable are Ethereum, EOS, and Tron.
Decentralized applications that run on a blockchain offer a number of benefits that may be advantageous to consumers over applications that run on cloud computing services.
- User ownership of data. In decentralized applications the ownership of the data can remain within the user invoking the transaction. This is becoming more important in a world where we see video game items sell for hundreds of dollars.
- Client side authentication. The user is proves the identity of blockchain powered applications – not the server. Since no single source stores credentials, no massive username/password that’s why leaks are eliminated.
- Transparency & Accountability. You can see every action taken on a public blockchain application. To compare the “cloud based application” where admin who can incorrectly modify details about your account without recourse.
Advantages of Blockchain Technology
Unlike the traditional database architecture (including cloud), where data is stored on a centralized server, blockchain is stored on machines of all participants. Each computer in the network stores calculates and applies changes to the blockchain. Such decentralized architecture makes blockchain stronger the more computers in the network. Therefore, if someone forges/erases data from one machine, many others still have the same copy of blockchain to protect the authenticity of the information stored in it.
Banks and corporations spend billions of dollars to protect and maintain their server infrastructure, while still having leaks and virus attacks like WannaCry. By applying blockchain to the corporate network, which consists of thousands of computers, a company can gain stable and unbreakable system.
Accessibility & Confidentiality
Certainly, storing valuable data on every machine in the office is not a good idea if you have some corporate secrets. Therefore, blockchain encrypts each transaction data file.
After data encryption took place, an owner gets two keys: public key (used to view the document) and private key (used to modify the document). It must be acknowledged that without encryption keys, all files will be only an unstructured mess of bytes, which effectively protect information and secrets in it. This way anyone in the company can access any file at any time, while only an owner can allow someone to view the file.
On the other hand, from the confidentiality point of view, blockchain technology has no advantage over a centralized database architecture. They both can use sophisticated encryption algorithms. Moreover, centralized databases can be completely disconnected from the network and external world.
Legal Transaction Facilitation
- Document forgery protection.
- Confirmation of data ownership without showing actual data.
- Protection against plagiarism by applying document timestamping.
By having such a unique set of features blockchain can effectively replace paid notary services. Think of it as a distributed ledger where blockchain can be used instead of third-party intermediaries that are usually used to make legal agreements and verify them.
Sadly, but duplicating all the data and storing it on multiple computers also drains a lot of energy and storage space. Especially if you want to store videos, images, and heavy-weight pdf manuals. By now, a centralized server infrastructure is the only reasonable solution for such type of content.
For instance, we prefer using Amazon Web Services (AWS). AWS is reasonably priced and offers a wide range of services like Load Balancing service that redistributes loads between servers, or EC2 which dynamically moves data to the instances (Europe to Europe, China to China) depending on where demand occurs. We also suggest using cloud services for high-loaded mobile apps like Drophook.
But if we’re talking about private messages, text documents, or any kind of certificates, this is where blockchain shows at its best. Here’s a simple example.
Back in 2016 Yahoo has turned off its Messenger which happened to be a convenient communication tool for all oil traders since 1998. One of Yahoo’s unique features was the ability to store messaging history, which really helps when your college suddenly changes the price.
Guess who took advantage of this opportunity? The insider company called CME, which introduced its Pivot message system. It wasn’t unique though but has trade tickets and open messaging features. Sadly, a new messenger could be 10 times more appealing if was based on blockchain technology.
It is also worth mentioning a new paradigm in massive computing that is rising over the horizon. It envisions a tide goes back from cloud computing to decentralized computing performed by end-devices.
And it’s not so crazy as it sounds. The theory states that new machines like autonomous cars, robots, the Internet of Things, and drones require far higher computing speed than any wireless connection can sustain. The future of such machines is already here and it won’t wait for wireless networks to develop. It will take the simplest path: get back from cloud computing to on-the-ground (edge) computing. Peter Levine, a general partner at venture capital firm Andreessen Horowitz, and other tech companies are beginning to recognize the upcoming shift.
How Blockchain Is Solving Business Problems and Shaping The Evolution of Web 3.0
The number of high-productive computing devices is already far beyond the number of human beings living on the planet. So why not to use this distributed computing powers to supplement future services, in particular, blockchain-based services. This approach can fundamentally change how business optimizes its running costs and make companies more agile in their decisions. Instead of being overwhelmed by infrastructure edge computing and blockchain would allow the business to work on new ideas rather than maintenance of itself.
In the current 4th Industrial Revolution technologies are changing instantly and every day there is a new update in every technology. Highlighting the major importance of each technology that could be beneficial for choosing and will lead to brighter prospects and good pay in 2020.
Blockchain Technology is going to give a new spark to future technologies. This technology is expected to generate $3.1 trillion in business value by 2030, according to a Gartner Report. It will be the main ingredient for business people in all different domains and especially in Customer Relationship Management (CRM) because it is considered to be the core part of any organization which intends to maintain a healthy relationship with its users. Details could be found on how Blockchain Can Help Businesses Build Better CRM Solutions.
Blockchain will revolutionize business processes in many sectors in the future. Big Tech companies like IBM, Walmart have invested heavily in this technology. We can see more examples of successful blockchain technology implementation by 2021.
- Cross-border payments, in common sense, is a multistep process that includes a lot of mediators and it’s pretty costly (fee for worldwide payments is around 7%). Blockchain facilitates the process by eliminating all middlemen, and lengthy procedures, therefore reduce time delays. Once a transaction recorded, the payment is instantly transferred to the receiving party. Since the transaction can’t be reversed or changed, it also ensures better accountability and security.
- Accountability issues with traditional contracts and agreements. We use to go through a multi-step process with several parties and routine paperwork which takes a lot of time. Blockchains allow us to use a Smart Contract is basically a few lines of codes that you can store on a Blockchain. A smart contract provides transparency and faster settlement.
- Blockchain helps manage and protecting patient data in health care organizations with transparency.
- Prevent corruption in funds and crowdfunds and introduces real-time tracking and immutable solutions.
- In case of costly supply chain management, it helps to prevent fraud with a real-time view and increase revenue.
- And more
Over the years, cloud computing has established a new benchmark in Information Technology. It is getting massive popularity in the current era. Cloud computing is considered to be a comprehensive technology that has a major impact on the IT industry. Looking towards the health tech Cloud Computing Can Help Hospitals Build A Robust Patient Management System. The global healthcare cloud computing market is expected to hit $35 billion by 2022, with an annualized growth rate of 11.6%.
Cloud computing of the next decade will be more revolutionized and the dominant factor will be edge computing. It is ready to create a new hype in the market with a bright future ahead.
The choice of the right innovative technology will take your business to the new heights while making mistakes will cost you because every state-of-the-art technology comes with some of the benefits and disadvantages.
Don't know what technology to choose for your business?