Blockchain and Cloud Computing: The Perfect Match for Securing Data and Transactions

6 min readFeb 16, 2023

With its numerous advantages, cloud computing has taken the software business by storm. Companies use cloud computing worldwide for data storage and backup, software development and testing, disaster recovery, and other purposes. The cloud is not only used in the IT/software business; many different industries, including healthcare, automotive, and retail, are leveraging cloud computing to develop novel solutions. However, cloud computing has its own set of constraints. At this stage, Blockchain, another disruptive technology, enters the picture.

Because of its transparency, security, and decentralized nature, blockchain technology is used by millions of organizations for a variety of industrial applications. However, combining Blockchain and the cloud can further transform sectors.


Blockchain is only a digital ledger that keeps track of all transactions. This ledger is dispersed over numerous computer systems and can only be modified by a majority vote, making it highly resistant to tampering.

Blockchain technology has the potential to improve cloud computing security and privacy significantly. Blockchain is highly safe since it allows the transparent recording of all transactions on millions of computers worldwide.

This feature could result in fewer data breaches and better cloud-based backup solutions for organizations and people. Some cloud computing applications, such as cloud-based cryptocurrency wallets and cloud services, use blockchain technology to decentralize cloud computing networks.

Cloud Computing in Brief

Cloud storage in cloud computing refers to data storage on remote servers rather than locally on your hard disc. Cloud services are also made available via internet-based platforms such as software as a service (SaaS), which allow clients such as corporations, schools, and governments to store information in the cloud and access them from any device with an internet connection.

Consider the following scenario: you wish to store the data of thousands of people. You want to save specific data depending on your company’s field. Businesses might wish to maintain a customer’s purchase history; healthcare providers might want to keep the patient’s past conditions, and so on.

This amount of data would necessitate dedicating an entire room to hosting servers and storing data. This technique would be costly, inefficient, and would have additional drawbacks. Additional electricity costs and more critical security requirements will significantly strain your budget.

Cloud computing eliminates the impracticality of your company’s servers by using a remote solution. It is less expensive and allows consumers to access data on a global scale.

While cloud computing has numerous advantages, such as enhanced data accessibility, it is also a target for hackers. Vulnerabilities arise when cloud data is kept on remote servers which users cannot access.

Cloud Computing and Blockchain Tech

Blockchain applications in cloud computing are linked to the Cloud of Things (CoT), a hybrid of cloud computing, and the IoT (Internet of Things). Before we get into blockchain cloud computing and blockchain-based cloud, let’s discuss the Cloud of Things.

Cloud of Things provides a robust and adaptable cloud computing environment for more efficient management of IoT services. This means that CoT improves an IoT system’s performance.

The Internet of Things is a network of networked items such as sensors, home appliances, cars, etc. An IoT system’s devices can connect and exchange data over the internet without human involvement.

Many industries employ IoT systems to gather data from their surroundings, store it and analyze it to obtain necessary information for appropriate action. However, because IoT devices have limited storage space, they use the cloud to store vast amounts of sensor data, which constitutes CoT. Several cloud services are accessible, including public, private, and hybrid clouds.

The Importance of Blockchain Cloud

There are some hazards and restrictions to cloud computing and CoT infrastructure that Blockchain can assist in alleviating. These dangers and constraints include:

  • Users have limited control over their data, procedures, and code after they transfer it to the cloud servers.
  • Users need to gain more knowledge of the fundamental working processes of cloud computing, and they must rely on cloud providers for data processing, which might raise security and privacy problems.
  • CoT incorporates centralized communication methods, which makes scaling service operations and expanding IoT networks to a bigger deployment challenging. Due to high data flows, centralized network architecture increases communication latency and power consumption for IoT devices.

How Does the Blockchain Cloud Work?

We can use Blockchain for secure network management in blockchain-based cloud computing and host the blockchain network as Blockchain-as-a-Service (BaaS) in a cloud environment.

BaaS enables IoT applications by providing blockchain-enabled services such as smart contract services, user transaction verification, and cloud blockchain storage.

Blockchain vs. Cloud Computing

Although cloud computing and Blockchain have many similarities, there is a noteworthy difference between the two. Regarding Blockchain vs. cloud computing, the two technologies differ in several ways.

Traditional cloud computing employs centralized architecture, but blockchain cloud computing relies entirely on decentralization. Another distinction between cloud computing and Blockchain is that cloud services allow you to store data via the internet readily. However, Blockchain employs many types of encryption and saves data in specialized databases. When cloud providers include blockchain technology in their tech stack, you get Blockchain’s security paired with the cloud’s convenience.

Another significant distinction between the cloud and Blockchain, or blockchain and cloud storage, is that Blockchain provides significantly more security than the cloud. The data in the standard cloud is editable, but you cannot update information or data with blockchain-based cloud storage. Finally, whereas cloud computing is more vulnerable to hackers and data breaches, Blockchain eliminates data manipulation.

Blockchain IaaS is a cloud computing service model in which a third-party provider delivers resources such as storage, virtual private servers, and networking via the internet.

Users are responsible for their data when using IaaS, which implies that if any data is lost, they must retrieve it themselves. The users also must install and maintain operating systems and apps. Cloud infrastructure services are another name for IaaS services.

Blockchain IaaS is a cloud computing service model similar to IaaS but with extra security and decentralization. A cloud computing service might exploit the idle capacity of CPUs and GPUs in a decentralized network to give more computing resources to consumers on a per-user basis using an IaaS blockchain cloud service.


There are numerous advantages to combining blockchain technology and cloud computing, including the following:

  • Enhanced cloud backup solutions
  • New potential for cloud services
  • Improved security

Security enhancement is one of the most significant advantages of Blockchain in cloud computing. The chances of data breaches or cyber threats are less because all transactions are recorded transparently in a distributed ledger. This feature makes cloud storage more secure than ever before and can assist organizations in protecting their critical data.

Improved cloud backup solutions are another advantage of Blockchain in cloud computing. Blockchain significantly improves cloud backup capabilities by prohibiting illegal access to user data without jeopardizing its integrity by leveraging advanced encryption technologies such as zero-knowledge proofs.

Finally, Blockchain has the potential to create new opportunities for cloud services. Blockchain has the potential to support a wide range of cloud-based applications, including cloud storage, cloud computing, cloud-based cryptocurrencies, and much more, by decentralizing cloud networks and enabling better data sharing.

Blockchain Applications in Cloud Computing

This new technology has numerous applications. In this section, we will look at some of the finest blockchain use cases in cloud computing:


International cash transmission is still time-consuming due to security and transparency concerns. The adoption of Blockchain technology in conjunction with Cloud Computing can alleviate these constraints because it is more transparent, safe, and faster than traditional methods of cross-border fund transfers.


Large healthcare providers save much information about their patients, test results, and payment methods. This data is mainly stored on centralized systems, which are vulnerable to hacking and pilferage. Doctors, hospitals, and other healthcare organizations may rely on Blockchain because it delivers a high level of data protection.

Home Automation

Cloud computing based on Blockchain is perfect for home automation, including the Internet of Things (IoT). A fire sensor, for example, is linked to the internet and sends notifications to the house’s residents after detecting fire via temperature and smoke sensors. All IoT device data is kept on Blockchain-based Cloud servers.

Supply Chain Administration

Supply chain management generates a large amount of data and necessitates using a reliable platform to streamline manufacturing and logistics. Companies can use Blockchain technology to implement a decentralized supply chain management architecture. This step can improve data security, more efficient tracking, and speedier decision-making.

Property Management

Real estate transactions still need to be covered by excessive paperwork, intermediaries, corruption, and fraudulent activity. All of these difficulties can be addressed by blockchain-based cloud computing. Technology can enforce due diligence, and intermediaries and paperwork can be eliminated. Smart Contracts are Blockchain-based technologies that can facilitate real estate transactions.

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