As with any trend, blockchain technology has its fair share of pros and cons, especially in the context of the data center. However, blockchain’s increasing influence can provide organizations with a competitive advantage when they apply it appropriately.
Today, blockchain technology is one of the biggest trends in the industry. According to an online survey of more than 600 business decision makers commissioned by Casper Labs and conducted by Zogby Analytics, 86% of respondents said they would be more interested in deploying blockchain if there was a hybrid option for their organizations to store data. migrate securely between private and public environments. The most cited use cases for blockchain by those surveyed are security and the management of copy protection and databases.
Recent blockchain technology
Blockchain is a highly secure and immutable record keeping technology. Bad actors cannot break into the system or falsify the data stored on it. This distributed ledger technology records transactions and related data in multiple locations at the same time, preventing a single point of failure and validating every piece of information it stores.
Compared to traditional databases that store data in rows, columns, tables and files, a blockchain is decentralized and managed by computers in a peer-to-peer network. It stores data in blockchain blocks; during a transaction, each block of data is sent to each computer node in the network, where it is authorized and then securely attached to the blockchain. Once added, a block cannot be changed.
The validation process ensures that the data is unique and legitimate with timestamps to prove it. Should someone attempt to exchange a block, copy it, or change its state, the network of computers that make up the blockchain is immediately alerted and no one can add new blocks to the chain until the problem is addressed.
Security is easily blockchain’s biggest advantage, followed by resilience. Each block is continuously reconciled by a network of computers. If one node fails, it cannot bring down the entire system because all the other nodes have a copy of the ledger.
Blockchain’s unique properties can increase trust, security, transparency and bring other benefits to businesses.
There are several types of blockchains and a variety of uses across industries. The financial industry is currently leading blockchain adoption due to the way the technology simplifies and closes the transaction process.
There are four main types of blockchain. They differ in how open or closed they are, which affects their speed, privacy and security.
How blockchain is transforming data center architecture
In terms of data center architecture, blockchain takes a different approach to data storage.
Blockchain uses decentralization to manage and store data. The blockchain network can consist of dozens, hundreds or thousands of computers distributed in different locations around the world. For a blockchain breach to succeed, hackers would need to take down multiple computers in the network – and even then, blockchain data storage is encrypted, reducing the security risk.
These advantages compete directly with traditional data center storage. Data centers house massive amounts of data in a single location. This centralization puts them at risk of natural disasters and outages in the local area. To add redundancy and prevent data loss, organizations can copy data and store it in other locations. However, this process can be time-consuming and expensive, and it creates a surplus of information that also needs protection.
The rise of blockchain also requires more reliable power, high-performance equipment that can quickly process blocks of data, and more intensive cooling to prevent that equipment from overheating during intense calculations.
Blockchain data storage can deliver higher levels of security, reliability, redundancy, resilience and transparency. Its distributed nature allows users to have a higher degree of control over where they store their data, which also affects accessibility and availability.
That said, accessibility and availability can become an opponent of the decentralized approach. To retrieve a block of data, the various nodes on the network must synchronize, validate and pull the block. This can take a significant amount of time depending on the nodes’ locations and loads. Traditional data centers can deliver much faster speeds and higher levels of data availability.
The security of the blockchain, although quite advanced, is not perfect. As more users adopt the technology, bad actors will become better at finding and exploiting holes in blockchains. However, for now, it offers much better data security than internal and cloud storage.
Use these security tips to prevent bad actors from exploiting holes in your blockchain technology.
Finally, cost is a major factor that determines whether organizations may choose to adopt blockchain. Although blockchain is becoming more popular every day, it is still not widely deployed by organizations – at least not at the same level as cloud storage, which is cheap and available in many forms today.
How data centers can stay ahead of the curve
For data center teams looking for a blockchain approach, start by reevaluating the data center infrastructure. Consider how to pivot resources and start implementing and move to a decentralized architecture. Start thinking about how to set up a peer-to-peer network that can handle a blockchain workflow.
The rise of blockchain also requires more reliable power, high-performance equipment that can quickly process blocks of data, and more intensive cooling to prevent that equipment from overheating during intense calculations. The faster users can write and validate blocks, the better. So make sure you consider these requirements and invest accordingly.
The traditional data center architecture must fundamentally transform to meet blockchain’s demand for higher traffic and availability, including having staff on hand with specialized blockchain skills. It offers a large undertaking; but by planning for it now, organizations can keep up with increasing data processing needs and adapt to customer needs as they adopt new business strategies to integrate the blockchain.
Editor’s note: This article was updated in July 2024 to improve the reader experience.
Jacob Roundy is a freelance writer and editor, specializing in a variety of technology topics, including data centers and sustainability.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
Protecting your crypto journey is Emily's mission. Her knowledge of cybersecurity threats and common scams empowers you with safe practices and secure storage solutions.
