Is Blockchain Going To Overtake Cloud Computing?

Picture of Cloud Computing

Not so long ago, cloud computing was the hype in the business and computer industry, with most global businesses making the shift into cloud computing so that they could not only secure their systems but also foster more productivity. However, blockchain and cryptocurrency have since then overtaken the world and are dominating headlines in the business and computing world.

The differences between blockchain and cloud computing

There has been a lot of hype about cryptocurrencies because they provide a better, easier and decentralized alternative compared to fiat currencies. However, the core technology behind cryptocurrencies is the real game changer. Cloud computing focuses on running the operations of a business and its data on a network that consists of remote servers. This way, the business can process, store and manage data.

Blockchain, on the other hand, is a decentralized ledger technology which records transactions or data on a system of computers distributed all over the world.

In the case of cloud computing, data is centralized, meaning it exists in one place, while a blockchain, store information on all the computers connected to the network. It has been argued that blockchain technology might replace cloud computing but that might end up not being the case.

Blockchain drawbacks

Speed of operation is a vital aspect of any modern system and while blockchain offers fast transactions, scalability is a huge issue. For example, Bitcoin averages about 3 transactions per second which is slow compared to Visa which averages around 24,000 transactions per second. During an interview in December 2017, Ethereum co-founder Vitalik Buterin stated that Ethereum might never replace centralized computing due to drawbacks such as scalability.

Vitalik, however, stated that improvements made to the blockchain systems could lead to significant improvements in processing speeds but this might take some time. The same case might apply when corporate systems are run on blockchain technology. For example, if many companies were to adopt blockchain technology, then there might be higher latency, thus running the risk of slowness. However, Blockchain technology is still young and could end up having massive changes and improvements over the next few years.

Cloud computing also has its risks

It is also not all smooth on the side of cloud computing. It might offer faster solutions for now but this technology also faces problems and risks associated with security. This is because cloud technology systems might be exposed to malicious attacks and leaks that might lead to sensitive data being exposed.

While no system is perfect, their drawbacks have encouraged ideas such as the two systems being combined. For example, the incorporation of blockchain technology to improve security in cloud computing. Most companies work towards making sure that there is security, compliance, reliability, and accountability, especially in their mission-critical processes. One of the key features of a decentralized ledger technology is that it has trust built into the system. This means that companies can use the blockchain to automatically achieve those security and accountability factors and other aspects that are part of improving the mission-critical processes.

In short, a blockchain has limitations that make it less attractive as an alternative to cloud computing. However, it still has a lot of advantages which means the two can complement each other to achieve more efficiency.

Dippli is an independent media outlet that covers the current events in the crypto space. Got breaking news or a story to share? Then feel free to contact us at


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