Kaylie Gyarmathy

By: Kaylie Gyarmathy on May 15th, 2018

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The Relationship Between Blockchain And Data Centers

Data Center

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Blockchain has emerged over the last few years, and though it was originally created for digital currency like Bitcoin, the tech industry has discovered blockchain may be used in other ways. Before we make the connection between blockchain and data centers, let’s take a look at what blockchain is at its core:

As explained by FinTech Weekly , a blockchain stores information about transactions between users, or other changes to its database (conducted without intermediaries), in a way that they can be tracked by any user forever for maximum transparency.

Essentially, blockchain is a digital ledger that cannot be corrupted, typically for economic transactions, but it may also be programmed to record effectively anything of value. The blockchain network — sometimes called a “new internet” — lives in a state of consensus, in that it automatically checks in with itself every 10 minutes, like a self-auditing ecosystem. Each transaction is called a “block.”

Some of the more obvious benefits of having information held on a blockchain as a shared and continually reconciled database:

  • It’s not stored in any single location, and this decentralization means hackers have nothing to corrupt. It also means the records it keeps are public and easily verified.
  • It’s hosted by millions of computers, and the data is accessible to anyone on the internet.

Because a global chain of computers uses blockchain technology to jointly manage the database that records transactions, having no one central authority, the potential for mass collaboration is only now beginning to be understood.

In terms of file storage, blockchain decentralizing this on the internet means that distributed data across the network cannot be hacked or lost. Decentralization here also means there’s potential for file transfers and streaming times to improve, even in the face of an overload and always mounting pool of content and data.

The Relationship Between Blockchain And Data Centers

Data centers are evolving because of an increase in data and users, along with the need for real-time, multi-users data retrieval with high demand for fast transmissions. Data centers are evolving digital infrastructures for cloud services, and the next-generation cloud service will likely include adapting to a blockchain network. Simply put, blockchain can accommodate increasing data processing demands that ensure rapid, seamless, and secure transmission.

Traditionally, enterprise data center infrastructures employed a local client-to-server traffic interaction. For cloud computing to occur, on the other hand, the network traffic is server-to-server dominant. Server-to-server traffic can uphold the demand for greater bandwidth and efficiency to support heavier traffic from an ever-growing user base. In this environment, a client-to-server traffic network gets bogged down when bandwidth is consumed, causing dreaded latency issues. 

The Benefits of Blockchain Data Center Integration

The development of blockchain offers a lot of potential in terms of implementing secure, verifiable transaction-based applications. And this technology seems to address a number of problems with the internet. Blockchain thwarts hackers, reduces concerns about invalid transactions while promoting efficient, fully documented business processes.

  • Authenticity And Transparency
    Data centers are complex systems, and blockchain offers a level of transparency not yet seen with traditional infrastructure. The technology can track, log, and store metrics about the health of your networks. Whether the data is public or private, the blockchains are transparent to permitted participants.
  • Increase Security
    With all the talk of blockchain being public and decentralized, security concerns are rightly expressed. But it must be noted that blockchain has a high degree of security built into the protocol. Blockchain transmits value, and the data is verified by the network and stored everywhere, which thwarts hackers (though, let’s face it, they are working on this).

Especially with the momentum of the Internet of Things and ever-more communications between mobile devices, blockchain data center integration is addressing and correcting problems we see with using the internet now.

Are There Potential Drawbacks To Integrating?

The digital environment is never static, and as technology continues to evolve, so will blockchain. It would be foolhardy to presume that integrating blockchain would mean you’re now and forever immune to cyber attacks or data issues.

  • Continual Monitoring
    Changes to the technology must be continually monitored and issues addressed as they arise. Network security plans should still be updated, perimeters still protected, and employees still trained to safely manage electronic communications.
  • Need For Greater Capabilities
    Right now it may seem like blockchain is revolutionary, but there’s at least one area in need of improvement. Today, you have to validate data quality before it enters the blockchain. So it’s biggest vulnerability lies outside the framework in trusted oracles — a corrupted oracle could lead to problems across the entire network.

These are potential drawbacks, but those can be overcome with the right protections in place for network security measures as well as effective data governance policies.

What does blockchain and data center integration mean for users?

With its increased security, users will have a greater confidence in the protection of data overall. As transactions are recorded chronologically (thereby forming an immutable chain), the transactions can be more or less private, depending on how you are implementing it.

The “ledger” is distributed across multiple participants in the network, where copies exist and are simultaneously updated — every node that participates can verify the true state of ledger and at a very low cost. It’s a better way to share information across systems, allowing for greater efficiency and accuracy.

Though blockchain is still embryonic in terms of data centers and all its potentials in the marketplace, enterprises are moving towards this integration because of the unmatched trust it creates between people and machines, while also creating process efficiencies for transactions and eliminating latency issues known with traditional data center infrastructures.

Ready to learn more about how to get the most from a modern IT infrastructure?

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About Kaylie Gyarmathy

As the Marketing Manager for vXchnge, Kaylie handles the coordination and logistics of tradeshows and events. She is responsible for social media marketing and brand promotion through various outlets. She enjoys developing new ways and events to capture the attention of the vXchnge audience.

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