Blockchain Internet: Unchaining the Web

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Why Blockchain Internet?

The internet is approaching its thirtieth birthday, or thereabouts. We’ve come a long way since those early days of floppy discs and dial-up modems. Some would question that while the technology has improved significantly, the democracy of it has not. We humans have this little problem called hierarchies of control. That’s probably why governments, banks, and institutions play such a big role in our lives.

The internet is no different, as that issue seems to have also crossed over into the digital realm. Popular services like Google, Facebook, and Twitter to name a few are directing much of our information consumption and data storage these days. In the ’90s there was a lot more peer-to-peer information sharing going on. The dynamics have changed. What was initially built as a decentralized scientific sharing network has more or less morphed into a giant marketing tool for a few big players.

Gatekeepers

Blockchain internet advocates argue that much of the information we access or store on the modern internet is controlled by gatekeepers. In some cases, their presence is subtle and in others rather dramatic. Either way, it’s somewhat questionable whether these keepers hold our best interests at heart. They are, after all, accountable first to their stakeholders/governors. Let’s take a look at a few examples.

The Domain Name System

The Internet Corporation for Assigned Names and Numbers (ICANN) is a nonprofit organization based in California. It was initially formed to help the US government manage the early infrastructure of the internet. ICANN oversees the Domain Name System (DNS), which, in simple terms, translates the numbers identifying servers around the world into a more readable format like https://coincentral.com instead of something like http://104.31.67.109.

While ICANN provides a much-needed service, it also suffers from the same problems as large tech giants like Microsoft and IBM: centralization. US policy heavily influences ICANN and, even though it doesn’t regulate web content, it can censor domain names. The nonprofit has controversially maintained a six-year ban on .islam and .halal domain names. This is despite advice otherwise from its own oversight committee. For the most part, ICANN has promoted the free speech ideals of the internet since its inception in 1998. These recent events, however, call into question the real democratic future of DNS on a global stage.  

Government Censorship

If that was troubling then we only need to look across the Pacific to the heavy internet censorship found in much of Asia. In China, the government maintains strict controls over what content can be seen and who can be criticized. Internet communities aptly call it the “Great Firewall of China.” As observed below, internet censorship mostly affects countries in the East, but even countries such as the UK and US, long held as pillars of freedom, are seeing increased issues with censorship.

Search

Worldwide sharing of information is a tricky business. Search engines have become a ubiquitous way for people everywhere to find their favorite content. Latest estimates show that Google has captured 90 percent of the market share in this space. While it clearly provides a valuable service, it also wields a lot of power. Though many of us don’t question this, a one search engine to rule them all approach is probably not the best way to serve impartial content.

Social

The same can be said of social media. It’s doubtful that Mark Zuckerberg knew the full impact of his platform when he began building it in 2005. Connecting with others at a central meeting point online is not really the problem, storing our data there is. Hidden among hours of privacy statements that nobody ever reads lies the right of companies to use our data in any way they wish. Even Mr. Zuckerberg would probably admit that his pet project has deviated from its initial intentions.

In Facebook’s case, there’s the added element of identity management, since many websites use Facebook profiling to identify their users. What’s more, users face the very real possibility of losing valuable data. Though not recommended, many users post photos and create content on Facebook that isn’t backed up anywhere else. By now, it should be clear that distributed systems have some real advantages.

Some Blockchain Internet Solutions

ZeroNet

Tamas Kocsis is the creator of ZeroNet, a peer-to-peer website hosting solution. Zeronet removes traditional centralized hosting servers by allowing users to host their websites on other users’ machines worldwide. Sounds great but what prevents others from vandalizing your site? Bitcoin cryptography of course!

As long as you hold on to your private keys, your website remains secure. Only you can add, edit, and update content in the usual way. In addition, it’s also more robust. If one server/node goes down there are others to keep it running. Kocsis goes on to explain some of the challenges we face today as censorship encroaches on our personal freedoms:

Graphite Docs

Graphite docs is a decentralized document authoring solution similar to Google Docs. The difference? Google ultimately uses every piece of data you input for marketing purposes, whether it’s through search, docs, or maps. Data breaches are common these days, and large storage companies are quickly losing credibility as a safe way to independently manage user data.

With Graphite docs, the application distributes and secures your data with the same cryptography mentioned earlier. Only you, however, can access it. You still retain full control over your data at all times, from anywhere you happen to be on the planet.

Final Thoughts: Blockchain Internet

These are just some of the cases where decentralized cryptocurrency architecture is changing the nature of the internet. If you’ve used something like Graphite Docs or ZeroNet you will know that the process is still a bit technical and clumsy. This speaks to the development of the industry as a whole right now.

Just like the early days of the internet, the base layers of blockchain are currently being built out. Once developers iron out the kinks, we should see user interfaces appear that provide users with a more seamless interaction. Though, that doesn’t mean by any stretch of the imagination that the current technology is going away.

What are your thoughts? Are there any interesting applications you’re using to interact within the decentralized web? Be sure to tweet us how you’re playing your part in the blockchain internet future.

This article by RYAN SMITH was originally published at "CoinCentral.com": https://coincentral.com/blockchain-internet-unchaining-the-web/

J.P. MORGAN’S TOP 3 BLOCKCHAIN STOCKS

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While banks and large corporations have generally been skeptical towards blockchain, some of them have shown enthusiasm for a few applications of the emerging technology. One example is banking giant, J.P.Morgan Chase. 

 In what could be seen as a show of support, the bank has recently recommended three blockchain stocks that investors can add to their portfolios.  

J.P.Morgan is the largest of the top four U.S. banks, with an active plan towards blockchain and cryptocurrency adoption. The bank has handled first-class business for more than 200 years and has been focused on taking innovative approaches towards client solutions.

With a growing list of emerging technologies to choose from, the corporation has shifted its focus to accommodate blockchain tech.

WHAT DOES J.P MORGAN REALLY THINK ABOUT BLOCKCHAIN?       

Earlier in 2018, J.P.Morgan revealed the details of its blockchain patent that described a new system known as the Interbank Information Network. Created as a way to seamlessly facilitate otherwise tedious cross-border payments, the network showed for the first time, just how willing Chase bank was to accept blockchain market. 

In the J.P.Morgan way, the bank sought to fix the lapse in communication, a huge problem that has plagued remittance systems for a long time. Today, the process of making cross-border payments is tedious, inconvenient and time-consuming because money sent from one country to another goes through a couple of third-party financial institutions en route to its destination. 

This means that for remittance to occur, each point of contact needs to establish quick, secure communication with the next. Currently, the infrastructure that guides this process is inefficient and leads a lot of time wasted. Applications like the one J.P.Morgan is working on will allow users to track all of their payments easily no matter what third-party company it passes through.

On board with the project, the Royal Bank of Canada and Australia and the New Zealand Banking Group are some of the few partners that the bank is working with so far. 

In addition to this patent, filed in May 2018, J.P.Morgan has undergone other blockchain-related projects such as Quorum, an open-source enterprise network created in 2015. The project, which was created and operated on the Ethereum network, sought to tackle data privacy head-on. 

The bank also announced a partnership with the developers behind Zcash, one of the top 20 digital currencies by market capitalization and a utility cryptocurrency which focuses on privacy.

J.P.Morgan CEO Jamie Dimon has been vocal about his support for blockchain and its potential to solve numerous problems. In addition to all of this, the bank is one of the earliest members of Enterprise Ethereum Alliance (EEA), a community that works towards creating global solutions through the adoption of blockchain technology via the Ethereum Network.

WHAT ARE THE THREE RECOMMENDED BLOCKCHAIN STOCKS?

With its long fintech repertoire, it is easy to see where J.P. Morgan stands with adoption and investment in distributed ledger technology. Not only is the bank creating its own adoption systems, but it has also encouraged the public to get involved as well, by investing in emerging projects. Three projects, in particular, were recommended: Akamai Technologies Inc, DocuSign, and Ellie Mae.

AKAMAI TECHNOLOGIES INC.

This is a US-based delivery network and cloud service provider taking advantage of the growing number of blockchain adopters. Through its Edge platform, Akamai Technologies Inc. assists brands all over the world with understanding and customizing cloud-based solutions for their operations. This allows such brands to have a competitive advantage over others within the space, in areas such as speed, efficiency, and security. 

According to the company website, “Akamai keeps decisions, apps, and experiences closer to users than anyone — and attacks and threats far away. Akamai’s portfolio of edge security, web, and mobile performance, and OTT solutions are supported by unmatched customer service and 24/7/365 monitoring.

DOCUSIGN

Recommended by J.P.Morgan, this firm specializes in digital transaction management services. Lately, this involves utilizing blockchain technology as a way to digitize the process of signing contracts on the DocuSign platform. Created in 2003, the firm hopes to accelerate business operations since a lot of transactions between various parties in different industries require document signatures. 

Unfortunately, most times, the process of the agreement through document signing can be tedious, slow, error-prone, and expensive. DocuSign, which was around long before the emergence of blockchain, played an active role in pioneering e-signature technology. 

It uses a broad cloud-based platform to quickly automate document signing, enactment, and management processes, from any location, on almost any device. This saves time and renders the process seamless, fast and less expensive. 

According to the DocuSign official website, the platform is configured with over 350 built-in integrations with several popular business apps. The DocuSign API allows more than 400,000 customers (including millions of users) to embed the platform on their websites, apps, and custom workflows.

ELLIE MAE

Another reputable provider of cloud-based solutions, Ellie Mae focuses on solving problems within the mortgage finance industry. Since its creation in 1997, the firm has provided solutions to several real estate problems and handles 35% of all U.S. mortgage applications. Now, more than 20 years later, Ellie Mae is set to prove that blockchain technology can be used to manage the process of mortgages in a way that breeds trust through transparency. 

With the use of blockchain, the real estate industry can make several processes such as employment, verification, and inspection easier. According to the Ellie Mae website, “Our mission to automate the mortgage process is the guiding force behind our Encompass mortgage management solution and services, an all-in-one platform that gives lenders the power to cut costs and succeed in this hyper-competitive, zero-tolerance industry.” 

Staying true to their mission, Ellie Mae plans to automate mortgages so that lenders can have more high quality and efficient systems to work with. Their latest blockchain application known as Encompass is a record system which secures data and ensures that all relevant documentation is up-to-date. 

Within the system, lenders can originate, underwrite, and close loans without using multiple applications. Armed with innovative tools and a customer base spanning various financial institutions including credit unions, banks and mortgage companies, the firm is definitely one to watch.

FINAL THOUGHTS

Like several other large corporations, J.P.Morgan has made moves geared towards blockchain application. However, taking things a step further by recommending companies to investors is a positive push for adoption within the space. Every one of the three companies recommended by J.P.Morgan has one thing in common: they predate blockchain technology. 

This shows that the bank is more willing to recommend brands that are firmly rooted in their sectors and have prior experience handling other technologies. It also shows that these companies have a strong customer base and are not merely riding the blockchain hype train. Given the current tensions in the blockchain and cryptocurrency world, companies like this portray an image of credibility which, in turn, re-assures investors

Original Post: https://www.mintdice.com/blog/jp-morgans-top-3-blockchain-stocks

Top Supply Chain Blockchain Projects for 2019: Corporate to Scrappy Startups

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The general public may still associate the term “blockchain” with Bitcoin, but members of the crypto space know that the technology has far more applications. One field blockchain is on the verge of revolutionizing is supply chain management. Blockchain provides unprecedented levels of transparency in an industry once connected by paperwork and human error. 

How can Blockchain Influence Supply Chain Management?

Traditional supply chain operations rely on centralized methods that often result in oversight and mismanagement. Without proper communication, a significant number of things can go wrong. A centralized system means that everything from your package delivery to B2B purchases is subject to delays.

Blockchain’s decentralized and distributed nature, however, streamlines the way we exchange products. The technology generates permanent histories, enabling simplified tracking of goods from origin to ultimate destination. Documenting products’ journeys decreases the likelihood of fraud and double spending, and can assist with identifying the origin of any issues.

Without the need for intermediaries, blockchain dramatically reduces costs. It also provides relevant parties—such as manufacturers and carriers—with valuable insight into locations, assignments, transactions, and alterations.

The technology is not commonplace in supply chain management quite yet, but there are several companies diligently working to bring the technology to the forefront—and some have even made their projects available for others to use. Here are a few of the leaders:

IBM Enters Blockchain and Takes Over

IBM is arguably one of blockchain’s most prominent and influential corporate advocates. The company now boasts Watson Supply Chain, an application that enables customers to increase visibility and optimize supply chain data gathering. The platform is intended to help improve B2B collaboration and optimize order fulfillment and management.

IBM has also partnered with an organization known as RoadLaunch. This partnership is taking advantage of the corporation’s existing IoT and artificial intelligence platforms to circumnavigate pitfalls in the freight logistics industry. RoadLaunch’s blockchain network automates processes, process ubiquity, reduce freight risk, and minimize transactional collisions.

Walmart Embraces Blockchain

Walmart is also leveraging IBM’s blockchain network (co-developed with the Hyperledger Project), but this time to optimize foodstuff traceability for products such as chicken and bananas.

There are several components in the food industry supply chain, such as farmers, distributors, brokers, processors, and of course, retailers. Unfortunately, the process’s complexity leaves room for mistakes and deceit. Maintaining digital records available to all parties streamlines product deliveries (which is essential for perishable goods) and reduces waste.

Blockchain doesn’t just make transporting food easier—it helps avoid outbreaks. Walmart conducted a successful experiment with IBM to trace Chinese pork to prevent a scenario like the E. Coli outbreak in spinach that killed three people in 2016 from reoccurring.

UPS Enters the Blockchain Alliance

At the end of November 2017, United Parcel Service (UPS) became part of the Blockchain in Transport Alliance (BiTA). John Larkin, an analyst from the investment group involved in the project known as Stifel, says:

“In our view, blockchain will combine with the truckload pricing futures market, with data analytics-assisted [and] artificial intelligence-assisted real-time matching of loads and empties.”

UPS sees blockchain’s potential to deliver packages quickly and cheaply to customers. The company also recognizes that the day-to-day work of data providers, software providers, and trailer-leasing companies could benefit from the technology.

Blockchain Projects Doing Supply Chain

The supply chain industry is intertwined with numerous others. Blockchain is not limited to the big players on the field, either. Here are three companies that specialize in blockchain who are aiming to optimize supply chain management across a variety of professional spaces.

Waltonchain

Waltonchain is one of only a few blockchain/supply chain projects to incorporate both digital and physical elements into one system. To do this, the company leverages the Internet of Things, but the combination creates what they call the “Value Internet of Things.” VIoT is intended to decentralize the IoT development process.

The Waltonchain is technically a “parent” chain. As new business adopt the system, it generates “child chains” to connect industries. The overall network is anchored with a token known as WaltonCoin, which also employs RFID chips to create a new kind of business ecosystem that ensures traceability, security, and authenticity.

RFID technology (radio frequency identification) is all about communication. It relies on radio signals to identify specific targets—such as access control systems that libraries use. RFID tags attached to food products is the interface enables their connection to the blockchain, and therefore includes them in the Value Internet of Things.

Provenance

Provenance is another project disrupting supply chain management, but it’s doing so with an environmental and ethical emphasis.

Current supply chain centralization and disconnection results in products (and their transference) that negatively impact nature and communities through unethically sourced materials and wasted vehicle fuel.

Blockchain, however, can provide consumers with insight into where their products originate, allowing them to verify if something is environmentally harmful or genuinely benevolent.

The company’s founder, Jessi Baker, initially launched the company as a side project in 2013, but now has approximately 250 clients. She says it is essential that companies and consumers know more about where their products come from:

“Opaque supply chains present a huge risk to companies. There could be slavery in their supply chains, there could be huge environmental damage, but just because that information is one or two tiers removed from your core operations doesn’t mean it isn’t absolutely integral to your business.”

Supply chains can be convoluted, but Provenance intends to make it easier for “businesses that make and sell products to share information about the people, places, and materials that create those products.”

EverLedger

Food, data, and packages are not the only things that could benefit from a more transparent supply chain: diamonds, too, are frequent subjects of deception.  

EverLedger has created a blockchain application that tracks assets over the course of their lifetimes. They make notes of history, defining characteristics, and ownership to generate an immutable record via blockchain.

Due to diamonds’ high value, the company reports that an annual total of $45 billion is lost to insurance fraud, and 65 percent of false claims pass undetected. Diamonds are also commonly trafficked and stolen goods. EverLedger’s blockchain can trace an asset back to its origin to help prove ownership in the case of theft and attest to authenticity.

Conclusion

When we can provide irrefutable evidence of origin and denote whenever products change ownership, it’s possible to create a safer and trustworthy economy. From production to transportation to delivery, blockchain technology is poised to alter the future of supply chain management forever—and there are multiple projects eager to do so.

This article by JACOB YOSS was originally published at "CoinCentral.com": https://coincentral.com/top-projects-blockchain-supply-chain/

WHAT IS THE PO.ET CRYPTOCURRENCY PROJECT?

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The Po.et (POE) cryptocurrency project is a venture that directly addresses issues with content ownership and piracy. Every other day, creatives are faced with the hassle of confronting those who have duplicated their work.

Often, this leads to lengthy correspondence and unplanned lawyer fees. Added to the fact that many content creators find it difficult to gain the necessary exposure on large platforms, this situation can be extremely frustrating.

Unlike most crypto projects which are primarily focused on financial transactions, Po.et is based on provenance. It is one of the few projects that are aimed at solving pressing issues in the area of content creation and distribution.  

PO.ET PROJECT EXPLAINED

Defined as a decentralized protocol for content ownership and provenance, Po.et is a project aimed at creating a foolproof digital licensing system. To achieve this, the project’s developers are leveraging the immutability of blockchain, a decentralized digital ledger technology.

According to the Po.et official website, the platform stores time-stamped information for the sake of posterity. This will help authors establish a claim to their work and as a result, it would be difficult for others to plagiarize it. The project has been ongoing for about a year, since its initial release in 2017 and has drawn a lot of attention so far.

HOW DOES IT WORK?

As most blockchain networks do, Po.et requires a way to secure its blockchain through consensus. It does this via a consensus mechanism termed “Proof of Existence”.

Each piece of content added to the Po.et marketplace is given a unique immutable fingerprint that has no single point of failure. There is also no need for a third party, not even a publisher for the distribution of content.

Po.et is compatible with web technologies like Javascript and WordPress, ensuring that it can be integrated with various websites, as necessary.

WHAT IS POE CRYPTOCURRENCY?

The Po.et ecosystem is largely underpinned by its own digital asset, known as POE cryptocurrency. It is primarily used in the Po.et marketplace and has three major uses, including:

• Bootstrapping the network
• Raising capital
• Acting as an incentive

By bootstrapping the network effects of Po.et, POE cryptocurrency provides a solid foundation for its ecosystem. It acts as a common unifying factor for users, and other stakeholders, creating a community that is well-invested in the progress of the project.

Through various fundraising ventures including Initial Coin Offering (ICO), Poe will serve as the primary token and symbol of investment. By offering up their tokens to investors, the development team can raise funds to further develop and run the platform smoothly.

As with almost anything, people will be more likely to promote and adopt a platform like Po.et when there are incentives to do so. This is especially true for platforms that plan to create active communities around their products. The distribution of POE to early investors is a way to solidify their trust and loyalty in the platform for a long time.

BENEFITS OF POE

The Po.et network along with its cryptocurrency offers four main benefits to its users, namely: attribution, discovery, monetization, and reputation.

ATTRIBUTION

This refers to the ownership aspect of the network. It describes a case in which content creators no longer have to jump through hoops, just to prove the ownership of their work.  It is unrealistic to claim work that was simply created and published with no solid proof. Authors often find themselves having no real case, especially if their work has been plagiarized by a much larger competitor.

Since POE cryptocurrency creates a secure, immutable digital licensing system, it is easy to verify content ownership. This will eliminate plagiarism and save creators the time and stress put into protecting their work. Such a blockchain-based system is easier, faster and less resource-intensive than the traditional copyrighting system.

DISCOVERY

Normally, on content sharing platforms like Medium.com, Twitter and even Facebook, the more followers a user has, the greater the reach of their work. This leads to a need to build followers through organic marketing.

It can be especially difficult on a platform like Twitter where there is so much content flying around from over 100,000 active users. In fact, the entire web is so populated with content that standing out requires an enormous amount of work.

POE token currency allows users to share their work in its marketplace as well as curate content for their followers. This, in turn, drives engagement and the value of the tokens since tokens are allocated according to the quality of content.

MONETIZATION

One of the factors than continuously hinders the monetization of content is plagiarism. Why would anyone want to pay for a creator’s work if they can simply get it somewhere else at a cheaper price or even for free?

Plagiarism takes away the common person’s incentive to pay for content. However, once this hurdle is jumped, it becomes possible to reap the full benefits of content monetization. Using the Po.et marketplace and cryptocurrency, content creators are provided with a way to carry out safe verifiable transactions, a secure means of exchange and a central location where their work can be viewed.

In addition to this, they would be able to create custom marketplaces and set up micropayment channels. This makes monetization easier for the content creators as well as their audience who now have a secure way to access content.

REPUTATION

As transactions progress over time, the Po.et network continues to build reputations according to the behaviors of various entities. This further aids security by allowing the platform to form a comprehensive profile on possible threats. The reputation record can be viewed by anyone on the network and builds trust in the community.

WHAT IS THE PROGRESS OF PO.ET IN ACHIEVING ITS GOALS?

The Po.et team has created a solid roadmap which they have grouped into different eras in the platform’s development. These eras include the Ptolemaic era, Rosetta era, and the Gutenberg era, as followsThe Ptolemaic Era

This marked the beginning of the Po.et platform’s journey after the realization that blockchain could provide solutions outside the financial space.

THE ROSETTA ERA

Initially, the project was focused on running its basic version seamlessly. However, that changed in the Rosetta era. Firstly, the POE testnet was launched on the Ethereum blockchain like other decentralized applications. This allowed the platform to carry out its ICO which raised over $10 million worth of cryptocurrency. Po.et also released its Wordpress plugin which enables the addition of timestamps to blog posts.

THE GUTENBERG ERA

This describes the current phase of the Po.et project in which the development team is focusing their efforts on scaling the network. They plan to achieve this by scaling up from their earlier testnet to the Bitcoin Mainnet.

As for POE coin, the team will add support for claim batching and automated workflow which will, in turn, allow the deployment of production level scale without limitations caused by the blockchain itself.

FINAL THOUGHTS

Po.et has made considerable progress since its creation. Till date, its team continues to put a huge amount of marketing effort into sensitization sessions aimed at driving adoption. Content creators, who form its primary audience, are embracing the platform along with the benefits it offers. This gives them a visibility advantage, especially considering how difficult it is to have a notable presence on platforms like Google and Facebook. Ultimately, the platform has certainly positioned itself as one of the projects to watch within the cryptocurrency space.

Original Post: https://www.mintdice.com/blog/what-is-the-poet-crypto-project

How Infrastructure as a Service (IaaS) Meets Blockchain

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Cloud computing has enabled many companies to outsource much of their IT operations. Doing so eliminates the need for enterprises to run their own servers, software, and databases. Infrastructure is a fundamental need, and these days many organizations leverage cloud computing to outsource all of their IT infrastructure. This is known as infrastructure as a service or IaaS.

Currently, a few big companies dominate the sector. However, blockchain provides new ways of handling infrastructure as a service that could prove disruptive to how many of the big tech firms operate today.

What Is Infrastructure as a Service (IaaS)?

Infrastructure as a service is also called hardware as a service, which is perhaps a better way of explaining it. Enterprises need necessary hardware such as servers, storage, or components to run a network of computers.

It used to be the case that organizations would need to run internal data centers that housed this kind of hardware. However, the advent of cloud computing now means that an organization can outsource its infrastructure requirements to an external provider. The provider of infrastructure as a service hosts a datacenter and allows its clients to access the infrastructure remotely. This is usually charged on a pay-as-you-go model.

For enterprises with fluctuating workloads, using a cloud IaaS provider can work out far more cost effective and flexible than self-hosted infrastructure. Consider a company that’s developing a new piece of software. While the software is under development, the company needs additional computing resources that will be redundant once they have the software up and running. So it uses infrastructure as a service to procure the necessary resources when needed.

Some well-known tech companies provide IaaS including Amazon AWS, Microsoft Azure, and IBM. Other providers specialize only in cloud computing, such as Digital Ocean or Cloudstack.

Challenges of Infrastructure as a Service

Despite that it’s becoming a more popular model, there are some challenges for IaaS users. Bandwidth is a common issue. A provider of infrastructure as a service is only leasing out their own hardware for multiple clients to use. Therefore, if one client has a sudden spike in workload that utilizes more resources, this can adversely affect other clients. Similarly, a hardware outage at the provider may affect many or all clients.

An IaaS user doesn’t necessarily have insights into their provider’s infrastructure, so understanding what’s behind a sudden slowdown or outage is impossible. This lack of visibility also means that users cannot monitor and manage systems as they would using their own internal datacenter.

Billing is another issue, as IaaS providers tend to bill for everything on a very granular level, meaning users can often be surprised by their actual usage when the bill comes in.

Where Does Blockchain Come In?

Although blockchain hasn’t yet taken hold of infrastructure as a service in any significant way, it could still happen. In itself, a blockchain is a form of shared system infrastructure, as many machines work together to keep a blockchain running. Therefore, it’s possible that in future a cloud computing service could utilize the idle capacity of any number of CPU’s and GPU’s working as part of a decentralized network.

This could apply to different infrastructure elements. Cloud computing can leverage decentralized computing power itself, in the same way that a centralized datacenter leases out capacity in today’s cloud computing models. Memory and data storage could also be decentralized in a similar way.

So, imagine a decentralized network of computers. Some in the network will be working on particular tasks, taking computing power and storage from others on the network. This isn’t a parasitic relationship. The arrangement can be monetized, so those machines using power over their own capacity are paying in digital tokens to those leasing out their idle capacity.

Will This Mean Big IaaS Tech Firms Become Obsolete?

It’s tempting to imagine decentralized networks “sticking it to the man” and taking over from current centralized models. But big tech firms like AWS or Microsoft could actually benefit from this kind of decentralized computing ecosystem.

Consider that a centralized infrastructure as a service provider must try to hold sufficient hardware to meet the changing needs of its clients. At the same time, it must hold such an excess of capacity that sits idle too much of the time.

A prominent provider could actually participate in a decentralized infrastructure network and lease out any overcapacity to remain profitable. They can also leverage that network by paying for extra infrastructure if their client needs suddenly outweigh their available capacity. It’s a win-win situation.

There are already some blockchain projects operating in this space. Although none of them are currently marketing themselves as a full infrastructure as a service provider, both Golem and DeepBrainChaincontain elements of IaaS. This is more apparent when you consider that both these projects aim to provide computing power for AI, and AI developers are currently one of the biggest growth drivers for IaaS and cloud computing providers.

Storj provides a similar service but for decentralized hard disk memory space. MaidSAFE is perhaps one of the only blockchain projects with ambitions of providing multiple elements of IaaS, as it ultimately aims to cover both decentralized computing power and storage.

Conclusion

Infrastructure as a service is a growing market, so there’s plenty of opportunity for blockchain projects to get involved. The projects named here are still young compared to the big, established tech firms. Also, blockchain continues to battle issues of scalability and resilience. Therefore, it’s unsurprising that none of them have yet proved a significant rival for AWS or Microsoft Azure. However, it’s still possible that we could soon see a shift, where infrastructure as a service depends partially, or even totally, on decentralized networks.

This article by SARAH ROTHRIE was originally published at "CoinCentral.com": https://coincentral.com/infrastructure-as-a-service/