An exciting synergy between blockchain and edge computing is reshaping the data management and processing landscape. Blockchain, often associated with cryptocurrencies, uses a decentralized framework to provide secure transactions and data integrity. Meanwhile, edge computing decentralizes data processing by bringing it closer to the data source, reducing latency and improving efficiency.
A partnership between these two forces holds immense promise for businesses seeking scalable and versatile solutions. In this blog post, we’ll explore the collaborative potential of blockchain and edge computing and the opportunities it offers for improved network efficiency, real-time applications, and transformative advancements across industries.
Understanding blockchain and edge computing
Before exploring the possibilities for symbiotic relationships between these two technologies, let’s gain a deeper understanding of each one.
What is blockchain?
Blockchain technology, at its core, is a distributed ledger that records transactions across computers networks in a way that provides immutability of and security for the data. Each transaction is grouped into a “block,” which is then cryptographically linked to the previous block of information. This forms a chain of blocks — hence the name “blockchain.” This chain is distributed across multiple computers (nodes) in the network, ensuring transparency and security and preventing data manipulation.
Hedera uses distributed ledger technology (DLT), but it is not technically a blockchain. Hedera Hashgraph uses directed acyclic graph (DAG) technology to build consensus. It offers enhanced scalability, security, and fairness, making it a prominent player in the realm of decentralized networks. Since blockchain is better known, we will use it in this article to refer to all DLTs.
What is edge computing?
Edge computing brings computation of data as close as possible to the collection of the data. Cloud computing relies on centralized data centers that can pull in and store large amounts of data as well as apply massive computer processing capabilities. It’s a powerful tool, but its centralized nature makes it subject to problems with bandwidth, privacy, autonomy, and processing speed. Edge computing distributes computational resources to peripheral networks, reducing the workload on central cloud servers. This proximity improves efficiency and enables real-time or near-real-time data processing.
This is particularly crucial in the era of artificial intelligence (AI) applications and the Internet of Things (IoT), where real-time data processing is key. For example, the massive growth in medical monitoring devices makes them ideal candidates for edge computing, so that problems can be detected and responses begun more quickly.
With edge computing, devices can process data locally, enabling faster response times and more efficient use of network resources. As the demand for AI applications grows, edge computing can help shape the future of digital infrastructure and drive innovation.
How do blockchain and edge computing work together?
The main benefit of combining blockchain with edge computing is the ability to achieve secure communication and data processing without relying on centralized servers or third-party services. But how do these technologies work together?
The relationship between blockchain and edge computing is based on their shared reliance on distributed networking and decentralized systems. Blockchain provides secure, decentralized transactions and data integrity. Edge computing brings processing capabilities closer to data sources and away from centralized servers.
Another key to this collaboration is the use of powerful graphical processing units (GPUs) often found in edge computing devices. These GPUs can accelerate blockchain transaction processing and increase the speed and efficiency of data verification and validation. By harnessing the computational power of GPUs, edge computing devices can make blockchain operations significantly faster, providing timely and seamless transaction processing.
Also, integrating IoT devices into the edge layer can increase the synergy between blockchain and edge computing. IoT devices, which may have limited resources for executing blockchain operations, can offload these demands to the edge layer. This decentralized approach not only improves efficiency but also enhances scalability by distributing computational tasks across the network.
Blockchain’s distributed ledger technology provides a secure framework for storing and processing data — with immutability and transparency — while edge computing boosts efficiency and reduces latency. In essence, their convergence offers a holistic solution for businesses seeking to improve data management and processing.
Benefits of using blockchain and edge computing
The integration of blockchain and edge computing offers several compelling benefits for businesses:
-
Improved network efficiency and scalability. By distributing computing resources closer to the data source, the combination of blockchain and edge computing reduces network congestion and enhances scalability.
-
Enhanced data processing for real-time applications. Particularly relevant for AI applications, this tandem enables faster and more efficient data processing, facilitating real-time decision-making.
-
Streamlined, secure structure. By leveraging both technologies, businesses can obtain secure communication and data processing without relying on centralized servers or third-party services.
Blockchain and edge computing: Real-world examples
Several collaborations highlight the practical applications of edge computing and blockchain:
-
Hedera and Dell Technologies. Dell Technologies has joined the Hedera Governing Council to explore ways to leverage DLT for enterprise applications. Dell will run its own Hedera node and develop apps for edge computing and other decentralized environments. Hedera’s ecosystem will support Dell’s work on initiatives that focus on the decentralization of data. One example is Project Alvarium, which uses DLT to track data confidence in distributed edge computing systems.
-
Hut 8 and Zenlayer. Hut 8, a leading provider of blockchain infrastructure, and Zenlayer, a provider of edge computing solutions, have forged a strategic partnership to deliver blockchain services over edge networks. This collaboration aims to leverage the principles of Web 3.0 to enhance data flow and intelligence in data-intensive applications. By integrating Web 3.0 into their offerings, Hut 8 and Zenlayer seek to empower end users with greater control and ownership over their data. The goal is to create a more personalized, secure, and enriched digital experience.
-
Solana and Lumen. The Solana Foundation, a nonprofit blockchain organization, recently collaborated with Lumen to integrate Lumen’s Edge Bare Metal platform with the Solana blockchain ecosystem. This integration allowed Solana developers and operators to leverage Lumen’s infrastructure without significant hardware investments, streamlining application development and accelerating time to market. The partnership offers a flexible “pay-as-you-go” option, allowing users to activate or deactivate bare metal servers based on their needs.
Challenges of combining blockchain and edge computing
While the combination of blockchain and edge computing holds immense potential, it is not without challenges:
Interoperability
The interoperability of different blockchain protocols and standards with edge computing infrastructure presents a significant challenge. Blockchain technology continues to evolve, and new protocols and standards emerge every day, each with its own set of specifications and requirements. Integrating these diverse protocols with edge computing architecture can pose compatibility issues and hinder seamless communication between devices and networks.
Therefore, businesses must invest in interoperability solutions and standards that facilitate seamless integration and interoperability across disparate blockchain platforms and edge computing environments.
Data privacy and security
Privacy and security can pose challenges in integrating blockchain and edge computing due to the unique characteristics of both technologies. Edge computing involves processing data closer to its source, such as sensitive information collected, processed, and transmitted by IoT devices. When blockchain is introduced into this environment, all transactions are recorded on an immutable ledger, potentially exposing sensitive data to unauthorized access or tampering.
Additionally, the immutable nature of blockchain transactions may pose challenges for data privacy, because once data is recorded on the blockchain, it becomes permanently accessible. Maintaining data privacy on the blockchain might require robust encryption, anonymization, and access control mechanisms to protect sensitive information.
Scalability
Scalability issues stem from the inherent limitations of blockchain networks regarding transaction throughput and processing speed. Blockchain networks, particularly public ones, may struggle to efficiently handle a high volume of transactions. This can lead to network congestion, increased transaction fees, and longer confirmation times.
The scalability challenges become apparent when combined with edge computing, which often involves many IoT devices generating data and transactions. Edge devices may produce a significant volume of transactions that need to be processed on the blockchain, potentially overwhelming the network’s capacity. Managing this influx of transactions while maintaining performance and responsiveness requires innovative solutions to optimize resource allocation, improve transaction throughput, and enhance network scalability.
The potential of blockchain and edge computing
Hedera — the only public ledger that uses Hashgraph Consensus, a faster, more secure alternative to blockchain consensus mechanisms — has answers for these challenges.
-
Interoperability. Hedera’s Ethereum Virtual Machine (EVM) smart contracts, along with its native tokenization and consensus service APIs, enable developers to create apps and ecosystems that integrate well with other systems.
-
Data privacy and security. Hedera uses the asynchronous Byzantine Fault Tolerance (aBFT) Hashgraph Consensus algorithm to provide the highest standard of security.
-
Scalability. Transactions on Hedera cost an average of $0.001 and Hashgraph achieves high-throughput with 10,000+ transactions per second today. Hedera can handle the massive flow of data involved in edge computing. Its robust codebase provides massively scalable and reliable network infrastructure.
By harnessing the synergy between blockchain and edge computing, companies can unlock new levels of efficiency, scalability, and security. As these technologies evolve, companies and industries that embrace blockchain and edge computing can drive innovation and outpace the competition.