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:
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.
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 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.
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.
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.
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.
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.
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