Blockchain technology has been a disruptive force in the era of digital transformation. According to Statista Research, worldwide spending on blockchain solutions is expected to grow to $19 billion USD by 2024.
While blockchain has gained notoriety through cryptocurrency, the technology is used by many businesses across industries. In a recent TechRepublic Research study, 64% of professionals said that they expect blockchain to affect their industry in some way, with most expecting the impact to be positive. Blockchain is an extremely complex area 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 chain, they require a huge amount of aggregate computer power to support. Mr. Raman Sharma, VP-Product Marketing at DigitalOcean in a discussion with CXOToday shares his detailed insights on the same.
- How does blockchain integrate with Cloud Computing?
A blockchain is essentially 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 challenges in cloud computing relating 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. So, users access the Internet and perform peer-to-peer calculations without relying on servers or other infrastructure. It is also beneficial for cloud storage as it helps in keeping the data secure and tamper-proof.
- What should founders keep in mind when building their blockchain business? Especially start-ups and SMBs 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’s 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 think of it as essential and transformative technology, the primary consideration should define your aims for blockchain implementation. When researching a cloud provider for your blockchain business, consider CPU considerations, uptime considerations, scalability considerations, and ease of use considerations.
While blockchain aids in providing more transparency by creating a decentralized and distributed trust model, it is important to assess the ROI that will come from its implementation.
- How to overcome the challenges of required technology stack and cloud infrastructure need?
Companies planning to move their workloads to the cloud must use digital principles and capabilities to not only 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 duration 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 need to work together to achieve the desired results, both on the front end and back end of the application. While the stack can vary from business to business, organizations should start with server and cloud computing services, operating systems, programming languages, database management systems, and performance monitoring services.
- How to leverage the right tech-skills in blockchain?
Blockchain developers have many roles and responsibilities. They may be responsible for the blockchain network, the applications running on that network, or a combination of both. They can also participate in designing blockchain networks and applications, analyzing existing systems, and evaluating new technologies. But the critical skills required are:
- The person should have an excellent understanding of blockchain technology
- They should have a solid understanding of cryptography and security principles
- They must have an experience with distributed systems and peer-to-peer networking
- They must have knowledge of smart contracts
- There should be familiarity with algorithms and data structures
- As chains grow in blockchain and scaling is always 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 complete chain growth would be significantly disruptive. Therefore, one should consider choosing a cloud provider that enables them to resize servers. Since blockchain services often need to expand 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 computing solutions that can scale quickly as and when needed. Therefore, we provide all the infrastructure solutions needed for blockchain builders, from compute to managed Kubernetes. Our Droplets are the perfect solution for blockchains businesses wanting to get started quickly on a flexible cloud hosting solution. We have a simple and easy-to-use API and CLI, making it easy to scale automatically as the blockchain grows.
We also provide a vast library of in-depth documentation and tutorials to ensure that people 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 some use cases or examples of how blockchain businesses are building on DigitalOcean?
DigitalOcean’s simple, low-cost Droplet virtual machines have proven to be an excellent match for the needs of blockchain businesses. We have companies in various industries leveraging DigitalOcean’s cloud services to run their blockchain networks and serve thousands of users around the globe.