Life before the cloud meant that most data storage solutions were decentralized and hosted on on-site servers. That local presence means more control for the enterprise, but it creates problems with scalability and efficiency. For this reason, many companies have been switching to the cloud. Indeed, there are many benefits to cloud adoption in terms of scalability, flexibility, data storage, reliability, cost-effectiveness, uptime, and others. Still, one of the downsides has traditionally been security because cloud security requires an enterprise to rely on third parties to secure private, sensitive data. For this reason, Blockchain could be a more affordable and efficient technology to use for security purposes.
It’s not surprising then that many companies have begun to make the switch towards cloud computing instead. After all, it’s much more flexible and cost-effective, giving organizations access to incredible value and allowing them to replicate their data across a range of data centers, offering redundancy and reliable uptime solutions. Of course, with all the benefits cloud computing has to offer, there are some downsides too. Whenever we use a cloud service, we need to put a significant amount of trust in third parties to keep our most private and sensitive data secure. To understand Blockchain’s potential applications within the business world, one must understand what makes this technology unique. When it comes to trading and buying Bitcoins, Blockchain allows people to manage their cryptocurrencies with transparency and security because every time something is changed on that Blockchain, the ledger records the alteration for the entire public network to see.
Blockchain Security Challenges
Blockchain technology is evolving, and many technical advances have been made to keep user data private. Even so, there are still legal and compliance issues, such as Art. 17 of the GDPR or “the right to be forgotten.” This article challenges the way data is stored across blockchain networks.
Basically, If you store data on-chain, you cannot comply with data regulations because the data becomes immoveable, which is the point of a blockchain. In addition, there is a much greater need to track what data is shared with whom and the point at which that data is shared. There is also a need to know if access is granted or revoked because of the increasing regulations governing personal data and privacy. This permission layer will move to the Blockchain, and that, in turn, will have implications for cloud provider business models.
There is some healthy skepticism being expressed about the use of Blockchain for data security because a blockchain for data storage only functions as a ledger that ensures no one has changed the data. The other issue with blockchain technology for data storage is that the distributed ledger method Blockchain utilizes is inefficient for general data storage and not for large databases requiring a high transaction rate. The other thing in favor of current cloud storage centers is that they still retain several economic benefits over Blockchain-based storage solutions, such as economies of scale.
Even so, many proponents of blockchain technology believe that in the future, everything will be tracked on the Blockchain. Is Blockchain the ultimate solution? Only time will tell.