Leveraging Cloud Infrastructure for Scalable and Secure Digital Finance Ecosystems

Abstract

Digital finance encompasses digital information feedback on credit credibility and electronic transactions based on digital currencies.In recent years, driven by blockchain technology and cloud computing, digital finance has boomed in developed countries, giving rise to new issues and potential risks.With the transformation of digital finance from 'crypto' to 'cloud', a new trend is emerging.Digital finance driven by cloud computing, whether on public clouds or on-chain clouds, offers a plethora of opportunities, but the migration to native digital finance systems based on cloud infrastructure would be fraught with risk.Cloud computing, with its convenience, flexibility, security and scalability, continues to become a mainstream technology in retail finance.Multi-modal federated machine learning and federated cloud transactions can potentially construct a decentralized market with permissioned access while achieving snapshot privacy.Blockchain will continue its widespread adoption in developer-centric financial backends as technology matures, with larger public chains evolving to handle benchmark trading volumes.On miniambilest, native public and enterprise banks, decentralized exchanges, NFT-backed loans and on-chain credit scores will rise, creating liquidity for illiquid assets and granting borrowing access to previously excluded participants.The rising popularity of cryptocurrencies may, on the contrary, accelerate KYC, AML and the adoption of CBDCs.Security issues in cloud computing may cause significant financial losses, as there have been cases in the past where public cloud services have suffered data breaches.In some cases, thousands of GB of customer financial and transaction data have leaked online and caused significant reputational damage, emphasizing the importance of choosing a reliable cloud service vendor [2].Observations made during web scraping consisting of an analysis of exchange user cases showed that data breaches have exposed customer account information, previous transactions, and even 3D model photos of the vault and keys used to hide hardware wallets in a bank deposit facility.Furthermore, the archive and backup of large-scale retail finance databases in the public cloud may incur long data retrieval delay of over 100ms.The lost backup can also put the entire institution at risk if the vendor service becomes bankrupt, or if a natural disaster damages their facilities.Despite the rapid year-on-year growth of this new financial market, currently, only limited assets, such as the Bitcoin reward for blockchain mining, can be traded on-chain.