Blockchain technology has been a disruptive force in the age of digital transformation. According to Statista Research, global spending on blockchain solutions is expected to reach $19 billion by 2024.
While blockchain has gained notoriety through cryptocurrency, the technology is used by many businesses across all industries. In a recent study by TechRepublic Research, 64% of professionals said they expect blockchain to affect their industry in some way, with most expecting the impact to be positive. Blockchain is an extremely complex field of technology that is constantly evolving and changing because blockchains are built on thousands of nodes and new nodes are constantly being added to a chainthey require an enormous amount of overall computing power to support. Mr. Raman Sharma, Vice President of Product Marketing at DigitalOcean in a discussion with CXOToday shares his detailed ideas on the same subject.
- How Does Blockchain Fit Into Cloud Computing?
A blockchain is basically a database system that uses “blocks” to store data in a decentralized way. These blocks of data are stored on thousands of distributed nodes, which run on servers or other machines with computing power. When cloud computing is integrated with blockchain technology, it provides advanced solutions to address cloud computing challenges related to decentralization, data privacy, and network security. Blockchain technology is used in cloud computing, allowing users to outsource their computing needs. Blockchain could change the way cloud computing works due to its decentralized nature. Thus, users access the Internet and perform peer-to-peer computations without depending on servers or other infrastructure. It is also beneficial for cloud storage as it helps keep data secure and tamper-proof.
- What should founders keep in mind when setting up their blockchain business? Especially start-ups and SMEs because they have limited resources?
Whether or not to adopt blockchain for your startup is not just a technical decision but a business decision. As a founder, it is important not to get bogged down in hype, but to diligently analyze its potential from a business perspective, even in cases where a well-defined problem exists. While the unique properties of blockchain have forced startup founders to view it as an essential and transformative technology, the main consideration should define your goals for implementing blockchain. When looking for a cloud provider for your blockchain business, consider CPU considerations, availability considerations, scalability considerations, and usability considerations.
While blockchain helps provide more transparency by creating a decentralized and distributed model of trust, it is important to assess the return on investment that will come from its implementation.
- How do you overcome the challenges of the technology stack required and the need for cloud infrastructure?
Companies considering moving their workloads to the cloud must use digital principles and capabilities not only to leverage the cloud, but also to overcome the risk of business uncertainty to refocus on changing business models. . Choosing the right technology stack becomes important not only because it will last the lifetime of a business, but also because it will bring benefits by allowing us to build and maintain applications on time. Therefore, the stack one chooses should be strong, flexible and scalable.
The components must work together to achieve the desired results, both upstream and downstream of the application. Although the stack may vary from company to company, organizations should start with server and cloud services, operating systems, programming languages, database management systems, and performance monitoring services.
- How to take advantage of the right technical skills in blockchain?
Blockchain developers have many roles and responsibilities. They can be responsible for the blockchain network, the applications running on that network, or a combination of both. They may also participate in the design of blockchain networks and applications, the analysis of existing systems, and the evaluation of new technologies. But the essential skills required are:
- The person must have an excellent understanding of blockchain technology
- They should have a solid understanding of cryptography and security principles
- They should have experience with distributed systems and peer-to-peer networks
- They must have knowledge of smart contracts
- There should be familiarity with algorithms and data structures
- As chains grow in the blockchain and scaling is still a concern, so what approach should founders take to address this issue?
As your blockchain network grows, chains also grow naturally over time. Destroying and creating servers to supplement chain growth would be significantly disruptive. Therefore, one should consider choosing a cloud provider that allows them to scale servers. Since blockchain services often have to grow in response to demand, consider choosing a cloud partner that provides a transparent pricing model and helps you understand what the costs are for different levels of demand.
- What solutions does DigitalOcean have to offer in the blockchain space?
We understand that blockchain businesses need reliable, cost-effective IT solutions that can scale quickly as needs change. Therefore, we provide all the infrastructure solutions needed by blockchain builders, from compute to managed Kubernetes. Our Droplets are the perfect solution for blockchain businesses looking to get started quickly on a flexible cloud hosting solution. We have a simple and easy to use API and CLI, which makes it easy to scale automatically as the blockchain grows.
We also provide an extensive library of documentation and in-depth tutorials to ensure users have all the knowledge they need to build and host their own blockchain business and help them get their networks up and running in minutes.
- Can you share use cases or examples of how blockchain companies are leveraging DigitalOcean?
DigitalOcean’s simple and inexpensive Droplet VMs have proven to be a great fit for the needs of blockchain businesses. We have companies from various industries using DigitalOcean’s cloud services to run their blockchain networks and serve thousands of users around the world.