How Blockchain and Edge Computing can work together

Blockchain and edge computing can be a formidable combination in terms of power, scalability and versatility.

Blockchain is sometimes perceived as cryptocurrency in general, but it is much more. Cryptocurrency is the digital money itself where blockchain is the environment where this digital money is exchanged. Blockchain represents a distributed cryptocurrency transaction system that is often referred to as distributed ledger technology.

Edge computing uses distributed cloud computing by using resources at the network edge to gain optimized access to data sources with better, more tightly integrated security.

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In other words, devices placed in close proximity to the other devices or systems with which they will exchange data. This architecture streamlines network efficiency and scalability to improve computing and real-time applications such as machine learning and augmented/virtual reality.

Why combine the blockchain and the edge?

Since both blockchain and edge computing thrive on the concept of distributed networking, the two can be a formidable pair working together. In particular, edge computing often involves powerful graphics processing units that can help speed up the processing of blockchain transactions. IoT devices without sufficient resources for blockchain operations can transfer these requirements to the edge layer, thereby facilitating such operations.

STL Partners provides a handy graphic outlining the current state of blockchain usage both without and with edge computing. The first structure involves more complexity, delays and obstacles, while the second structure is streamlined, fast and efficient.

Edinburgh Napier University researched the topic of blockchain for edge-enabled smart cities. This research sought to analyze “blockchain-based security and privacy in edge-enabled smart city applications to keep cities safer and a better place to live.”

Specific examples of benefits of blockchain and edge computing included:

• Industrial blockchain IoT applications can help energy management in smart cities by using smart contracts – which can allow systems to automate transactions between all kinds of end users – in smart grids via dynamic pricing.
• Mobile number operations via call routing mechanisms can be facilitated to execute secured royalty contract transactions for faster results.
• Blockchain-enabled earlier diabetes detection frameworks can help patients via machine learning algorithms and also secure health information via wearable IoT devices.
• Sign encryption for IoT devices can help reduce communication complexity.
• Blockchain mechanisms can help protect virtual circuit-based drones via a cloud platform.

Top blockchain and edge computing collaboration

Vendors are also getting into the combination of blockchain and edge computing. Edge.network, Hut 8 and Zenlayer, and Solana and Lumen are examples of such providers.

Edge.network

Edge.network uses blockchain in a free environment where participants can contribute computing resources to earn money and allow the company to profit from three unique concepts known as staking, value attribution and network management.

• Staking requires users to stake 5,000 units of their own $EDGE cryptocurrency when offering additional resource capacity to ensure quality connections and reduce the risk of malicious actors.
• Value allocation seeks to reward contributors for the resources they provide based on usage.
• Network governance allows stakeholders to help run networks, come up with ideas, and vote on or veto decisions. It is a way of ensuring that those who contribute to the environment have a say in the operation.

While Edge.network also offers storage, content delivery and DNS solutions, edge compute and edge cache are the two products specifically related to edge computing.

Hut 8 and Zenlayer

Hut 8, a blockchain infrastructure provider, and edge computing solutions provider Zenlayer have partnered to provide blockchain services over edge networks. Web 3.0, currently a conceptual work in progress, is intended to be a key ingredient in this mix.

Web 3.0 will rely on decentralized architecture and distributed computing concepts to increase the speed of data flow critical for data-intensive applications, as well as to make it more intelligent with better traffic shaping.

Decentralization is a key component of edge and distributed computing is an important element of blockchain, which is why Web 3.0 is a perfect fit for both. Web 3.0 is intended to give end users complete ownership of their data for a more personalized, secure and enhanced experience.

Solana and Lumen

A nonprofit blockchain called the Solana Foundation recently worked with Lumen to bring Lumen’s Edge Bare Metal platform to Solana blockchain developers and operators. This process enabled Solana to avoid hardware investments that could delay the application development process and delay the delivery of applications to market. This arrangement also allows for a “pay-as-you-go” option via activating and deactivating bare metal servers as needed for resource usage.

Another benefit of this interconnection is the reduction of supply chain shortfalls, which make it more difficult for decentralized networks to scale access to available resources, resulting in the expansion and decentralization of the Solana network.

Reductions in latency and bandwidth usage helped improve the speed and efficiency of decentralized transitions over the edge network. In fact, five milliseconds or less is the designed latency in the Lumen environment, which provides excellent application performance.

“Emerging technologies like blockchain require what Lumen Edge Computing Solutions delivers – increased network security, performance and control,” said Bryn Norton, vice president of specialized sales at Lumen. “Edge computing and blockchain are complementary partner technologies.”