A Brief Intro to the Infrastructure Requirements of Blockchain

06/07/2022 | Featured Content, Infrastructure, Technology Education

If you’ve ever bought or sold anything on Craigslist, you understand why financial processes are so clunky. Meeting in a Starbucks parking lot or giving a stranger your home address never instills the confidence you would like.

Security with financial transactions is complicated and, up until this point, has typically required a third-party institution serving as the middleman who facilitates the transaction. Blockchain has created a new way for two institutions to interact while maintaining that needed trust.

Blockchain uses a digital ledger confirmed by a network of decentralized computers to guarantee the immutability and reliability of transactions. There have been challenges along the way, but despite that, it remains a promising technology, especially in the financial sector. However, these advantages don’t come without infrastructure challenges. We’ll look at the hardware requirements of blockchain and why organizations should embrace the technology only after considering these implications.

Blockchain and High-Performance Hardware Go Hand in Hand

Blockchain was created to provide users with a decentralized, transparent, and immutable system. It takes serious hardware to host the networks that blockchains run on. However, your exact needs will depend on your specific use case, so we’ll look briefly at blockchain’s computing needs in general. There are three essential characteristics of hardware that support blockchain.

  • High-performance computing capabilities
  • Redundant systems that protect data
  • Scalable hardware that allows the network to grow with your users

A notable feature of blockchain is that it distributes the computing needs between a network of users mining, staking, or performing some action that collectively powers the chain. Even so, those who want to develop a solution based on blockchain or are simply interested in mining or staking will need quality hardware.

Consider that when bitcoin first started, users were able to generate modest rewards with powerful CPUs. Today, to get similar returns, users need powerful ASIC miners dedicated solely to the task of mining. So if you’re interested in mining cryptocurrency, the most important component is a powerful processor. You’ll also need to do the math to ensure that your profit per day exceeds your electricity costs and pay off your hardware investment in an acceptable time frame.

For businesses exploring a blockchain solution, there are more considerations. For example, a manufacturer who wants to improve supply chain visibility would need to consider current IT infrastructure, supplier technology, and edge computing capabilities. These three pieces of infrastructure are all integral to the speed of your blockchain network — one of its main selling points.

What Might Internal Blockchain Infrastructure Look Like?

Blockchain isn’t that different from other advanced computing technologies like AI and machine learning. Processing power and storage are core elements. While the general blockchain work is distributed throughout the network, fast processing speeds will ensure that your system isn’t the bottleneck when processing transactions at scale. Storage is also indispensable as blockchain is data-heavy, and low latency storage will improve your network speeds.

At Equus, we help our partners build custom infrastructure for their advanced computing needs. We interview their team to understand their requirements and help them develop solutions that they can scale and deploy with ease. If you want to build hardware to support your blockchain needs, let’s talk.


Share This:

Related Posts

AI Featured Content

3 Advantages AI Can Provide to Fintech in 2023

Fintech faces more security threats than ever before. Consider three advantages AI can provide to Fintech organizations in 2023 and...
Read More
AI Featured Content

Why Should Retail Executives Keep Pushing AI in 2023

AI can improve many metrics retail executives care about, like sales performance. Learn which AI applications are making the biggest...
Read More
Infrastructure Data Management Featured Content

Enterprise Data Center Upgrades: Evaluating When and How To Expand Your Infrastructure

Data center technology can help businesses provide better user experiences while enhancing security. Learn how to make decisions that future-proof...
Read More
AI Featured Content Technology Education

Help Your Healthcare Organization Get More Out of AI

AI helps healthcare organizations offer more personalized care and greater service availability while reducing costs. Learn how you can maximize...
Read More
AI Featured Content Technology Education

What Habana Gaudi Performance Gains Mean for AI in Business

AI is permeating every corner of the business world. Learn how improving performance with Habana Gaudi can help improve business...
Read More
Technology Education AI Data Management Featured Content

Supervised, Unsupervised, and Semi-supervised Learning: What’s Right for Me?

Supervised and unsupervised learning are vital elements of machine learning. Learn the difference between each method and which is right...
Read More
Technology Education Featured Content

5 Reasons Businesses Should Consider LaaS

If your business occasionally needs lab computing power, you may be hesitant to invest in on-premise hardware. Could LaaS be...
Read More
Data Management Featured Content Infrastructure Technology Education

What Role Does Habana Labs Play in the Data Center?

AI is on the move, and businesses must adapt their infrastructure to support new capabilities. Learn how Habana Labs is...
Read More
Featured Content Data Management Infrastructure

Demystifying High-Performance Computing: A Guide for Technical Decision Makers

High-performance computing helps companies tackle complex problems, analyze massive datasets, and make quicker, better-informed decisions. Learn more.
Read More