Cloud Computing is wrong. Can Blockchain Help Fix That? – IBM (NYSE:IBM), Amazon.com (NASDAQ:AMZN)

Cloud computing is the backbone of the modern world. Almost every interaction a user has with their smartphone is sent through the vast and ubiquitous cloud. Calculations and communications that are critical to businesses, small and large, all depend on the cloud to function.

By 2027, cloud computing is expected to peak 1.2 trillion dollars in global revenue for companies that Amazon.com, Inc. AMZN, Microsoft Corporation MSFTand International Business Machines Corp IBM. The cloud is big business, but the model is flawed.

Status Quo

As it stands, the infrastructure that powers the cloud is highly concentrated in the hands of a few companies – and with it control. Amazon alone monitors about a third of all traffic in the cloud.

These companies use a “hyperscale” model, building massive server farms that span football pitches. Today, over 700 has been built. Their data centers are often considered an environmental nightmare since they use enormous amounts of energy. A recent one MIT study estimated their consumption to be on par with entire countries such as Poland or Sweden.

And beyond the environmental costs, their relative concentration and centralization make the entire cloud vulnerable to power outages. If just one server farm goes down, whether due to random chance or malicious actors, large parts of the cloud are at risk.

Is there an alternative?

Cudo Ventures bets that the blockchain can provide a solution. The company says it is a pioneer in the space, and champions the technology as a vehicle for a decentralized cloud.

At its core, blockchain allows peer-to-peer transactions that are secure and trustless – no centralized authority is needed to monitor the network or approve individual transactions. While many projects like Bitcoin (BTC) uses this technology to facilitate the transfer and storage of wealth, Cudo is leveraging the same technology in an attempt to disrupt the cloud. They’re taking the centralized “hyperscale” model and turning it on its head, building a distributed network the company calls Cudo Compute.

It is important to note that distributed computing in general is not new. In fact, it has been around for years. SETI@home, for example, harnesses the collective power of a large network of home computers run by individual volunteers. The monumental challenge of analyzing incredible amounts of signal data is distributed to a global network, each person only tasked with performing calculations a simple PC can handle. The model is the embodiment of the saying “many hands make light work”.

But SETI@home relies on the goodwill of volunteers, and it doesn’t have the security concerns found in the modern cloud. Sensitive data is routinely trafficked on Amazon and Microsoft servers. Any replacement to the current status quo must be equally secure.

Enter BlockChain

This is where the power of blockchain shines. Individuals and small-scale data centers are encouraged to donate their spare computing power and are then connected to those in need of resources. The process will eventually be handled automatically through the network, secured and validated on the blockchain. When Cudo Compute converges with Cudos blockchain, it may be able to solve problems fundamental to the modern cloud.

Even now, Cudo Compute, eliminates the need for hyperscaling data centers and makes use of computing power that would otherwise be wasted. The network is more robust and secure because it has no single points of failure.

To learn more about the transformative power of a distributed cloud and the blockchain, check out visit and https://www.cudos.org/.

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Selected image of Alexandre Debiève on Unsplash