Why Blockchain-Based Cloud Computing Could Be The Future of IoT

The cloud computing market is pegged to balloon to $411 billion by 2020, according to a Gartner Market Report. In particular, Infrastructure-as-a-Service (IaaS) is expected to grow the fastest, expanding 36.6 percent from 2017 to 2020. 

IaaS cloud services are dominated by the likes of Amazon AWS, Microsoft Azure, and Google Cloud for enterprises looking to tap into vast computational resources, data storage, and networking. However, these resources are housed in centrally controlled facilities (i.e., massive server farms) that make them inefficient in furnishing the connectivity and edge computation required for the advent of the Internet-of-Things (IoT). 

“IoT applications require edge computing close to the source, something vastly different from today’s cloud computing paradigm which has a bigger focus on scaling the service or offering consistency,” details DeepCloud AI CEO, Max Rye. 

As a result, high bandwidth-consuming traffic like video streaming has to travel through extensive routing protocols to reach central servers — increasing costs and reducing connectivity performance. Edge devices (e.g., IoT) require computation and detection close to the edge of the network, making centralized cloud infrastructure antithetical to the goals of IoT proliferation. 

Add in the data privacy and security concerns of centralized repositories, and it is clear that distributing the infrastructure holds significant promise. And blockchains are increasingly revealing themselves as the optimal medium to achieve the lofty goals of IoT. 

Decentralization is The Name of the Game

The overarching decision to transition networks to more decentralized frameworks is the prevailing trend among firms pushing the narrative of “decentralized cloud computing.” One of those, DeepCloud AI, views the blend of AI and distributed ledgers (i.e., blockchains) as the natural next step to supplement the growth of the IoT industry. 

“We enable resource providers close to the edge, such as retail shopping malls, to share the excess capacity of their computer resources on the decentralized cloud, close to the city traffic lights, which makes it possible to do these local computations close to the source,” details Rye. 

DeepCloud AI extends this capacity by implementing AI, which is used to efficiently allocate resources where they are needed across the network.

But supporting a new generation of IoT devices with better performance and connectivity doesn’t stop there. The concept of machine-to-machine (M2M) payments is a vital component of standard demands that IoT devices, such as for weather or environment metrics, will face should they become widely adopted in enterprise business models. Fortunately, cryptocurrencies have shed light on the possibilities of micropayments, since they have much lower transaction costs than traditional payment rails.

“We deploy sidechains and a Decentralized Acyclic Graph (DAG) layer on top of our blockchain to provide a mechanism for faster transactions with zero fees,” says Rye.

Cryptocurrencies remove the middleman since they exist on P2P networks, which translates to reduced transaction costs. For DeepChain AI, the native token of their network, DEEP, which recently completed it IEO on BitMax, functions as the medium for IoT devices, applications, and users to make payments over the network. 

The interest from enterprises in the potential of decentralized cloud computing is already manifesting itself too. 

For example, DeepCloud AI has attracted strategic partners like LD Capital, Voyager Innovations, and the National University of Singapore, all of which have taken a keen interest in promoting and researching the practical enterprise use cases of blockchains. 

Speaking on the agreement with the National University of Singapore, DeepCloud AI detailed

“The cooperative agreement between the University’s School of Computing’s Department of Computer Science & DeepCloud AI is multi-faceted, including the exchange of scientific, technical, academic information, and appropriate materials and information of mutual interest for which each Party holds intellectual property rights.” 

As the realized potential of decentralized cloud computing in the materialization of a more advanced IoT-based sharing economy unfolds, look for more partnerships between innovative platforms like DeepCloud AI and academia to continue. 

The future of tech hinges on the remodeling of centralized archetypes that have dominated big tech for the last decade, and with a few bleeding-edge technologies under their belt, decentralized solutions are beginning to make some noise. 

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John Ishola
John Ishola is a content marketer and a full-time freelance writer. A writer by day and a reader by night, He's passionate about the topics of cryptocurrency and blockchain technology. John has written over 500 contents and about 100 e-books on different topics of Cryptocurrency.

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