Blockchain Technology and its Impact on the Data Center InfrastructureKiran Umrao
Faster response, quick access, and improved security are the needs of the hour when it comes to data centers and their applications. But the centralized data processing structures are growingly becoming hindrances in delivering efficiently to the end users.
The rise of blockchain technology and the decentralized processing structure has not only brought changes in the crypto-currencies and other financial services, but also in other industries like the data center industry. In this blog, I’ll try to explain what the blockchain technology actually is, how it functions, and what its role in the data center industry is.
What is Blockchain and How it Works?
- According to Don & Alex Tapscott, the authors of Blockchain Revolution, “The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
- The blockchain technology is highly advantageous as it eliminates risks like loss of data, data corruption, theft, and reuse of the crypto-currency. This is because the data is stored across the network. And the whole network is responsible for its own creation and maintenance.
- It guarantees the integrity of a transaction between any two parties that are sharing information. You no more need a third party to guarantee or verify the transaction.
- As part of the blockchain structure, each block is connected with the previous block and the blocks grow as and when new information is added to the network.
- Since the structure is distributed, as soon a transaction occurs or any information is changed or added, all the nodes are modified at the same time. Thus, there’s no single point of failure and no malicious entry can occur within this structure.
- Blockchain structures operate with the help of distributed databases and peer-to-peer transmission while maintaining transparency within the nodes of the chain.
What is the Role of Blockchain in Data Center Infrastructure?
- A blockchain based data center management system ensures utmost transparent operations and saves costs as well.
- For a block-chain based data center, the traditional data center architecture needs to be transformed so as to adapt the blockchain technology.
- The evolution of blockchain technology will need data centers with state-of-the-art infrastructure for better cooling, capacity management, asset management, and virtualization.
- Liquid-cooling shall be adopted for blockchain based data center as it is proven to be more efficient and cost-effective. Read more about liquid-cooling in data centers here.
- With the rise in blockchain-based applications, the demand for hardware with higher computing power like graphical processing units (GPUs) is also increasing.
With more blockchain-based applications coming up in the market, the need for the right data center infrastructure is also increasing. The blockchain technology is foretold to have a great impact on the finance, healthcare, government, transportation, medicine, manufacturing, logistics, and other such industries, making it necessary for data center service providers to keep their offerings competitive.
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