What is AWS Blockchain?
Blockchain has a dynamic use in the field of cryptography, finance, and more. Now, what we are discussing is a combination of the two most buzzy words: AWS cloud computing and Blockchain.
Have a look at the pit stops of the blog that will lead us to the final destination.
- What is Blockchain?
- The architecture of Blockchain
- Blockchain on AWS
- Uses of AWS Blockchain
- Future Scope of AWS Blockchain
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What is Blockchain?
The only way to comprehend blockchain is to understand why it exists.
Data of transactions is typically stored in databases, however, because the administrator can alter the data whenever he wants, it is not considered to be dependable. Hence the demand for a reliable system occurred.
For a system to be reliable, there should be two functionalities. First, it should have a decentralized structure, and second, no one should be capable of altering the data. Blockchain is that system!
The research on blockchain started in the 1990s but it came into existence, obviously virtually, in 2009. It is the same technology on which bitcoin is based. It could be the revolution for existing systems.
It is a technique to store data in a decentralized manner, which means there would be no central authority to control the entire information.
But the question that arises is how AWS makes its services decentralized.
The architecture of Blockchain
This digital chain of ledgers is made up of many blocks which contain information about transactions. A single block contains relevant information such as information about the transactions. The second thing that is stored inside the block is a hash. Hash is a unique code that is generated whenever a new block is created. The third thing that is stored in a block is a hash of the previous block. The very first block of the whole chain, which doesn’t store the hash of any block is known as the Genesis block. This whole big loop will be the reason for the security and integrity that are maintained by blockchain technology. If a person even tries to hamper the data of any block it will directly affect the whole chain by changing its hash. Hence Blockchain security is invincible.
Blockchain on AWS
Blockchain is usually only constrained to cryptocurrency. It is considered a suitable choice only for finance, which is nothing but a misconception.
Now businesses are beginning to recognize the benefits of blockchain technology other than crypto, whereas it appears that Amazon has already had a thorough understanding of its potential.
Amazon which provides Amazon Web Services is one of the most prominent cloud-based infrastructure companies which offers a few solutions for deploying blockchain on cloud-based applications.
When it comes to conversations concerning blockchain on AWS, the leading entries are the Amazon Quantum Ledger Database, Amazon Managed Blockchain, AWS Blockchain Partners, and AWS Blockchain Templates. Let’s talk about each tool individually.
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- Amazon Quantum Ledger Database
Amazon QLDB is a virtual database solution for physical ledgers. It can deliver a thorough transaction log with improved transparency, immutability, and cryptographic verification requirements.
Traditional Databases allow you to overwrite or delete data, which doesn’t bring a sense of authenticity to the data. Whereas, the data in Amazon QLDB is immutable and verifiable, hence bringing security to the information.
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- Amazon Managed Blockchain
The Amazon Managed Blockchain is essentially a tried-and-true method for easily building and managing highly scalable blockchain networks.
In Amazon Managed Blockchain, users can join public networks and manage scalable private networks with the easiest step. It manages and maintains your blockchain network.
- Amazon Blockchain Templates
AWS Blockchain Templates help users to create and deploy blockchain networks on the cloud using different types of blockchain frameworks. In more technical words, templates are used to configure and launch the AWS CloudFormation stack to create blockchain networks.
These are several approaches for developing a blockchain application on AWS. Blockchain on AWS has helped in expanding real-world applications. Further, we will be discussing these uses only.
Uses of AWS Blockchain
The more the technology contributes to the ease of humans more the demand will be for that technology. These two things are directly proportional to each other. Let’s find out the most common ways developers use the technology.
Well, well this use of blockchain is almost known to everyone, so why not start with readers’ favorite usage of Blockchain AWS?
Bitcoin led to the creation of the blockchain. It is the foundation of any decentralized currency.
The majority of blockchain applications run on the open-source blockchain platform Ethereum. One of the biggest cryptocurrencies on the market, ETH cryptocurrency, is also hosted by Ethereum. Without the very own existence of blockchain, it is impossible to envision cryptocurrencies.
- Smart Contracts
The old-school method is to enforce contracts through a central authority. When thought of making a decentralized system, Smart Contracts came into existence. It uses blockchain to enforce and verify contracts in real-time. These contracts are visible to everyone, hence have transparency.
- Lucidity in Government Documents
The government must have a clear picture of all aspects and for this, it has started to use blockchain to keep the data visible to the public. This terminology is especially useful for verifying documents.
- Decentralized Finance
The abbreviated name of Decentralized Finance is DeFi. It eliminates the middlemen by connecting lenders and borrowers directly, while the transaction is recorded and stored directly by the network.
We have so far isolated blockchain’s primary use from the vast array of other uses. The security of blockchain technology is its key selling point. As a result, it’s a fantastic technology with lots of room for app development.
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Future Scope of AWS Blockchain
AWS Blockchain has the nature of being a distributed and lucid technology, still, it manages to give privacy and confidentiality to its users and their data. Initially, the world has circled its use only in cryptocurrency. But now with the passage of time, the IT sector is recognizing its dynamic usage. It substantially improves the efficiency, ease, and smoothness of corporate processes and is expected to grow significantly in the next years.
Nowadays, users are concerned all about their privacy and confidentiality. In the coming years, blockchain would be the only way for companies to provide that. Blockchain can revolutionize the world.
Blockchain on AWS is a future-oriented combination of two technologies
It is essentially a proven method for easily building and managing highly scalable blockchain networks.
The blog is on its conclusive note, It has taught you the basics of AWS Blockchain and expects that now you have clarity on its concepts.
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