Cloud and blockchain: a synergy for secure and scalable solutions

By Dvs Shiv Kumar (pictured), Cloud Solutions Architect APAC at OVHcloud

Blockchain is a decentralised digital ledger that records transactions across multiple high performance servers. Using a network of distributed participants, also known as nodes, blockchain can validate transactions and keep data secure without one central authority. The data in each transaction is then stored in ‘blocks’ that are linked together to form a chain, with each block containing a cryptographic hash of the previous block. This makes the data tamper-proof and immutable, while also providing a transparent view of the entire transaction.

The benefits of blockchain technology are most widely associated with the cryptocurrency world, but it has the potential to unlock economic benefits across other industries such as healthcare, financial services and the supply chain too. But whilst the potential of blockchain is exciting, businesses must first take care of how they set up their cloud technology to ensure it can be integrated into existing tech systems in a secure and transparent way.

So what are the key features of blockchain technology – and how can organisations safely leverage blockchain decentralised applications through the cloud?  

Blockchain’s benefits across industries

The benefits of blockchain technology are far-reaching. It can allow for paperwork reduction, increases in efficiency and other financial benefits. But the way that the technology is utilised for specific applications or processes varies across industries.

In the financial sector, blockchain technology has helped to eliminate paperwork by offering fast processing and end-to-end visibility on transactions, whilst also providing security benefits and reducing fraud. In healthcare, blockchain has been leveraged to provide better privacy for patient records while simultaneously supporting the secure transfer of sensitive information between healthcare workers. For governments, blockchain is helping to streamline processes, eliminating fraud and improving trust through decentralised identity.

All these use cases build transparency, security and efficiency within organisations. However, the increasing pressure for businesses to leverage blockchain technology has left some rushing towards implementation without proper consideration of security risks beforehand.

What to consider before leveraging blockchain in the cloud 

Leveraging blockchain technology within the cloud involves integrating the decentralised, transparent, and immutable features of blockchain with the scalable and accessible nature of cloud computing. 

Although the technology offers many benefits, it also comes with certain risks that businesses need to be aware of. For example, the explosion in popularity of blockchain networks has simultaneously opened doors for businesses and cyber actors alike. Malicious actors may take advantage of rushed and underprepared blockchain deployments.

Before any form of implementation, businesses looking to take advantage of blockchain must ensure that they can carry out the following:

• Defend against DDoS attacks – Alternatively known as distributed denial of service, DDoS attacks are a type of cyber-attack that overwhelms a server with traffic. Often, these attacks can exhaust a network and its resources. Using anti-DDoS protections will help with keeping a business’s operations running smoothly.
• Host terabytes of data – With greater compute power, comes great responsibility. A public Ethereum full-node can take up to 12 TB of data – an extraordinary amount for any small to medium enterprise to host. Ensuring that businesses can do so will ensure the smooth implementation of blockchain technology.
• Run a powerful cloud – Implementing any kind of blockchain technology will often call for a high-performance throughput. Businesses will need to partner with a cloud provider that has the speed and performance required to maintain blockchain networks.
• Web3 readiness – Finding the right blockchain storage service can help make mundane tasks, such as running an IPFS node, into an efficient and seamless process.

To accelerate the ability of any business to run blockchain on the cloud, IT teams should consider partnering with a trusted provider that is equipped with an appropriate hosting environment and up-to-standard hardware and software services.

Summary 

By partnering with a cloud provider that can offer both hybrid and multi-cloud solutions, businesses can streamline the implementation process of blockchain technology. High-performance computing on bare-metal servers can help solve the challenges that large data processing can pose. High-grade, purpose-built servers can provide the power and memory a business needs to help implement blockchain technology into its day-to-day. Many providers can also offer scalable solutions, allowing businesses to grow without worrying about infrastructure limitations.

But most importantly, an experienced and trusted cloud provider will also ensure robust security measures are in place, protecting sensitive data and transactions from potential breaches. By staying updated with the latest security standards and regulatory requirements, they ensure an organisation’s blockchain applications remain compliant and secure – meaning the technology can be leveraged confidently, with peace of mind that data and operations are well protected.