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Shivani Aggarwal for AWS Community Builders

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Do you know about Blockchain? How to build solutions using Blockchain ? Anything about AWS Blockchain ? - Well no worries , the following discussion would dive into the basic details of Blockchain ,Blockchain benefits, the way Blockchain works, and finally the Blockchain services on AWS.

The intersection between cloud computing and blockchain is leading to various changes in the approaches for conducting business.

Hence, the introduction of blockchain on AWS is extremely promising. Indeed , it is inevitable to notice a growing interest in an AWS Blockchain in recent times.

But first, back to basics!! Before going deep dive in Blockchain on AWS let’s do a run through on Blockchain technology.

What is Blockchain?

If you are thinking of cryptocurrency when you hear the term ‘Blockchain’ , then you are yet to discover the breadth of Blockchain Technology. It is a computer file for storing data. Or, to put it in more technical terms, it’s an open, distributed database. Instead of having a central database/entity verify the data, a network of individual computers verify and sync the stored data .

It is a new technology which governs that no one person or entity (say, a government or corporation) has control over the blockchain; this is a radical departure from the centralized databases that are controlled and administered by businesses and other entities.

If this sounds familiar, it’s because Bitcoin operates in the same way.

In fact, Bitcoin is the first example of blockchain in action.

Oh wait , but what is so great about Blockchain?

Let’s look at some of the biggest advantages of using blockchain technology:

It’s decentralized, Because it doesn’t rely on a central computer, it’s resistant to a lot of damage. If one computer fails, the system stays up. More importantly, the data is very hard to corrupt. To compromise data in a centralized system, someone just needs to change what’s in the central database. However, because there’s no central database on a blockchain network, a single computer would have to override the entire network, which is much harder to do.

You get a history of activity, not just a snapshot in time. When you look at a regular database, you’re getting a snapshot of data that’s up to date in that moment in time. Blockchains do this too, but they also maintain a record of all the information that existed before. It’s a database with history, if you like.

There’s no one, central point of attack, The fact that blockchain is a decentralized way of storing and accessing data makes the whole system incredibly secure – because, unlike a centralized database, there’s no one single point of entry for hackers. This makes it particularly useful for recording transactions in a secure manner.

And no centralized control, Because the system of record is decentralized and replicated in its entirety in multiple places, there’s no need for a central administrator and all the costs and infrastructure that comes with it.

How does Blockchain work?

In very simple terms, the file is comprised of blocks of data, with each block being connected to the previous block, forming a chain. Each block also contains a record of when that block was created or edited, which makes it very useful for maintaining a detailed system of record that cannot be corrupted or lost. Because the whole blockchain is duplicated across many computers, any user can view the entire blockchain. Transactions or records are processed not by one central administrator, but by a network of users who work to verify the data and achieve a consensus.

How does Blockchain work

For building a blockchain based solution businesses need to deploy their choice of blockchain frameworks on servers, create networks and manage them all the way to scale the solution. Managing networks and multiple entities can soon become a huge task and a cumbersome process, that is where the blockchain on cloud based solutions from AWS fits in.

Wooo.. Its time to go on CLOUD..

What does Blockchain on AWS include?

Blockchain on AWS refers to a small yet powerful assortment of offerings that support the enterprise blockchain initiatives of organizations. The Amazon Quantum Ledger Database, Amazon Managed Blockchain, AWS Blockchain Partners, and AWS Blockchain Templates are the prominent entries when it comes to discussions about blockchain on AWS. So, let us take a review of how enterprise blockchain on AWS looks like!

The AWS Blockchain ecosystem is tailored for addressing diverse business issues in the deployment of blockchain projects through cloud platforms. Let us take a closer reflection on each individual service in Blockchain on AWS to have further understanding regarding the applications of AWS Blockchain

AWS Blockchain Templates

AWS offers open-source templates for apps built on blockchain. They deploy the network on an ECS cluster or an EC2 instance running Dockers. In other words, the template links the app and the network.

Blockchain Templates

Then, developers can create their own blockchain network in their personalized Amazon VPC. Developers could configure the network Access Control Lists and VPC subnets easily for defining the characteristics and functionalities of their decentralized network. Furthermore, developers can also assign granular permissions for their blockchain network in AWS Blockchain Template through AWS IAM. The granular permissions will help in establishing restrictions on the resources that are accessible by Amazon EC2 instance or an Amazon ECS cluster.

Finally, developers could deploy decentralized applications by writing smart contracts and running them on their newly created blockchain network.

AWS offers two different templates: Blockchain for Ethereum and Blockchain for Hyperledger Fabric

  • Blockchain for Ethereum uses the incredibly popular and powerful Ethereum Network to power public blockchain applications. This template is by far the most popular method for building blockchain apps on AWS

  • Blockchain for Hyperledger Fabric lets you add permissions and access controls to the network. Use it for private blockchain networks.

For most blockchain applications, Ethereum is perfect. However, there are a couple more options that may be useful in certain settings. You lose some decentralization but gain other capabilities.

Quantum Ledger Database

Amazon’s Quantum Ledger Database (QLDB) is a managed ledger database that chains together changes in an append-only journal.

Quantum Ledger Database

It is a fully managed ledger database that provides a transparent, immutable, and cryptographically verifiable transaction log owned by a central trusted authority. Amazon QLDB tracks each and every application data change and maintains a complete and verifiable history of changes over time.

In comparison to ethereum, it’s managed by AWS, meaning it isn’t fully decentralized. This doesn’t mean all the benefits are lost. Data in the ledger remains unchangeable and secure, and the database is completely managed to save time and money. For ledger applications, it’s a great fit.

Amazon Managed Blockchain

Amazon Managed Blockchain is a fully-managed tool for maintaining a public or private blockchain network on Hyperledger Fabric or Ethereum. Developers can manage networks with single API calls.

Amazon Managed Blockchain

Again, it is managed by AWS, so some level of decentralization is lost in the process. However, architectural decentralization remains: data is still verified across many different devices in a non-changeable way. Thus, many of the security and reliability benefits remain completely intact.
Because of these security benefits and more, blockchain is an amazing technology with lots of potential in app development.
But no matter the method, blockchain on AWS has many uses.


On a concluding note, you can clearly note that the combination of the cloud and blockchain can induce positive outcomes. The best things about both technologies come together to offer the most feasible business solutions with assurance of productivity. The flexibility, security, and scalability benefits of blockchain on AWS are the foremost reasons to consider its potential. In the long run, the development and deployment of blockchain solutions through cloud platforms would gain mainstream recognition.

Top comments (4)

jasondunn profile image
Jason Dunn [AWS]

Great summary! 👍

sa3664 profile image
Shivani Aggarwal

Thank you very much . It means a lot coming from you :)

hridyeshbisht profile image
hridyesh bisht

Great article. We could even try to put a lambda function in place in case someone tries a 51 % attack

sa3664 profile image
Shivani Aggarwal

Good one !