When the term "cloud" first emerged in the field of information technology, particularly within the IT infrastructure services industry, it was widely understood to mean "on-demand access to computing resources via the Internet." Since then, AWS, Microsoft Azure, Bluemix, and IBM have led the industry in providing centralized cloud hosting services.
Thousands of dedicated cloud hosting providers compete with the major hyperscalers by offering free technical support, and backup and business continuity services at a lower cost than the so-called major clouds.
However, cloud computing has always been a technology, service delivered from a cluster of computers, in which computational work is distributed among different server nodes. Is the cloud equivalent to distributed computing, and therefore a distributed web service delivered over the Internet? To a certain degree, it is. In the case of "compute clouds," processing operations and data storage services are delivered from separate groups of server appliances that together form a compute cluster, or a "cloud." These clouds distribute computing resources. However, this distribution occurs within one data center, in the same physical location. Therefore, in the original technological sense, the "cloud" (also "cloud computing") is distributed within the same computing network and geographical location.
The Distributed Cloud
Another level of distributed computing infrastructure exists where computing services, including data storage and application hosting, are delivered from geographically distributed computing systems. This geo-distribution of computing resources and delivery of cloud computing services occurs when a decentralized computing cloud is in place.
Unlike distributed cloud systems, which are infrastructures housed in one physical location and owned by a single entity, decentralized cloud infrastructures are ecosystems of computing appliances owned and operated by many independent entities. These entities create networks of interconnected, decentralized server appliances connected to a single software platform. These networks provide cloud services, such as storage, computing, and networking, without relying on a centralized provider.
In a decentralized cloud infrastructure, each user contributes a portion of their computing resources, such as processing power, storage space, and bandwidth, to the network. This creates a distributed system that is more resilient to failures and less vulnerable to cyberattacks because there is no central point of failure.
Decentralized cloud infrastructures use consensus mechanisms, such as proof-of-work or proof-of-stake, to validate transactions and prevent malicious actors from taking control of the network. This ensures the network's security and reliability. Additionally, data encryption and other security measures protect user data and prevent unauthorized access.
Decentralized cloud infrastructure has the potential to transform how we store and manage data by offering greater privacy, security, and control over personal information. However, it is still in the early stages of development and faces challenges regarding scalability, interoperability, and user adoption.
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