2022/01/31

Blockchain and the cloud: is it possible to bet on both?...

Blockchain is the fashionable technology and the one that is causing the biggest stir today. The same thing happened a few years ago with the cloud and a large part of the companies bet on it. However, to what extent are both technologies compatible?

While in Cloud systems the services we use are hosted on third-party infrastructures, that is, we trust an external entity, the idea of blockchain technology is to create a decentralized database in which there is no trusted authority. So how do this new technology and the cloud get married?

Is it necessary to choose between the two or is it possible to integrate them?

Cloud systems have seen tremendous growth in the last decade. Beyond serving as an infrastructure to store data, it also provides applications to work on. Today, there are even services offered in this mode, such as "IBM Blockchain Cloud Services" or "Ethereum Blockchain as a Service" from Microsoft Azure.

However, isn't it a contradiction to offer blockchain services under this modality? Cloud services depend on the entity that hosts them, so when we use them, we are relying on that entity. Each of the nodes of our network depends on the entity that offers this service, that is, the system on which we are acting does not belong to us.

However, it should be noted that once the network is deployed, control over it passes into our hands. In addition, the architecture on which these networks are implemented follows the architecture of a distributed system, deploying each of the nodes of the network on different servers. On the other hand, the development and deployment of Smart Contracts is in our hands, so it is we who decide the logic that will be executed in our blockchain.

The integration of these technologies can also be approached from another perspective: cooperation. The biggest problem facing the Cloud mode is the reluctance on the part of users. In the case of blockchain, scalability is one of its main challenges. Although it is unthinkable to propose that each participant in the chain store all the information, it is true that it will require storing large volumes of data.

That is why both technologies could be integrated, enhancing the opportunities offered by each. Blockchain could serve as a guide to cloud content. Thanks to this, you would get a blockchain with relatively small data pointing to other records in the system, in this case the cloud.

Another solution would be to share the free storage space of each user, through such technology. That is, to create a system in which users ' computers replaced the cloud, using fashionable technology. Such solutions, like those mentioned above, will be addressed in subsequent articles.

Alejandro O. Asharabed Trucido

+54911 5665 60608
Buenos Aires, February 01, 2022

Blockchain y la nube: ¿es posible apostar por ambas?...

Blockchain es la tecnología de moda y la que mayor revuelo está causando a día de hoy. Lo mismo ocurrió hace unos años con la nube y gran parte de las compañías apostaron por ella. Ahora bien, ¿hasta qué punto son compatibles ambas tecnologías?

Mientras que en los sistemas Cloud los servicios que utilizamos se albergan en infraestructuras de terceros, es decir, confiamos en una entidad externa, la idea de la tecnología por cadena de bloques consiste en crear una base de datos descentralizada en la que no exista ninguna autoridad de confianza. Por tanto, ¿cómo se casan esta nueva tecnología y la nube?

¿Es necesario elegir entre una de las dos o es posible integrarlas?

Los sistemas Cloud han sufrido un gran crecimiento en la última década. Más allá de servir como infraestructura para almacenar datos, también proporciona aplicaciones sobre las que trabajar. A día de hoy, incluso existen servicios que se ofrecen en esta modalidad, tales como "IBM Blockchain Cloud Services" o "Ethereum Blockchain as a Service" de Microsoft Azure.

Sin embargo, ¿no es una contradicción ofrecer servicios por cadena de bloques bajo esta modalidad? Los servicios Cloud dependen de la entidad que los alberga, por lo que, cuando los utilizamos, estamos confiando en dicha entidad. Cada uno de los nodos de nuestra red, depende de la entidad que ofrece este servicio, es decir, el sistema sobre el que estamos actuando no nos pertenece.

No obstante, cabe destacar que una vez desplegada la red, el control sobre la misma pasa a nuestras manos. Además, la arquitectura sobre la que se implantan estas redes sigue la arquitectura de un sistema distribuido, desplegando cada uno de los nodos de la red sobre distintos servidores. Por otra parte, el desarrollo y despliegue de los Smart Contracts queda en nuestras manos, por lo que, somos nosotros quienes decidimos la lógica que se ejecutará en nuestra cadena de bloques.

La integración de estas tecnologías, también se puede abordar desde otra perspectiva: la cooperación. El mayor problema al que se enfrenta la modalidad Cloud es la reticencia por parte de los usuarios. En el caso de cadena de bloques, la escalabilidad es uno de sus principales retos. A pesar de que es impensable plantear que cada participante de la cadena almacene toda la información, sí que es cierto que se requerirá almacenar grandes volúmenes de datos.

Es por ello que ambas tecnologías se podrían integrar, potenciando las oportunidades que ofrece cada una. Blockchain podría servir como guía del contenido de la nube. Gracias a ello, se conseguiría tener una cadena de bloques con datos relativamente pequeños que apuntan a otros registros en el sistema, en este caso la nube.

Otra solución sería compartir el espacio de almacenamiento libre de cada usuario, a través de dicha tecnología. Es decir, crear un sistema en el que los equipos de los usuarios reemplazasen a la nube, utilizando para ello la tecnología de moda. Este tipo de soluciones, al igual que las mencionadas anteriormente, se abordarán en artículos posteriores.

Alejandro O. Asharabed Trucido

+54911 5665 60608
Buenos Aires, February 01, 2022

Blockchain: A disruptive technology with the power to revolutionize financial services...

Blockchain is a technology you should know.

Due to its immense potential, more than 70 of the world's largest financial institutions (including Barclays, JP Morgan, Royal Bank of Scotland, State Street and UBS, to name a few) are part of a consortium that researches and develops blockchain technology.

In addition, PwC's Global Blockchain team has identified more than 700 startups in the space and blockchain technology is seen by some as the fifth computing paradigm, after the mainframe, personal computer, Internet and finally the mobile and social media revolution.

Not familiar with blockchain yet?.

You're not alone, in fact, according to a 2016 survey of top executives from some of the world's leading financial institutions, less than 20% of respondents described themselves as "very familiar" or "extremely familiar" with technology. That said, 56% of respondents recognize its importance.

Why this ignorance of a technology that has the potential to revolutionize trade as we know it?.

We believe this is due, in part, to the fact that many industries are still focusing their efforts on leveraging the Internet and mobile technology to improve customer experiences.

The financial services and insurance industries, in particular, are catching up in this area. With so much attention focused on front office platforms, little attention has been paid to archaic back-office and mid-office systems, where blockchain technology is most applicable.

Another factor contributing to the lack of knowledge in this space, we assume, may be those people who still have difficulty understanding what amounts to a paradigm shift, in the way humans have always done business.

We believe that blockchain technology and its possible implications for the financial services and insurance sectors deserve special attention. As such, we have formed an internal blockchain working group to better understand the technology and how our customers can leverage it.

The first initiative of the group was the development of the basic introduction to the topic. We are confident that our overview will provide you with some clarity and elements to think about regarding this potentially revolutionary technology.

Alejandro O. Asharabed Trucido

+54911 5665 60608
Buenos Aires, February 01, 2022