Long before tech giants like Amazon and Google began offering cloud computing services, storage was very much a decentralized process, with companies hosting servers in their own offices. This required in-house IT specialists to set up and manage servers as well as investment in off-site backups for redundancy. Although this allowed for more control, it was extremely costly.
Cloud computing technology was introduced to revolutionize business computing. By switching to solutions such as Amazon Web Services, companies now pay less and are guaranteed reliable uptime and redundancy.
Despite improved service, efficiency and convenience for companies all over the world, the best is yet to come. Over the next few years, Blockchain technology is set to overhaul the entire cloud computing industry.
What is Blockchain?
Best known as the technology that powers Bitcoin, Blockchain is a distributed ledger - or database - that cryptographically records and executes transactions. The system can also be used as a decentralized storage network.
How does the Blockchain Storage Marketplace Work?
Blockchain expert Gilad Somjen explains: "Hosts can sell storage space to renters enabling them to upload their data and make payments. Files are always encrypted and split into fragments which are dispersed across nodes around the world.
"This system is a cheaper and more reliable cloud storage system compared to what traditional solutions offer."
Gilad Somjen. PR
What Benefits does Blockchain Offer over Cloud Computing?
Decentralization and RedundancyMost cloud services achieve redundancy by distributing files across regional data centers. A failure in synchronizing these data centers can potentially lead to connectivity or latency issues, giving rise to more disruptions. With a decentralized Blockchain, however, data is stored on several individual nodes, which are intelligently dispersed around the world. This leaves no room for disruptions or failures and provides resistance to external attacks.
When using a cloud service, data remains unencrypted. Third parties constantly have access to your most sensitive and private data. This is not the case with Blockchain. Third parties have no access to or control over user files. Blockchain stores data in a distributed and encrypted form, meaning only users themselves can control their keys.
Unlike most cloud services, which cost around $25 per terabyte per month, Blockchain storage generally costs just $2 per terabyte per month, because each host incurs only small costs. Blockchain will always be cheaper than big-name cloud companies like Amazon, which will always need to deliver profits.
The ledger in which data is stored and distributed can be made visible and public. This provides a transparent view of historical changes, facts or events. This is reassuring for CIOs who want to be certain of accountability and verifiability if something goes wrong during the process. Blockchain technology is clearly expanding beyond the use of Bitcoin. It's no longer perceived only as the future of payments and trading - Blockchain is now being implemented in various industries to speed up all kinds of processes, while improving security and accuracy in data storage and distribution. It won't be long before blockchain storage technology completely replaces existing cloud computing infrastructures. As Gilad Somjen puts it: "This technology is a multi-billion Dollar endeavor and one that is set to take the computing world by storm."