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Blockchain, Featured, Technology

Is Blockchain-based Cloud Computing the Future?

With the onset of COVID-19, cloud computing helped enterprises survive, with employees working from remote locations. An approximate 94% of enterprises use cloud services in 2021. While all this sounds good, security issues still pose a serious risk. The solution to these concerns- Blockchain-based Cloud Computing.

Cloud Computing

The digital age stands on the exchange of data. By 2025, the market value of cloud marketing will be worth an estimated $832.1 billion.

Cloud service providers offer businesses online storage, with additional features for a price. Simply stated, it allows users to access data saved in remote servers. A secure internet connection is necessary to retrieve the data. Depending upon the type of features provided, cloud computing services are further divided into IaaS, PaaS, and SaaS.

Drawbacks of Cloud Computing


3 out of 4 enterprises cite cloud security as one of their utmost concerns. Almost half (47%) of the enterprises store both work data and regular data on public storage. Rather than hackers, 88% of data security breaches can be traced to human errors by employees.

To ring bells further, a significant percentage of cybersecurity specialists express worries regarding:

  • Wrong configuration of cloud infrastructure.
  • Unauthorized access.
  • Insecure Application Programming Interface(API).
  • Accounts, services, or traffic hijacking.
  • External Data Sharing.


Owing to its nature, cloud computing presents difficulties for research. Downtime, or halts in the cloud server for maintenance, restricted time, or network issues, occur from time to time. Thus, it is unreliable for research purposes.
Other obstacles include issues related to:

  • Compliance.
  • Service Level Agreements.
  • Cloud Data Management.
  • Data Encryption.
  • Interoperability.

Additional Drawbacks

Cloud computing also suffers the following setbacks:

  • Limited control at the user end.
  • Network dependency.
  • Absence of legal liability from vendor end.

Blockchain as a Security Solution

On integration with cloud computing, the decentralized nature of a blockchain network eliminates most of the cloud’s security issues. the technology has countless real-world applications- banking, cryptocurrency, health, supply chain, and even national security.
In terms of security, a blockchain cloud will divide user data into small fragments. This happens as a result of different blockchain features(hashing, key encryption, and decentralized transaction ledgers). As there are only small bits, intruders can not gain access to the entire data. Also, the ledger is available across all nodes. If the user tries to retrieve data, all data fragments are first authenticated. The miner with altered fragments is removed, and the user can retrieve the entire file from the remaining identical ledger copies.

Also Read: Blockchain Fortification to Enforce Border Security

Blockchain-based Cloud Computing 

Delving a bit deeper, we notice that blockchain also augments the following features:


Public clouds restrict internal communication. On integration with blockchain, clouds acquire node characteristics. On the other hand, blockchains allow internodal communication. Ledgers record transactions while nodes store updated copies. This has two benefits. The first is an increase in transparency. The second plus point- enterprises can add ‘n’ number of networks while keeping the data accessible, like always. 

Data Encryption

There is a significant buzz regarding the integrity of data uploaded on the cloud. Decryption occurs before data uploading. Node members grant the necessary authorization to maintain the blockchain’s integrity. Also, copies of the data are made and placed in each network node. This persistent approach optimizes data availability and validity. A notable use of high-security data encryption can be seen in PayBito. It is a digital assets exchange run by global blockchain development specialists HashCash Consultants.  

Service Level Agreements

Almost all agreements favor cloud service providers. Blockchain’s smart contract tech empowers the user with self-executable programs on the fulfillment of conditions. This way, a smart contract builds trust between parties who are completely unaware of each other’s existence.

Cloud Data Management

Organizing things kept in cloud data storage is a tedious task. On the contrary, a blockchain network is all about organization and strict adherence to compliances. Hash keys trace and validate data through each passing block. Elasticity comes into play, as the blockchain users maintain anonymity.

Also Read: Where Does Blockchain Stand in the Mainstream?

Can it be a potential gamechanger?

Global expenditure in cloud infrastructure touched $41.8 billion by Q1, 2021- a 35% growth within a year’s span. Studies also suggest the blockchain market will scale $57 billion, at a 69.4% CAGR within 2019-2025.
Combining two of the most disruptive technologies has the potential to transform the entire global marketplace. Shared cloud storage networks, improved security, and interoperability will usher in another IT revolution.



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