Blockchain is considered to not be restricted to cryptocurrencies anymore, but is seemingly finding its way towards enterprise use cases. From what it’s understood, cloud computing is also a growing integral for business technology. Although believed to be nascent, experts feel that both the technologies can offer something more if combined with each other. “I believe blockchain can strengthen cloud computing by enhancing security, transparency and overall trust. It can enable decentralised cloud storage, boost identity management, automate contracts, ensure data integrity, and improve supply chain tracking,” Edul Patel, CEO, Mudrex, a crypto-investing platform, told FE TransformX.
What can the technologies offer, when integrated?
Going by market reports, a blockchain-oriented cloud computing platform can ensure storage for the blockchain’s copies on every node of the network. Upon inclusion of a new transaction, the updated data gets sent to all the available nodes. It’s believed that a blockchain-oriented cloud computing approach allows for a decentralised way of data management. While blockchain enables a distributed ledger to keep track of records, cloud computing provides data access over the Internet for all kinds of platforms. Reportedly, cloud computing has been criticised for being subjected to data hacks, while blockchain is held to be immutable in nature. In that context, suggestions have been made for amalgamation of both the technologies as blockchain can grow cloud computing prospects.
In terms of blockchain-oriented cloud computing, benefits associated with the hybrid approach towards the technologies include checking of every transaction to ensure fraud prevention, reduction of third parties to increase the speed of processing transactions, increase in the bandwidth of users and transactions, ensure traceability for corporations to protect delicate information, and fall in administrative expenses and energy consumption. Market data has shown that sectors which can take advantage of blockchain-oriented cloud computing solutions are banking, real estate, healthcare, supply chain, among others.
“I think organisations can reap the benefits of scalability, reliability, security, and cost efficiency by employing cloud computing capabilities while building a decentralised network using blockchain technology. The combination of blockchain with cloud should allow for the creation of distributed applications that do not rely on a centralised source of control, giving organisations greater control over their data and computing resources,” Sujit Patel, MD and CEO, Orbus Infotech Pvt Ltd, a data-based private limited company, highlighted.
How do the numbers add up?
According to Statista, a data and business intelligence platform, the global count of Internet of Things’ (IoT) appliances is expected to clock 29 billion by 2030. It’s believed that this data has been attributed to blockchain-oriented cloud computing that is considered close to Cloud of Things (CoT), which is referred to as the interrelationship between the Internet and physical objects. Data from Revelo, an online talent platform, showed that global expenses for blockchain solutions has exceeded the $6.6 billion mark, which has seemingly upheld the technology finding its way into the cloud computing landscape.
Global digital transformation market is expected to reach $695.5 billion by 2023 and should clock $3144.9 billion by 2030, at a 24.1% compound annual growth rate (CAGR), reveals data from Research and Markets, a market research firm. Market researchers have stated that the data can be correlated with the growth of cutting-edge digital technologies, including artificial intelligence (AI), big data and analytics, machine learning (ML), cloud computing, blockchain, social media management, and mobility.
In terms of cloud-based data breaches, 45% of the total number of data hacks happen to be of that nature, according to International Business Machines (IBM). A survey published by Snyk, a cybersecurity company, showed that 80% of corporations have been at the receiving end of around one cloud security hack in the previous year, while 27% of organisations facing a public cloud security breach. In that context, blockchain can be an element in bolstering cybersecurity and other cloud-oriented services, as a survey by Deloitte, an audit firm, showed 86% of the respondents’ belief that blockchain can better our approach towards business technology and its mechanisms. Insights from other Deloitte polls showed 86% of technological teams having faith in blockchain, while 68% of executives having the belief that data security and privacy should be improved the most to develop blockchain adoption.
“I foresee a future for blockchain in cloud computing. With the demand for secure and transparent cloud services, blockchain’s role should continue to grow. Blockchain is expected to revolutionise data security, offering immutable records to safeguard critical information in the cloud. This synergy between blockchain and cloud computing should promise a future of heightened security, efficiency, and innovation,” Sandeep Kumar, AVP, Compunnel Inc, a digital native technology company, concluded.
