As blockchain deployments increase, cloud-based infrastructure will account for most of them. In this regard, the infrastructure provided through cloud computing and IT teams will play a key role in making this technology a corporate reality.

Talking about Blockchain takes us directly to the well-known Bitcoin currency and the concept of cryptocurrencies, where a digital means of exchange uses cryptography to protect the processes involved in generating coins and carrying out transactions. Cryptocurrencies are a subset of digital currencies and as such have no physical representation. They are used in online or in-person transactions with any vendors that accept them.

How Cryptocurrencies and Blockchain Work

Cryptocurrency transactions, such as Bitcoin, are carried out through encrypted hash codes in a peer-to-peer network. Each user's digital wallet stores all the addresses from which he sends and receives cryptocurrencies.

As for the Blockchain, as a support structure for cryptocurrencies, it maintains a permanent and inviolable record of transactional data. A blockchain works as a decentralized database that is managed by computers belonging to the same peer-to-peer (P2P) network, all in a broad concept.

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Blockchain applications are currently being explored in many industries as a secure and cost-effective way to create and manage a distributed database and keep records of digital transactions of all kinds.

There are several benefits regarding the use of Blockchain. Security is considered one of the main advantages of this technology. It is nearly impossible to corrupt a Blockchain. That's because information is shared and continually reconciled across thousands, even millions of computers. Blockchain does not have a single point of failure. If one node goes down, it's not a problem because all other nodes have a copy of users, wallets and transactions.

Blockchain integrated with cloud computing

With interest in blockchain increasing far beyond the financial sector, cloud computing is set to drive all of this. The distribution and services sector, which includes retail and professional services, will spend $510 million on blockchain this year alone, according to IDC estimates. The banking sector will be responsible for expenditures equivalent to US$754 million in 2018.

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As companies look to implement solutions based on blockchain technology, a close correlation with cloud computing emerges. These are opportunities aimed at modernizing the IT infrastructure, in addition to the use of various existing resources, such as data sharing and distributed computing.

Other widely known benefits of cloud infrastructure, such as scalability and access to on-demand computing, also apply to blockchain deployment and all solutions that will be based on this technology.

Finally, it is worth noting that cloud infrastructure is a much better choice than relying on any type of traditional data infrastructure. It is the guarantee for the security of transactions and customer data, in addition to high availability for many innovative solutions that will be built in the future.

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Written by

Sky.One Team

This content was produced by SkyOne's team of cloud and digital transformation experts.