Why Blockchain is Cloud 2.0: Expert Take

Why Blockchain is Cloud 2.0: Expert Take
Cryptocurrency can act as a bartering system that enhances the delivery of Internet technologies and applications.

In our Expert Takes, opinion leaders from inside and outside the crypto industry express their views, share their experience and give professional advice. Expert Takes cover everything from Blockchain technology and ICO funding to taxation, regulation and cryptocurrency adoption by different sectors of the economy.

If you would like to contribute an Expert Take, please email your ideas and CV to [email protected]

Cloud innovation was responsible for creating a near-trillion dollar ecosystem. But that was just the first step. Blockchain is the logical next iteration of computing.

Cloud was the first move away from centralization. Companies needed to store files and access processing power for applications with ample network bandwidth to accommodate day-long use. However, server rooms required maintenance, constant security, proper provisioning and regular updates. By moving servers offsite (or into the cloud), companies could expand their operations beyond the shackles of hardware.

Today, companies can spin up offices virtually anywhere and even hire remote workers with ease. Computers and smartphones are simply bridges to more processing power concentrated elsewhere.

Cloud decentralized the workforce

Now, Blockchain is introducing the second iteration of computation structure. Through a distributed ledger system, Blockchain has created networks of computations that are secure, immutable and democratic. This could lead to un-hackable programs and web services, transparent networks and stronger system reliability.

Blockchain decentralizes computation

Blockchains use miners to solve mathematical problems and provide consensus. Mining participants lease their computing power to the Blockchain network in exchange for cryptocurrency rewards. Collectively, they build the network and verify the creation of additional blocks. Groups of miners make up a system of nodes in the network that store and process data. Miners have computing pools around the world that allocate their processing power to:

Keep a full-copy of the Blockchain
Verify and process transactions
Run applications/smart contracts

Ethereum, one of the most popular Blockchain platforms, allows developers to access the Blockchain through the Ethereum Virtual Machine (EVM). The EVM provides developers tools to build decentralized applications or Dapps. These applications use the Blockchain to host their backend processes.

Instead of an application operating on a single server. Dapps are split into fragments,  sort of like a torrent,  and run concurrently. Several computers run bits and pieces of a program with numerous redundancies. These programs make up a command-based ledger that is constantly verifying code. No single computer owns the entire application backend, so it becomes near impossible to hack or corrupt.

Unlike cloud computing, the decentralized Blockchain doesnt need to live in a server room. Cloud applications typically do carry redundancy on a handful of nodes, but nothing close to the thousands of nodes working on networks like Ethereum.

The Cloud moved servers off of enterprise campuses and centralized the processing power elsewhere. Blockchain is slicing up the processing power and scattering it all over the globe.

The potential for Blockchain to harness the computing power of the entire Internet demolishes the fictitious belief that cryptocurrency is without value, a bubble or techs latest fad. The truth is, cryptocurrency can act as a smarter and safer bartering system that enhances the delivery of Internet technologies and applications. With Blockchain, we can create a volunteered network , an internet/cloud 2.0 , that enhances cyber security and lends itself to advancements in computing, AI, IoT and record keeping. Its a multi-trillion dollar solution to issues across all market verticals and we are just scratching the surface.

The views and interpretations in this article are those of the author and do not necessarily represent the views of Cointelegraph.

Ben Noble is a founding partner of MarketBlok, a marketing and PR company for Blockchain technologies. Prior to his crypto work, Ben was an accomplished marketing professional for cloud-based services.

11.03.2018 / 04:50 113
9 Reasons Blockchain Projects Need a General Counsel: Expert Take 9 Reasons Blockchain Projects Need a
After successful ICO, you have a significant enterprise to protect, demanding stakeholders to satisfy, and a challenging product roadmap to deliver
EUs Proposed Digital Tax Doesnt Apply to Fintech Activities: Expert Take EUs Proposed Digital Tax Doesnt Apply
The temporary cross-border tax of one to five percent would apply to digital transactions of companies with revenues above 750 mln euros In our
How Not to Panic If Coinbase is Turning Over Your Info to the IRS: Expert Take How Not to Panic If Coinbase is Turning
Fake documents or lies can make taxpayers problems, that were likely manageable, much worse. In our Expert Takes, opinion leaders from inside and
At Tax Time, Who Really Owns That Crypto Anyway? - Expert Take At Tax Time, Who Really Owns That
IRS marks cryptocurrency as property, it might prompt you to consider the concept of ownership. In our Expert Takes, opinion leaders from inside and
How Cryptocurrency and Blockchain are Changing Philanthropy: Expert Take How Cryptocurrency and Blockchain are
Blockchain-based systems help givers and beneficiaries to interact more directly and improve the reputation of charities Expert Take In our Expert
Comments (0)
Add a comment
Comment on