Although there are still questions around blockchain storage, the popularity and hype surrounding the technology continues to gain momentum. IDC predicts that blockchain storage technology will hit $12.4 billion in worldwide spending by 2022. While this rate of growth is ever expanding, many companies still don’t fully understand all the details of this technology and oftentimes fall victim to the common misconceptions that surround it. In this blog, we will discuss a brief overview of blockchain storage and debunk some of those misconceptions.
Based on distributed ledger technology (DLT), blockchain serves as a decentralized database of information about transactions between multiple participants. These transactions are stored in the ledger as a series of blocks and populate the DLT chronologically. By distributing the ledger across multiple nodes that each contain a complete copy of the data, blockchain technology allows for all of the participants to view and verify the ledger.
Blockchain and Storage
Storage continues to be serious business for companies around the world. As these companies grow, so does their transactional data. When dealing with these growing pains, blockchain storage can help. A blockchain storage system prepares data for storage by creating data segments. These segments are encrypted, have redundant copies made, and are then shared across the decentralized nodes in the blockchain infrastructure. These transactions are later recorded in the blockchain ledger where they are validated and synchronized.
Five Common Misconceptions Blockchain Storage Misconceptions
- Blockchain is simply cryptocurrency
False: Blockchain is a digital ledger that is used to record transactions across multiple computers. The record involved cannot be altered without altering all of the subsequent blocks.
- Blockchain works well with old storage systems
False: Blockchain participants require constant access to extremely granular levels of data. To work effectively, users must have sufficient visibility, high availability and reliability. Being able to recover from a disruption and quickly restore from backup is crucial to those in the network. Operational strain can occur when a company retrieves and consolidates data from different nodes, so outdated storage systems just won’t do.
- Blockchain is so secure, data security takes care of itself
False: Data security will continue to be of utmost importance as hackers find new ways to exploit the technology. With blockchain, the stronger the isolation, the stronger the trust, as it becomes harder for any internal member or external hacker to damage the integrity of the network.
- Blockchain is resilient so your storage doesn’t have to be
False: As blockchain matures, cloud-based infrastructures will be a cornerstone for successful deployments. Enterprises are increasingly managing data for both public and private clouds across their hybrid and multicloud deployment models. Efficiently accessing and scaling that data without interruption to the network is extremely important in these models.
- Blockchain is too complicated to be worth the hassle
False: When properly implemented, blockchain technology can save money compared to other alternatives.
Regardless of the questions and misconceptions around the technology, the message is clear – Implementing storage solutions into blockchain technology can instantly improve a business’ performance, scalability and security by increasing transparency, trust and revenue.
If you’re interested in implementing some sort of blockchain into your business but are dealing with antiquated storage solutions, contact us today.
Senior Marketing Communications Manager
Key Information Systems