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The advent of blockchains has provided industries with decentralized, secure, and transparent solutions. Although cryptocurrencies have got most of the limelight, blockchains now find applications in diverse sectors like supply chain, healthcare, finance, etc. Fundamentally, blockchains function on servers, each acting as a node in the network.
What is the blockchain application over servers;
What are real-world deployment scenarios for it;
What server infrastructure does it require;
How does node configuration take place;
How much data storage is necessary;
Which blockchain platform should be selected, and;
What are the challenges in blockchain?
Real-world applications of Blockchain over Servers
Supply Chain Management
Blockchain Servers provided transparency in Supply Chains as the server maintained a ledger which was immutable for the transaction. Companies such as IBM and Walmart have used blockchain to track food origin and ensure product safety. For instance, Walmart uses Hyperledger Fabric to trace mangoes within seconds as against a few days.
Financial Services
Decentralized Finance (DeFi) platforms rely heavily on blockchain servers to offer services such as loans, asset management, and trading without intermediaries. Ethereum is widely used for smart contracts in this space. For instance, Compound allows users to earn interest on crypto assets via lending protocols.
Healthcare
Blockchain servers safeguard patients’ sensitive data, ensuring privacy during data sharing among stakeholders. Development projects for better electronic medical records management through blockchain include MedRec and Guardtime.
Voting Systems
Blockchain servers for voting systems are being explored because of transparency and security provided by these servers. Estonia, for example, uses blockchain solutions for its e-governance and elections.
Real Estate
Typically overwhelmed with paper work, real estate transactions find themselves simplified through blockchain. Propy, a blockchain-based platform, automates real estate transactions and stores data immutably on blockchain servers.
Server Infrastructure Needed for Running Blockchain Nodes
Running a blockchain node means setting up a server that can accept the computation and storage needs of the blockchain network.
Key Infrastructure Components
1. Processing Power:
It is computationally harder for Blockchains like Bitcoin for mining. Servers generally use very high CPU or GPU power.
For lighter blockchains or validator nodes (like Solana, Cardano), high computational power is not required.
2. Memory (RAM):
An acceptable range will be 4 GB-8 GB of RAM for most blockchain nodes; however, high-performance nodes might require as much as 64 GB.
3. Storage:
Blockchain nodes require heavy storage for the ledger. Bitcoin’s blockchain exceeds 500 GB, whereas Ethereum’s stands at over 1 TB.
Extra read/write speeds? You gain bonuses if you have an SSD.
4. Network Bandwidth:
Nodes need to be connected to the Internet consistently at high speeds with very less downtime so as to be kept in sync.
5. Operating Systems:
Mostly, blockchain software supports Linux distributions, such as Ubuntu or CentOS. There is also some support for Mac and Windows.
Cloud vs. On-Premises
Cloud Servers:
AWS, Google Cloud, and Azure constitute the three siblings in this offering of scalable solutions for running a blockchain node.
On-Premises Servers:
This setup wherever desired to control the infrastructure very tightly by the firm is recommended.
The downside is that they are costlier to maintain.
Node Configuration
Configuring a blockchain node basically consists of several processes through which it can later duly participate efficiently and securely in that network.
Steps to Configure a Node
1. Download the Blockchain Software:
Download the client agreed upon by the blockchain platform (Bitcoin Core, Geth for Ethereum, and so forth).
2. Install Dependencies:
Some blockchains require additional software like Python, Docker, or specific libraries.
3. Initialize the Node:
Put a block on the chain by starting with the genesis block, the first and foundational block of the chain.
4. Set Up Wallets:
Set up wallets to send and receive transactions.
5. Network Configuration:
Set the firewall to allow communication through specified ports.
Configure public IP and NAT if necessary.
6. Security Measures:
Restrict the firewall and DDoS protection, update the software, etc.
Ensure, for node communication toward security, that SSL/TLS installation is set up.
Data Storage and Retrieval
Because blockchain nodes are decentralized and append-only, their data storage and data retrieval mechanisms differ from conventional databases.
Storage Procedures
1. Full Nodes:
Full nodes store the complete blockchain, thus providing high security and decentralization.
Example: Bitcoin full nodes are nodes that have been running all the transactions from 2009 up to this point.
2. Light Nodes:
Light nodes store just block headers.
Very suitable for devices with limited resources.
3. Archival Nodes:
Store the historical states for analytics-heavy introspective applications.
Data Retrieval
Nodes efficiently verify every single piece of information using Merkle Trees. Access to blockchain data can also be arranged programmatically by APIs and SDKs such as Ethereum’s Web3.js.
Storage Optimization
Sharding: Breaking up the blockchain into smaller slices allows the nodes to store only those pieces of data they want.
IPFS (InterPlanetary File System): Provides a decentralized off-chain data storage for off-chain data referred to in blockchain records.
Selecting the Right Blockchain Platform
It would always depend on what the application has to serve for, its scalability, and basically its primary objectives.
Keep in mind:
1. Consensus Mechanism:
Proof of Work (PoW): Bitcoin.
Proof of Stake (PoS): Ethereum 2.0, Cardano.
Delegated PoS: EOS, Tron.
2. Scalability:
Emerging platforms such as Solana and Avalanche aim to obtain very high throughput.
3. Smart Contract Support:
Ethereum leads the ranks as the smart contract platform. Afterward come Hyperledger Fabric and Binance Smart Chain.
4. Ape Ecosystem Team:
The larger the developer community, the higher the level of support and continuous improvements.
5. Cost:
What about fees for transactions, hosting costs, and hardware requirements?
6. Use Case:
Permissionless blockchain (Bitcoin, Ethereum) for the public.
Permissioned blockchain (Hyperledger, Corda) for enterprises.
Blockchain Technology Challenges
Of course, with all of those benefits, some issues nevertheless remain with the blockchain.
Scalability
Most blockchains tend to slow down when massive volumes are involved.
Congestion on the Ethereum network in 2017 brought with it very high gas fees thanks to the CryptoKitties craze.
Energy Consumption
PoW blockchains consume a massive amount of energy.
For instance: It is said that the energy consumed every year by Bitcoin is more than one of some small countries.
Security
There remain vulnerabilities within smart contracts that can be exploited.
For instance: The DAO millionaire(s) in Ethereum made off with $60 million in profits.
Interoperability
Minimal intercommunication between blockchains inhibits usability.
The matter is being resolved with Polkadot and Cosmos.
Regulatory Concerns
Governments consider blockchain regulation from a variety of viewpoints, albeit with some uncertainty.
Example: China’s 2021 cryptocurrency mining ban threw the global mining ecosystem into turmoil.
Data Privacy
Due to immutable and transparent data characteristics, public blockchains stand on the opposite side of privacy regulations like GDPR.
Server blockchain implementation heralds a new era of competing industries in the markets of decentralization, security, and transparency. However, in setting up blockchain nodes, one needs extremely robust server infrastructure with great consideration in configuration and platform selection. Scalability, security, and energy consumption stand today as some of the biggest challenges; however, with the further development of the field, these will be resolved, marking an efficient and accessible blockchain.