Blockchain and Cloud Computing: The Yin-Yang of Modern Technology
Tags: cloud, blockchain, web3
Published: 2024-02-05 15:52:36

![Mulan II](https://imgur.com/8RDGs4M.jpeg)
*Source: Disney Fandom*

My first exposure to the yin-yang concept was in the Disney movie [Mulan II](https://disney.fandom.com/wiki/Mulan_and_Shang%27s_Necklaces), where her grandfather, Fa Zhou, and her grandmother, Fa Li, decided to present the necklaces as a gift to Fa Mulan and her fiancee, Li Shang. The gifts came after the grandparents realized that though they were both connected, they still had opposing views towards each other, even though they were meant to be together.

[The yin-yang symbol](https://www.thoughtco.com/yin-and-yang-629214) is represented by a circle divided into two by a curved line. A part of this split circle is white, while the other is black. The white side has a black dot at the head, while the black side has a white dot at the head, as seen in the image below. So what does this represent?

The curved line found in the yin-yang symbol indicates that there is no absolute separation between the two sides, and while different, it shows that there is still a similarity between the two sides. This is further emphasized by the black dot on the white side and the white dot on the black side, meaning they can coexist pretty much together regardless of their differences. 

The yin-yang symbol illustrates a concept that we have been accustomed to all our lives, that there are two different sides to things, whether it be the moon and the sun, or male and female, or good and evil, there are and will still be shared similarities between them. The question is how an ancient Chinese concept, which existed before you were born, has to do with blockchain and cloud computing technology. 

This article will answer this question in the upcoming sections and show that both sides of the coin need each other as they both grow to reach their full potential.

![Yin to Yang](https://imgur.com/3y5nLyO.jpeg)

## Blockchain and Cloud Computing: Who's Yin and Who's Yang.

Let's leave out the names calling for now and get to what's really important: the argument is not necessarily about these technologies but rather what they represent. As we know it, the internet has been centralized for quite a while, with companies and organizations like Meta, Apple, Google, and many others responsible for our data and the resources that power our online activities. But as time went on, dissatisfaction set in as people were not very comfortable with companies knowing that much about them and is, more or less, the sole determinant of the activities they carry online.

This brought about the need for a new system that allows people to be in charge or, more realistically, be less dependent on large organizations for the progress of their online activities. The financial sector was the leading proponent of this idea, in that people were not getting comfortable anymore with the fact that how they move their money, to whom and where they send their money, and the speed with which the money is sent and received is mainly determined by the big banks.

This dissatisfaction gave rise to the concept of [decentralization](https://aws.amazon.com/blockchain/decentralization-in-blockchain/), where control is now placed in the hands of the distributed network rather than a centralized entity. This promise of privacy, security, and ownership has made more people lean toward blockchain rather than cloud computing technologies.

Looking at it from this perspective, answering the question of who's Yin and who's Yang becomes more accessible. Yin, which [projects](https://www.thoughtco.com/yin-and-yang-629214) an inward energy that is still, dark, and negative, can be likened to centralization which is represented by the nature of cloud computing, and Yang, which projects an outward energy that is, hot, bright, and cheerful can be seen in decentralization, ably represented by blockchain technology.

While we have shown how the yin-yang concept relates to blockchain and cloud computing technology, it's essential to keep in mind that the goal of this article is not to further cause division but to promote the shared similarities despite their divisions.

![More Interconnected Than You See](https://imgur.com/QEYWIo1.jpeg)
## Blockchain and Cloud Computing - More Interconnected Than You See


### Yin to the Yang

Despite their differences, an argument can still be made that both technologies need each other. A peak at the data from [ethernodes](https://ethernodes.org/networkType/Hosting) shows that the majority of Ethereum nodes are currently running on public cloud services, with Amazon Web Services (AWS), accounting for the highest percentage of nodes being run on it, which is about 39.5%, which is down 50%, [reported](https://cointelegraph.com/news/3-cloud-providers-accounting-for-over-two-thirds-of-ethereum-nodes-data) two years ago. Other cloud providers on the list are Hetzner Online (11.8%), OVH SAS (10.8%), Google Cloud (6.1%), and 

The justification for this is simple: setting up and running an Ethereum node is expensive and requires much technical knowledge. For a start, to [set up](https://tradewise.community/how-much-does-an-ethereum-node-cost-estimating-the-expenses-involved-in-running-an-ethereum-network-node-2/) an Ethereum node, you'll need to make hardware purchases to set up a system which may run into $500 - $1000, for essential components like CPU, RAM, motherboard, and SSD, and if you decide to go for high-end CPUs, or GPUs, or higher storage space, it may cost you even more.

After setting up the node, you will also have to factor in the electricity costs, keeping in mind that these nodes consume a lot of electricity, and depending on the demand and workload of the node, these costs may vary. As the node is now in operation, you'll begin to factor in maintenance costs, which may also vary due to the demand on the network. 

Knowing this, it's more profitable and more accessible to run an Ethereum node on a public cloud service like AWS than to host it on-premises, which comes with risks. Now, this method of specific up nodes on a centralized system is different from the purpose of the blockchain in the first place, which is decentralization.

But, considering how many nodes can be up and running on an on-premise basis alone, this will likely limit the network nodes' supply, thereby driving up the gas fees. Ethereum is already quite famous for its [high gas prices](https://www.coindesk.com/tech/2020/10/14/high-gas-fees-prevent-ethereum-from-being-ethereum/), which, if it gets significantly higher than it is now, may take away the incentive to use the Ethereum network, and at worst make it a liability.

### Yang to the Yin

While we've seen how cloud computing enables blockchain systems to thrive, keep in mind that, in reverse, the concept of decentralization is also helpful in cloud technology, especially in the case of data storage. [Studies have shown](https://devops.com/granulate-issues-findings-from-state-of-cloud-computing-survey-highlighting-underutilization-of-it-infrastructure/) that IT resources around the world are underutilized, but yet still consuming energy. In this case, decentralization of the cloud involves using these underutilized resources to serve the needs of those who want to refrain from using public cloud services due to fears of privacy and mismanagement of their data from these service providers. 

As with everything, there are associated risks, but the benefits of decentralization in cloud technology extend beyond simply optimizing resource utilization. By leveraging a decentralized cloud storage model, data redundancy is inherently increased, enhancing data availability and reliability. This is because data is not stored in a single location or controlled by a single entity but rather is distributed across multiple nodes in the network, significantly reducing the risks of data loss or downtime due to localized failures, cyber-attacks, or censorship.

Furthermore, decentralization introduces a new level of privacy and security for users. Unlike traditional cloud services, where data is centrally stored, and potentially susceptible to unauthorized access or breaches, decentralized storage solutions encrypt data and distribute it across the network, making it much harder for malicious actors to compromise data integrity or privacy. Each piece of data is only a part of the whole, and without access to all parts, the information remains secure and private.

Adopting blockchain technology within the cloud also fosters a more democratic and transparent ecosystem. Through smart contracts, transactions and interactions within the decentralized cloud can be automated and executed without intermediaries, ensuring fairness and reducing the possibility of manipulation. This level of transparency is crucial for building trust among users, especially in applications requiring stringent data integrity, such as in the medical, financial, and legal sectors.

However, transitioning to a decentralized cloud infrastructure is challenging. Issues such as data latency, the complexity of **data retrieval**, and the need for more robust network protocols must be addressed to ensure that decentralized cloud solutions can compete with the efficiency and speed of traditional cloud services. Additionally, the economic model of decentralized cloud computing requires further development to ensure that all participants in the network are fairly compensated for their contributions, whether in the form of storage space, computing power, or network bandwidth.

Despite these challenges, the potential benefits of integrating decentralization principles into cloud computing are immense. As technology advances and more solutions are developed to overcome current limitations, we anticipate a gradual shift towards a more decentralized cloud storage and computing approach. This shift promises to use the world's computing resources better and usher in a new era of the internet where privacy, security, and efficiency are not just aspirations but realities.

## Conclusion

Bringing this to a close, you might agree that decentralized cloud computing, if done right, will be the perfect sweet spot between cloud computing and blockchain technology, having immense benefits for both sides of the coin. While the technology may be in its nascent stage, it holds lots of promises to enhance both sides of the coin. So finger crossed, we might get to see something phenomenal afterall.

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