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Blockchain Infrastructure And Colocation Solutions

Blockchain Infrastructure And Colocation Solutions


Blockchain is used for much more than just cryptocurrency. In particular, it’s increasingly used as a mechanism for monitoring items through their lifecycle. Using colocation is often the best option for businesses implementing blockchain infrastructure. Here is a quick guide to why.

Blockchain hosting requirements

Blockchain networks have intense computational requirements. This means their hosting requirements can be roughly summarized as “high-performance everything”. Looking at this more closely, blockchain hosting requirements can be split into two categories. These are equipment and infrastructure.

Using colocation allows businesses to choose their own equipment. This is highly relevant to blockchain implementations as it means that hardware can be configured specifically for blockchain processing. For example, servers can be optimized for the specific needs of blockchain algorithms. This ensures the highest level of efficiency in transaction processing and validation.

At the same time, the colocation vendor will take care of all the associated infrastructure requirements.

Benefits of colocation for hosting blockchain networks

Here are 7 benefits of using colocation for hosting blockchain networks.

Power: Colocation providers routinely implement uninterruptible power supplies (UPSs) and backup generators to ensure continuity of service. Also, many colocation facilities are now generating at least some of their power on-site using renewable sources. This leaves them less vulnerable to power failures.

Cooling: High-performance infrastructure demands high-performance cooling, particularly if it is densely packed. Colocation facilities typically employ advanced cooling systems such as liquid cooling. These are much more efficient than traditional systems such as air conditioning. They also tend to be much more cost-effective.

Network connectivity: Colocation facilities are often located very close to internet exchange points. As a result, they can deliver the highest data-transfer speeds with the minimum of latency. This is exactly what is required for the blockchain. Moreover, colocation facilities are typically equipped with high-speed infrastructure (including fiber optics). They also make extensive use of cross-connects, interconnects, and redundant infrastructure.

Resilience: Colocation providers will typically provide uptime guarantees. These are generally close to 100%. In fact, some providers will actually offer 100% uptime guarantees. Not only does this literally guarantee resilience but it also makes ensuring that resilience the colocation provider’s responsibility.

Scalability: Blockchain implementations often experience fluctuations in workload. With colocation, businesses can implement both horizontal and vertical scalability. They can also burst into the public cloud if necessary.

Cost-effectiveness: The high-performance demands of blockchain processing require the highest standards in everything. Using colocation allows businesses to access state-of-the-art infrastructure at minimal upfront cost. Thereafter, they can benefit from shared infrastructure costs and economies of scale.

Security: In a colocation environment, clients take responsibility for securing their own equipment. The colocation provider takes responsibility for securing the data center infrastructure. This significantly lightens the load on the client. Moreover, many colocation fasciitis are compliant with recognized compliance programs and security frameworks such as ISO27001.

Security measures for blockchain nodes

Here are five measures colocation providers routinely implement to ensure that blockchain nodes have the security they need.

Physical security

Colocation facilities are protected by robust physical security measures such as perimeter barriers, access control and authentication systems, and monitoring and surveillance systems. Most of these systems operate automatically but with human oversight. Colocation providers also implement a high level of redundancy to ensure that security is not compromised by component failures.

Network security

Colocation providers deploy sophisticated intrusion detection and prevention systems that continually analyze incoming traffic for potential threats.

Some of these tools also take preventative action when threats are detected. Others just raise an alert for human operators. In either case, these tools enable swift defensive action to be taken.

Additionally, colocation facilities invest in scalable bandwidth and deploy dedicated DDoS mitigation tools. This enables them to absorb and mitigate large-scale attacks

Network isolation and segmentation

Colocation facilities implement network isolation and segmentation to separate different clients’ infrastructures and prevent unauthorized access between them. This technical measure enhances the security of each blockchain node by minimizing the potential attack surface and limiting lateral movement within the network.

24/7 on-site security personnel

Colocation facilities often maintain 24/7 on-site security personnel who monitor physical access to the data center. Having trained security professionals on-site ensures a rapid response to any security incidents, such as unauthorized access attempts or suspicious activities.

Regular security audits and assessments

Colocation providers conduct regular security audits and assessments to identify vulnerabilities and address potential risks in both their physical and digital security. These audits may include penetration testing, vulnerability scanning, and compliance checks. By regularly assessing and updating security measures, colocation providers ensure that the hosting environment remains resilient against evolving security threats.

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