Cloud Environments

Definition ∞ Cloud environments are computing services delivered over the internet rather than from local hardware. These virtualized infrastructures provide on-demand access to computing resources, including servers, storage, databases, networking, software, analytics, and intelligence. They offer scalability, flexibility, and cost efficiency, allowing digital asset projects to deploy and operate their applications without managing physical infrastructure. This paradigm supports the global distribution and accessibility of blockchain nodes and decentralized applications.
Context ∞ The reliance of many blockchain projects and digital asset platforms on cloud infrastructure raises discussions about centralization risks and potential points of failure. Concerns persist regarding the security and regulatory compliance of sensitive data hosted by third-party cloud providers. Future innovations may focus on decentralized cloud solutions or enhanced cryptographic methods to maintain data sovereignty within these hosted settings.