Cloud Computing Is Flawed. Can The Blockchain Help Fix it? - Amazon.com (NASDAQ:AMZN), IBM (NYSE:IBM)

Cloud computing is the backbone of the modern world. Almost any interaction a user has with their smartphone is funneled through the vast and omnipresent cloud. Computations and communications critical to businesses small and large all rely on the cloud to function.

By 2027, cloud computing is expected to top $1.2 trillion in global revenue for companies like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and International Business Machine Corp (NYSE:IBM). The cloud is big business, however, the model is flawed.

The Status Quo

As it stands, the infrastructure that powers the cloud is highly concentrated in the hands of a few companies – and with it, control. Amazon alone oversees roughly a third of all traffic in the cloud.

These companies use a “hyperscale” model, building massive server farms that span football fields. Today, over 700 have been built. Their data centers are often considered an environmental nightmare since they use enormous amounts of energy. A recent MIT study estimated their consumption to be on par with entire countries like Poland or Sweden.

And beyond the environmental cost, their relative concentration and centralization make the entire cloud susceptible to blackouts. If just one server farm goes down, whether due to random chance or malicious actors, large swaths of the cloud are at risk.

Is There An Alternative?

Cudo Ventures is betting the blockchain can provide a solution. The company says it is a pioneer in the space, championing the technology as a vehicle for a decentralized cloud.

At its core, the blockchain allows for peer-to-peer transactions that are secure and trustless – no centralized authority is required to oversee the network or approve individual transactions. While many projects like Bitcoin (BTC) use this technology to facilitate the transfer and storage of wealth, Cudo is leveraging the same technology in an attempt to disrupt the cloud. They are taking the centralized “hyperscale” model and turning it on its head, building a distributed network the company calls Cudo Compute.

It’s important to note that distributed computing, in general, is not new. In fact, it has been around for years. SETI@home, for instance, harnesses the collective power of a vast network of home computers run by individual volunteers. The monumental challenge of analyzing incredible amounts of signal data is distributed to a global network, each individual only tasked with computations a basic PC can handle. The model is the embodiment of the adage “many hands make light work”.

But SETI@home relies on the goodwill of volunteers, and it does not have the security concerns that exist in the modern cloud. Sensitive data is routinely trafficked on Amazon and Microsoft servers. Any replacement to the current status quo would need to be as secure.

Enter BlockChain

This is where the power of the blockchain shines. Individuals and small-scale data centers are incentivized to provide their spare computing power and then connected with those in need of resources. The process will eventually be handled automatically through the network, secured and validated on the blockchain. Once Cudo Compute converges with the Cudos blockchain, it may be able to solve issues fundamental to the modern cloud.

Even now, Cudo Compute, eliminates the need for hyperscale data centers and makes use of computing power that would otherwise be wasted. The network is more resilient and secure because it does not have single points of failure.

To learn more about the transformative power of a distributed cloud and the blockchain, check visit https://www.cudocompute.com/ and https://www.cudos.org/.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Featured photo by Alexandre Debiève on Unsplash

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