Cloud Storage on Blockchain

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13 Jan 2024

We will explore the integration of blockchain technology with Cloud Storage, and also discuss blockchain-based projects and initiatives by major technology companies in this field.

What are the benefits of integrating Cloud Storage technology with blockchain?
Let's discuss these benefits under different headings:

Data Security and Integrity

Through blockchain, users can encrypt their data using cryptographic algorithms. This involves encrypting data using private keys, allowing only authorized individuals to access and decrypt the encrypted data.
This enhances data security while minimizing the risk of unauthorized access. The combination of blockchain structure and cryptographic algorithms offers a more secure method of communication and data storage, thereby enhancing data privacy.

Data Privacy

Distributed Storage and Computing

Blockchain-based cloud storage enables data to be stored in distributed nodes. This approach minimizes data loss and makes backup processes more effective.

As data is stored in decentralized nodes, a failure or error in one node does not lead to data loss. Moreover, backups stored in multiple nodes ensure continuous access to data, increasing reliability. This way, blockchain-based cloud storage enhances both data security and effective business continuity.

Automation with Smart Contracts

Blockchain allows data sharing and transaction execution to be automated through smart contracts. Smart contracts are programmable code sequences that automatically execute when specific conditions are met. This enables transactions to occur without manual intervention.

Automation speeds up business processes. Smart contracts can execute transactions instantly based on predefined conditions, leading to faster results compared to traditional methods. Smart contracts work as programmed, eliminating human error and increasing reliability.

Eliminating Third-Party Risks

Traditional cloud storage often involves trusting third parties. Data is stored in centralized servers, relying on the security and reliability of these third parties. This can increase the risk of security breaches or data loss.

In contrast, blockchain-based solutions mathematically prove security and verification. Blockchain ensures data security using cryptography and mathematical algorithms. Data is encrypted within distributed nodes, and each transaction undergoes mathematical verification processes. This ability to ensure data security and verify transaction reliability is a key feature of blockchain.

Cost and Efficiency

Decentralized structures can reduce intermediaries and costs present in traditional centralized systems. This means that data is directly shared between parties and transactions occur without the need for a central authority. The absence of intermediaries and unnecessary processes enables faster and more effective execution of processes.

This situation presents an opportunity to create a more cost-effective and efficient cloud storage service. Decentralized structures offer a more economical solution by eliminating unnecessary intermediary costs. Additionally, direct data sharing and swift transaction execution enable the provision of a more efficient service.

Now, let's take a look at the work of technology leaders in the Cloud Storage field:

Amazon Web Services (AWS)

Amazon Managed Blockchain (AMB) is a product launched by AWS, enabling easier participation or creation of public or private networks on multiple AWS accounts using open-source frameworks like Hyperledger Fabric and Ethereum.

These blockchain frameworks allow network members to securely transact and share data on a distributed and immutable ledger. Amazon Managed Blockchain offers the ability to democratically manage your network and enhance data sharing security. Access to Amazon Managed Blockchain can be obtained via AWS Management Console, AWS Command Line Interface (CLI), or AWS SDK.

The difference between Amazon Quantum Ledger Database (QLDB) and AMB is that QLDB is a centralized ledger database and not blockchain-based. AMB Access provides access for different blockchains and allows the creation of private networks. Pricing for AMB is based on resource usage. AWS collaborates with various blockchain partners including Hyperledger Sawtooth, Corda, DAML, Ethereum, Quorum, and more.

Microsoft Azure

Microsoft supports Web3 applications with a principled and neutral approach, offering various tools and technologies within the Web3 framework. Web3 developer tools, cloud platforms, and products like Microsoft Entra Verified ID, Azure Managed Confidential Consortium Framework, and Azure Confidential Ledger are being developed.

Decentralized identity enables secure and transparent interactions between individuals, organizations, and objects. AMCCF is useful for multi-party applications with a combination of central computation and decentralized trust. Azure Confidential Ledger provides high-security data storage with hardware-backed security.

ConsenSys Quorum Blockchain Service offers a managed blockchain infrastructure for creating distributed blockchain networks using the Quorum protocol. Microsoft Azure collaborates with Ethereum, Hyperledger Fabric, Corda, Stratis, and more.

Google Cloud

Blockchain Node Engine, a Google Cloud product, is an automated node provisioning service. Companies needing private nodes can leverage the reliable, performant, and secure Google Cloud infrastructure for transmitting transactions, distributing smart contracts, and reading/writing blockchain data.

Blockchain Node Engine eliminates the operational complexity of managed nodes, offering configurability. This service aims to provide technology and tools required for Web3 developers to build new products. Blockchains store transaction data like decentralized databases and anonymize data, ensuring secure processing. Blockchain Node Engine assists users in securely processing this data.

Ethereum is the first blockchain supported by the Blockchain Node Engine. With this service, organizations can provision nodes more quickly and achieve seamless operational experiences with automated operations. Google Cloud collaborates with Ethereum, Alchemy, Nansen, Solana, Tezos, Polygon Labs, Aptos, Celo, Flow, HBAR Foundation, Near etc.

IBM Cloud

IBM-Supported Hyperledger Fabric Blockchain Platform includes certified Hyperledger Fabric images and certified Kubernetes Operator images with Fabric Operations Console. This service offers the possibility for customers to deploy blockchain components on their infrastructure or in public and private clouds for security reasons.

With Hyperledger Fabric Operator and Fabric Operations Console, users can create consortia on the same network, bringing together components from different clusters to create a distributed blockchain network. IBM-Supported Hyperledger Fabric can be purchased as a separate service, and with this service, you need to purchase and create your own Kubernetes cluster.

Kubernetes is an open-source container orchestration platform that automates many manual tasks involved in deploying, managing, and scaling packaged applications. IBM Cloud collaborates with Ethereum, Hyperledger Fabric, Hex Trust, Protego Trust, Propine, Unbound, Onchain Custodian.

Oracle Cloud

Oracle Blockchain Platform is a cloud platform used to create authorized blockchain networks.
Based on Hyperledger Fabric, this platform offers the technology and capabilities needed to create business applications and networks. It includes features like VMs, REST proxy, transaction console, and custom configurations. The platform allows customers to leverage distributed ledger technology without the use of any tokens or cryptocurrencies.

Provided by Oracle, this service is available in different regions and is aimed at customers who want to create business networks. Oracle Cloud collaborates with Hyperledger Fabric, Ethereum, Chainlink, ConsenSys, Oasis Labs, Corda, VectorSpace AI.

SAP Cloud

SAP Blockchain Service (SAP Blockchain-as-a-Service) utilizes blockchain services provided by companies like Hyperledger Fabric, MultiChain, and Quorum. Through SAP blockchain components: SAP Cloud Blockchain Platform and SAP HANA Blockchain Service, it provides the ability to connect enterprise blockchain platforms to SAP HANA.

To simplify integration, SAP created the Business Blockchain Bridge (B3). This connects a business application to a blockchain network through APIs, enabling transactions, messages, and virtual assets to take place. The GreenToken developed by SAP ensures transparency in raw material usage before certain products enter a supply chain. This blockchain technology-enabled system ensures transparency in the use of sustainable sources for materials.

Companies are now subject to Environmental, Social, and Governance laws and are required to ensure that some materials come from sustainable sources. GreenToken uses digital twin tokens on the blockchain to provide a transparent supply chain up to the point of raw material extraction. This extends the transparent supply chain to the point of raw material extraction, such as minerals or metals.

SAP Cloud collaborates with Hyperledger, Ethereum, MultiChain, Quorum, Ripple
Lastly, let's examine blockchain applications in the Cloud Storage Services sector.

IPFS

IPFS can be defined as a protocol designed to store all types of content, including data, websites, files, and applications, in a decentralized manner, providing decentralized access to this content. IPFS was designed as a peer-to-peer (P2P) based decentralized alternative for storing files and accessing files. In fact, this design is similar to how torrents work, where data is pulled in blocks from peers on the network.

The company aims to use open-source IPFS to solve problems like censorship and vulnerability in today's internet, contributing to creating the internet of the future.

Here is the blockchain projects:

Filecoin

Filecoin is a peer-to-peer protocol that provides economic incentives and encryption to enable reliable and decentralized storage of data.

Users pay storage providers to store their files, and these providers are responsible for storing the files accurately and completely. Anyone can join Filecoin, and storage prices are determined by the free market.

Filecoin is built on top of the IPFS protocol and provides content addressing and permanent references to data. This encourages secure storage of content and access to content.
It has various use cases, from Web3 NFT files to Web2 datasets. Platforms like Shoah Foundation, Internet Archive, and Audius use Filecoin as a decentralized storage solution.

BitTorrent

BitTorrent File System (BTFS) is a next-generation file-sharing platform within the BitTorrent ecosystem. BTFS enhances DApp developers' ability to provide more efficient services in a broader market by integrating BitTorrent and BTTC networks.

The BTFS network primarily consists of BTFS nodes composed of renters and hosts. Renters pay WBTT to upload files, while hosts provide storage services on the network and receive BTT rewards in return.

Arweave

Arweave is a blockchain platform that enables permanent and decentralized storage of data.
Arweave is built on a structure that can store data permanently and provide open access to that data. Unlike traditional centralized storage systems, it offers a solution for permanent data storage by making it difficult to delete or alter data.

The Arweave network uses a "Proof of Access" algorithm, which is similar to Bitcoin's Proof of Work algorithm. This algorithm rewards those who store data based on their ability to provide access to that data, ensuring long-term and secure data storage.

The goal of the Arweave network is to ensure future access to data and provide a data storage solution resistant to central authorities or censorship.

Ocean Protocol

Ocean Protocol is a blockchain platform that defines data assets with unique tokens on the blockchain. These tokens provide a unique identifier for each data asset, enabling tracking, ownership verification, and access control.

Ocean Protocol automates data exchange conditions using smart contracts, implementing and enabling secure and automatic data swaps. This eliminates the need for intermediaries while making data transfers secure.

Every data transaction is recorded on the blockchain, creating an immutable audit trail. This ensures transparency and traceability in data usage.

Siacoin

Sia is a decentralized cloud storage platform that uses blockchain technology. The Sia storage network uses unused storage capacity from around the world to create a more reliable and cost-effective data storage market compared to traditional cloud storage providers.

The Sia network encrypts users' data and provides decentralized access to it. Files are divided into multiple pieces and stored on different nodes, minimizing the risk of a single point of failure. Users pay storage hosts, who are responsible for securely storing and providing access to files.

Flux

The Flux Ecosystem is a platform that provides infrastructure services for decentralized services. It offers a development environment similar to AWS, enabling interaction with blockchain transactions and creating a compatible system.

Supported by a local Proof of Work (PoW) cryptocurrency, Flux incentivizes hardware hosts, manages on the blockchain, and includes staking conditions to prevent malicious actors.
The Flux operating system runs on Linux to provide verified and scalable computational power with high availability. It ensures transparency in management operations using the blockchain.
Anyone who wants to be rewarded for supplying hardware from anywhere in the world can participate by temporarily locking the required Flux capital in their wallets.

Storj

Storj is a decentralized cloud storage network. This platform allows users to store their data in a distributed network around the world in an encrypted manner. Storj offers a decentralized network service that protects users' data with high-level encryption technology. As a result, unauthorized users cannot access encrypted data, eliminating the risk of data breaches and interruptions with Storj.

Each file is encrypted using the AES-256-GCM symmetric encryption method. This process is standard and applied before uploading the file to the network, preventing unauthorized access to the data. Storj aims to provide a more secure, scalable, and uninterrupted data storage service as an alternative to traditional cloud storage services.

Stratos

Stratos is a blockchain platform that provides infrastructure services for decentralized services. It is a layer surrounding the blockchain environment by offering decentralized storage, databases, and computing services. Stratos uses the Traffic Proof (PoT) incentive model, allowing traffic volume to serve as a value resource rather than storage capacity.

Stratos Data Network includes decentralized storage, database, and computing capabilities. It offers quick storage and querying of structured or unstructured data types. Stratos Data Network optimizes data querying and media playback experiences using customized processing methods based on the data type.

Crust Network

Crust provides a decentralized storage network service for the Web3 ecosystem. It supports various storage layer protocols like IPFS and provides storage interfaces to the application layer.

Its technical infrastructure is capable of supporting a decentralized computing layer. Aimed at ensuring data privacy and ownership, it seeks to create a decentralized cloud ecosystem.

Crust Network's use cases include:

Serverless DApp/website hosting
Public off-chain data storage
Accelerated content distribution
Secure cloud storage

Crust Network operates over three layers:

MPoW (Meaningful Proof of Work) - A storage proof layer requiring low trust/zero trust to verify and prove storage work by miners.
GPoS (Guaranteed Proof of Stake) - A PoS derivative consensus layer that requires receiving a staking quota by providing storage proofs.
DSM (Decentralized Storage Market) - Allows users to place storage orders on the chain to store and distribute their data on the Crust Network.