When so many technologies are available in the market it becomes really difficult for organizations to decide on an ideal technology that suits their business. Well! In this modern technology world, organizations are trying out the latest technologies for their business, and it has been noticed that cloud computing and blockchain technology are in the highest demand.
A Quick Glance at Cloud Computing and Blockchain Technology
By now, you must know about cloud computing, which makes use of remote servers to manage, store, and process data, rather than relying on a local server or personal computer. Computers are no more involved in the heavy lifting of data storage or operating bulky software than they were in decades past. At the same time, blockchain technology ensures data protection and coherence without third-party involvement. This technology can do many things with complete security and speed.
The Common Disparity Between the Two Technologies
Although both technologies are in equal demand, there is still a distinct disparity between them. When it comes to the records of ledger databases, Blockchain technology is immutable, whereas the data stored in cloud computing is mutable.
Working of a Blockchain
Usually, people become familiar with blockchain when they search for a bitcoin wallet or for information about investment predictions. Bitcoin used this technology for a large number of transactions, with each transaction recorded in a hash/node, encrypted, and verified. This process requires computing power that hosts blockchain rather than a server. Once a transaction is verified and encrypted, it cannot be altered further, since there is no single server. The process involves powerful computing capability to generate currency.
This technology cuts out the risk of any technical transaction or fraud while maintaining transparency in an elastic way for multiple users. The three most valuable concepts in this technology are blocks, miners, and nodes.
Working of Cloud Computing
There is an image about cloud computing with the caption, "The cloud is just somebody else's computer." Well! This is not true; it is merely a powerful server, not someone's computer. Cloud is exceptionally known for its computing power and storage capabilities that a computer cannot match. Cloud computing is well-known among businesses, regardless of whether they are small or big because it is on a powerful server that is powerful enough to handle complex processes. Organizations are making a move from the traditional computing architecture to the latest cloud-based architecture, as computing services include intelligence, analytics, servers, software, networking, storage, and much more over the internet. Computing services provide efficient utilization of resources with rapid innovation.
Cloud Computing in Contrast with Blockchain
After having good knowledge about both technologies we can now go through the differences between the two.
- Cloud computing follows a traditional database structure, in which the data is stored in the machines of participants. At the same time, in the case of blockchain, it is a completely reliable online database registry of various digital transactions that is incorruptible.
- Cloud computing is cyberspace where we can access data online via the internet, while blockchain makes use of different encryption styles and hashes for storing data in databases, as it is an encrypted system.
- Cloud provides services in three major formats: Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and Software as a Service (SaaS). Blockchain, however, is a technological advancement that is a decentralized, distributed ledger for maintaining records and does not provide any services.
- Cloud does not give assurance of complete integrity and tamper-free data but blockchain assures prevention of data tempering that too without relying on third-party trusted centralized authority.
- In the case of the cloud, the data and its existence can be public or private and it can be visible or kept hidden from users. However, in the case of blockchain, transparency is its core feature.
- Cloud computing has a centralized structure to fetch data and it can easily push the working of blockchain technology-based projects but at the same time blockchain has a feature of decentralization that does not allow it to store any information in one space.
Companies Associated with Cloud and Blockchain
It is important to mention that projects such as Bitcoin, Quorum, Ethereum, and Hyperledger Fabric make use of blockchain technology, while renowned organizations like Google, IBM, Amazon Web Services, Microsoft, and Alibaba Cloud offer cloud computing services.
Hurdles with Blockchain as compared to Cloud
One of the obstacles faced by blockchain is the difficulty in scaling up, due to limitations in scalability. Additionally, the cost of using blockchain is an issue, as many calculations are required to create a block/hash. Moreover, two blockchains cannot yet work together and interoperability is still a hurdle.
Switching to Blockchain or Cloud?
Still, facing a mental dilemma to choose the right technology for your business? You can make a choice between cloud computing and blockchain after knowing both technologies in detail. Switching to blockchain assures you of security, as there is only one server. For all those who deal in businesses involving the storage of personal and financial information, blockchain should be considered, as it tends to be a good selling point for customers.
In the case of cloud computing, it is slightly at risk, especially when banks/eCommerce make use of this technology to store confidential information about users. There is a risk of violation of the information, and this is highly vulnerable. To put it in easy words, if you have a requirement for quick processing then going for the cloud would be a good decision. Opting for a hybrid system is the best option, as blockchain is good for storing data as well as financial transactions while the cloud is equally beneficial for all kinds of computing needs.
Also, if there is further advancement of the technology and the scalability issues are addressed, then blockchain may take over the system while displacing cloud computing. The crux is that if you want to grow your business, adopting blockchain and the cloud to carry out different tasks in an efficient way can be the smartest move.
There is no doubt about it that blockchain and cloud computing are changing the traditional computing works. Slowly and steadily, they are playing an important role in the organizations while gaining momentum in different areas like application development, online transaction and other associated services. Changes are being accepted by businesses, as every business wants to make maximum profit by making use of the best technology that suits their requirement. Cloud being a well-designed model can easily push blockchain projects but the merger of cloud and blockchain is still in the early development phase.
After going through the above-mentioned details of these two technologies by now you must be knowing the working of blockchain and cloud. The decision is completely yours to choose the right technology that fits your business. It is advisable to hire an AI or Blockchain development company that has the expertise to help businesses learn more about these two technologies and make the best decision to ensure that the right technology is chosen for your business.
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