Blockchain in the Cloud – A Greener Future for Blockchain Developers (Part 1)
Disclaimer: The text below is a press release that is not part of Cryptotelegraph.com editorial content.The blockchain has the capability to change the future of the entire internet. A financial system is just the first stage of the revolution, but the potential of the technology travels much further beyond financial transfer. This is the first in a three-part series highlighting the future capabilities of blockchain technology.A greener future for blockchain developers“It’s an alarming thought, but in some cases, blockchain mining operations use enough energy to power entire cities.” – Omar Abi IssaAs the industry evolves, blockchain providers are obliged to build solutions with massively reduced carbon footprints. This shift may help providers achieve sustainability goals and meet more stringent regulations that are likely to be introduced. By utilizing emerging mechanisms for verifying blockchain transactions – such as Proof of Stake (PoS) validation protocols – businesses can greatly reduce their CPU/GPU usage and energy consumption.How a transaction is verified in the blockchainOne of the most popular use cases for blockchain technologies is decentralized applications (Dapps). The front-end facing applications create a smart contract (transaction), which then must be verified. If the verification process is successful, it gets added to the transaction block. A transaction can only be added to the chain when a set of criteria is met. The verification process depends on the protocol sourcing the network.Proof of Work (PoW) protocolIn a network operating PoW protocol, the transactions are validated by a mining node. The verifying nodes that operate in a PoW-based network are solving a mathematical problem. They mostly use the computing power of a GPU or CPU to solve these problems. Very often, mining nodes use 100% of the available computing power. This method requires servers to be equipped with very powerful GPUs, which need to run continually.Proof of Stake (PoS) protocolAdopting Proof of Stake (PoS) blockchain validation protocol is accelerating across the industry. When a blockchain operates a PoS consensus mechanism, the transaction verification process is managed by a network of validators who run infrastructure equipped with the operational cryptocurrency of the network itself. They are driven by a common interest in maintaining network security and transparency. These “validators” operate a pool of staking nodes, which delegate a portion of their coin assets, ensuring the legitimacy of the transaction.Crucially, the PoS nodes are not necessarily using the full compute resource capacity, making it a much more sustainable blockchain ecosystem. As a result, many commentators anticipate an easing of the restrictions put in place by cloud service providers.The IT industry is experiencing a strong trend toward redundancy, security, transparency, and safety. If not already, blockchain-based technologies are going to be part of a fourth industrial revolution. The secure, decentralized databases that blockchain technologies offer draws criticism on sustainability grounds. This is because some types of blockchain databases utilize a large amount of computing power to verify the data in that they are running a PoW consensus mechanism. In response to these concerns, many blockchain providers are now adjusting their data verification protocols to PoS to reduce energy consumption and meet green targets.Explore the next blockchain article in the mini-seriesBuilding a sustainable blockchain database is one thing, but building one that is efficient, cost-effective, and compliant is another. This requires careful planning and an understanding of how underlying infrastructure impacts the success of your blockchain company. Read the next article in this mini-series: ‘Building Successful Blockchain Infrastructures,’ to explore how your infrastructure decisions can determine future success.To learn more about Blockchain in the Cloud, speak to industry expert Omar Abi Issa:Email: [email protected]LinkedIn: https://www.linkedin.com/in/omarabiissa/To read the next piece in the mini-series, please follow this link: Blockchain in the cloud – Building successful blockchain infrastructures (Part 2)
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