When blockchain emerged, developers wouldn’t have imagined it would help make applications. Integrating cloud computing and blockchain technology changes how businesses operate and store data.
Cloud-based infrastructure is known for cost-effectiveness, flexibility, and scalability, while blockchain systems offer security, transparency, and immutability. With these, organizations can create a robust ecosystem.
Blockchain efficiency refers to how well a blockchain network uses its resources to process transactions and maintain integrity. An efficient network will reduce the need for intermediaries in transactions, making them faster and reducing cost. Blockchain scalability, on the other hand, indicates how the network can handle more transactions per second. When there are more users on the network, it should be able to process higher values of transactions without any delays.
Improving efficiency and scalability make blockchain networks speedy and versatile, suitable for diverse use. But how can blockchain applications be made, and how do they enhance efficiency and scalability?
Building and Deploying Blockchain Applications on the Cloud
To build a blockchain application on the cloud, it’s important to take advantage of the cloud-based program’s scalability, which is its ability to handle a growing amount of users without performance issues, and infrastructure to host and manage a decentralized blockchain network. Blockchain applications use shared ledgers to safeguard data and keep transactions clear and transparent.
The first step in building a blockchain app on the cloud is choosing a cloud provider. Some of the major cloud platforms include AWS, Azure, and GCP, which make it easy to set up and manage a blockchain network. For instance, a blockchain system can be useful when creating a crypto trading platform. Blockchains like ICP store data on the chain, which removes the need to choose a cloud provider.
You should also decide on a blockchain protocol, like Ethereum, depending on your app’s needs. You need to consider factors like scalability, speed, privacy, and consensus mechanisms to ensure the protocol you choose aligns with the technical and business goals of your project.
Cloud platforms make it easy to set up and manage blockchain networks. For example, you can quickly deploy blockchain node servers that keep track of transactions across different regions without needing complicated setups. These platforms also offer cloud storage to keep your blockchain data safe, using encryption and access controls to ensure only authorized people can see it.
You can also develop Application Programming Interfaces (APIs) to connect your blockchain app with other tools and services. A good example of this is Stripe’s blockchain API, which makes it possible for blockchain payments to be made on e-commerce stores.
Applications of Cloud-Based Blockchain Systems
Cloud-based blockchain apps can be used in different ways depending on your business’s purpose. One of the most popular applications is supply chain management, where you can use a specially designed app to track the movement of your goods with transparent and tamper-proof records.
Another purpose of cloud-based blockchain apps is to make DeFi platforms for lending, borrowing, and trading. These apps can also be used for digital identity verification by securely managing user identities on a blockchain for Know Your Customer (KYC) processes.
Cloud-based blockchain apps are also suitable for healthcare data management, as businesses can store sensitive patient data while maintaining data integrity. Should this integrity be compromised, the repercussions might be severe; data breaches of private medical information could result in privacy invasions and maybe legal fines.
How Cloud-Based Blockchain Platforms Improve Efficiency
Cloud-based blockchain platforms can enhance efficiency and scalability in different ways, especially given blockchain technology’s decentralized nature. This will eventually streamline operations and reduce administrative overhead across different industries.
Reduces Intermediaries
Blockchain is known for eliminating the need for middlemen and central authorities, as it stores data on a distributed ledger. Fewer intermediaries also lead to faster processing times and reduce transaction costs. This benefit is especially suitable for DeFi apps built on the cloud.
Applies Smart Contracts
Smart contracts are self-executing contracts embedded within the blockchain that can automate complex tasks. They process business logic and allow for the immediate execution of agreements. Manual intervention wouldn’t be needed, as this would automate the entire process.
High Availability and Scalability
Cloud infrastructure also makes it easy for developers to scale the blockchain platform by increasing or decreasing it based on the user base and transaction volume. Meanwhile, blockchain’s distributed nature ensures the data is secure, even if a server fails.
Improves Data Integrity
Blockchain also supports data integrity and transparency through its immutable ledger, making it suitable for cloud-based platforms. It cannot be tampered with or altered, which provides transparency and data accuracy to the app users and developers.
Real-Time Tracking
Blockchain can track assets in real time, making it suitable for finances and supply chain management. You can track assets and transactions across the supply chain, which gives you a full view of the movement of goods and eventually improves operational efficiency.
Enhanced Collaboration
Cloud-based blockchain platforms are also suitable for enhanced collaboration. By providing a shared ledger on a scalable cloud, blockchain makes it easy to conduct transactions between multiple parties, further improving communication and coordination within the team.
The Future of App Development in Blockchain
Blockchain applications, especially those based on the cloud, have become more popular and relevant today. With benefits like scalability, cost-efficiency, and security, cloud-based blockchain platforms can be used for supply chain management, healthcare data, and digital entity verification. The apps often depend on a well-known cloud system and selecting the right blockchain platform. They also drive smart contract development and API integration, providing various uses in the development field.
By Gary Bernstein