Blockchain keeps revolutionizing the world of digital transactions. It provides a public ledger that records transactions between two parties. To keep the financial exchanges secure, it uses cryptography (simply put, protocols that prevent third persons from accessing records). The transactions are contained in blocks which can only be identified with a cryptographic hash. This makes it more difficult to tamper with data.
Cloud computing has also become popular among businesses as it is cost-effective, provides more agility and the cloud providers take on the full responsibility of the infrastructure maintenance. As cloud consultants from Tricension in Kansas City point out, cloud services offer also very powerful computing tools and facilitate the processing of big data. Moreover, they provide a much more reliable backup system than the traditional solutions.
How do the two technologies affect each other and how can blockchain improve cloud computing services?
To use the cloud computing services, clients usually need to sign a Service Level Agreement with the provider, which will specify the appropriate use of cloud resources. Since Blockchain is a great solution for traceability and transparency, it can make sure that both parties fulfill the agreement provisions and it will be able to determine responsibility in case of a dispute between the two. With the use of Blockchain technology every step in the transaction can be traced back and verified.
As Blockchain uses encryption of files, it eliminates the possibility of tampering with data. Thus it reduces the risk of fraud and misuse. Users can be positive that their data stays safe and is not going to be sold to a third party or altered without their knowledge.
One of the reasons Blockchain has become so popular is the fact that it eliminates the necessity for a third party while carrying out transactions. Since it can monitor contract compliance, protect against fraud and is able to manage financial transactions, in many cases it can fully substitute the role of an intermediary.