Advancing Cloud Ecosystems: The Role of Serverless Computing and

Blockchain in Modern Infrastructure

S. Sivaranjani

, K. Ramya

and R. Anandhi

Department of Information Technology and BCA, Dwaraka Doss Goverdhan Doss Vaishnav College, Chennai, Tamil

Nadu, India

Department of Computer Science, Dwaraka Doss Goverdhan Doss Vaishnav College, Chennai, Tamil Nadu, India

Keywords: Cloud Computing, Serverless Computing, Blockchain Technology, Immutability, Cloud Security.

Abstract: In the digital age, cloud computing has transformed the way services are delivered by providing unparalleled

cost-effectiveness, scalability, and agility. What is Serverless Computing An application of Cloud Computing,

Serverless computing is distinct from its models in that it alleviates developers from the burden of

infrastructure management so they can focus on the code. Key advantages of this strategy include lower costs,

automated scalability, and faster time to market. To complement this development, blockchain technology

that provides decentralized technical approaches to manage data, improves security, transparency, and trust.

Combining Blockchain with Serverless Architectures Enable Organizations to Build Future-Ready

Applications with Improved Operational Efficiency and Robust Security Capabilities This paper explores how

these revolutionary technologies are converging and how they are likely to converge to build the next

generation of applications.

1 INTRODUCTION

Cloud computing is a paradigm shift in the way

computing resources are provisioned and consumed.

It has transformed how organizations and people

work by offering access to a pool of online resources,

facilitating operations efficiencies. This technology

alleviates users from the responsibility of maintaining

infrastructure by allowing them to buy processing

power, storage, and networking capabilities in the

cloud when they are needed storage (Sina Ahmadi,

2024). As per National Institute of Standards and

Technology (NIST), cloud computing is defined as

“A model for enabling ubiquitous, convenient, on-

demand network access to a shared pool of

configurable computing resources. It becomes

possible to rapidly provision and make available

networks, servers, storage, applications and services

with minimal administration overhead. As

organizations turn increasingly to data-driven

decision-making and request real-time access to

services, cloud computing provides the environment

needed to encourage innovation and responsiveness.

Its capabilities fit various business scenarios — from

deploying mobile apps to doing extensive data

analytics.

1.1 Server Computing: Traditional

Cloud

Dedicated servers or virtual machines are used to host

apps and services in server computing, also known as

conventional computing or server-based computing.

For decades, this paradigm has been the norm for

many organizations, and it depends on real or virtual

servers to supply the resources required for data

management, processing, and storage (Sina Ahmadi,

2024).

1.2 Limitations of Traditional Cloud

Computing

Since every coin has two sides, cloud computing

technology has also its own limitations as listed

below:

Expensive: The requirement for a sizable initial

hardware investment and continuing operating

expenses can be very onerous.

Scalability issues: Increasing or decreasing involves

a lot of preparation and technical know-how and is

frequently not agile.

584

Sivaranjani, S., Ramya, K. and Anandhi, R.

Advancing Cloud Ecosystems: The Role of Serverless Computing and Blockchain in Modern Infrastructure.

DOI: 10.5220/0013869600004919

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 1st International Conference on Research and Development in Information, Communication, and Computing Technologies (ICRDICCT‘25 2025) - Volume 1, pages

584-590

ISBN: 978-989-758-777-1

Underutilization of Resources: Inefficiencies may

result from many servers not being used to their

maximum potential.

Maintenance Overhead: Needs constant supervision

and upkeep, which might use up important IT

resources.

2 SERVERLESS COMPUTING:

REVOLUTIONIZING CLOUD

APPLICATIONS

Developers can create and execute applications using

serverless computing without having to worry about

maintaining servers. It mainly charges and scales

automatically according to consumption. Event-

driven architectures in serverless computing are

bringing a major transformation to cloud applications

environment (Y. Li et al., 2023). In a conventional

cloud context, developers are often plagued by the

challenges associated with provisioning and

maintaining servers, which can slow them down and

hike up operational costs. In serverless computing,

however, this infrastructure management is

abstracted, allowing developers to write functions

that are automatically triggered by triggers such as

user events, system events, or scheduled jobs (M.

Ghobaei-Arani and M. Ghorbian, 2023).

2.1 The Evolution of Serverless

Computing

Serverless computing is one of the most creative

innovations in cloud computing. Serverless

computing is a cloud computing execution model in

which the cloud provider dynamically allocates

machine resources.

Figure 1: Evolution of Serverless Computing.

The provider takes care of server provisioning,

scaling, and deployment while developers write and

run the code (Mugunthan, S. R, 2021). This technique

abstracted server maintenance, lets us focus on

application functionality and logic is shown in Figure

2.2 Event-Driven Workflow in

Serverless Computing

Event-driven workflows of serverless computing

provide a new methodology to build modern apps that

respond rapidly and in real time to events without

worrying about maintaining underlying infrastructure

(Mugunthan et al., 2021). In a serverless architecture,

developers create functions that respond to various

triggers, such as user activities, system events or

scheduled events, enabling seamless scaling and cost

effectiveness.

Cloud providers offer their own solutions (e.g.,

AWS Lambda, Azure Functions), where applications

can scale automatically based on the current demand.

The paradigm also leads to challenges like vendor

lock-in, difficulty in monitoring and debugging, and

latency because of cold starts (Chen et al., 2021), thus

careful design is important. Using serverless event

driven processes has many benefits: scalability and

cost effectiveness to name a few. Because they only

pay for the precise amount of resources used during

execution, companies can optimize resource

utilization and lower costs associated with idle

processing power by only executing code when an

event happens.

Figure 2: Performance of Serverless Computing Vs.

Traditional Cloud Models.

Figure 2 demonstrates how serverless computing

works with quick scalability and low latency and

allows it to operate well at low workloads when

compared to traditional cloud models. However,

because they provide consistent resource allocation

and circumvent serverless functions' cold start

latency, traditional cloud models perform better than

serverless at large workloads (Smys et al., 2021).

Advancing Cloud Ecosystems: The Role of Serverless Computing and Blockchain in Modern Infrastructure

585

2.3 Benefits of Serverless Computing

There are many benefits of serverless computing

greatly improving the creation of contemporary

applications.

2.3.1 Cost Efficiency

Because serverless computing uses a pay-as-you-go

pricing model, businesses only must pay for the

computer resources they really utilize during runtime.

This results in significant cost reductions by

removing expenses related to idle resources (Srikanth

et al., 2021).

2.3.2 Scalability

In response to demand, serverless architecture

automatically scale resources up or down.

Applications may manage different workloads thanks

to their elastic scalability without the need for human

intervention. Functions can automatically duplicate

during periods of high traffic, guaranteeing steady

performance in contrast, resources can be lowered

appropriately during periods of low demand (Suma

etb al., 2021).

2.3.3 Reduced Operational Overhead

Cloud service providers cover a large portion of the

operational load associated with serverless

computing, including server management and

maintenance (Kumar et al., 2021). This enables

development teams to devote more resources to

innovation and application development as opposed

to operational duties.

Figure 3 illustrates the cost efficiency of hosting

the serverless computing and traditional cloud models

based on execution time. The summary of the above

graph is:

1. Serverless Computing:

• Cost scales linearly with execution

time.

• Lower cost for short-duration tasks

due to the pay-as-you-go model.

2. Traditional Cloud:

• It has a higher baseline cost, even

for short tasks.

• More cost-effective for long-

running workloads due to fixed

pricing.

Hence, Serverless computing is ideal for short,

bursty workloads, while traditional cloud suits long-

running, predictable workloads (Jain et al., 2020).

Figure 3: Cost Efficiency in Serverless Computing Vs.

Traditional Cloud Models.

2.4 Real-World Applications for

Serverless Computing

Numerous real-world applications that make use of

serverless computing's scalability, affordability, and

simplicity of deployment have emerged because of its

considerable popularity across a range of industries

(Mugunthan, S. R, 2020).

• Companies like Netflix process enormous

volumes of real-time data using serverless

architecture, which helps them effectively

manage customer demands and improve

streaming quality.

• To handle erratic traffic during sales events, e-

commerce systems like Zalando use serverless

functions, which allow them to flexibly scale

resources to match client demand without

overprovisioning.

• To minimize operational costs and ensure

responsiveness, service providers like Slack

also use serverless solutions for background

operations like data integration and

notifications (Chen et al., 2024).

• In the financial sector, fintech firms use

serverless computing to quickly process

transactions as well as handle user

authentication that requires high levels of

security without compromising on efficiency.

ICRDICCT‘25 2025 - INTERNATIONAL CONFERENCE ON RESEARCH AND DEVELOPMENT IN INFORMATION,

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3 IMPROVING CLOUD

SECURITY USING

BLOCKCHAIN

While cloud computing provides scalability,

flexibility, and cost-efficiency, it also brings forth

security challenges concerning data privacy, access

control, and cyber threats. These risks need to be

addressed by organizations to have secure cloud

environments (V et al., 2020). The following are

some major issues with cloud security:

1. Data Loss & Breach: As cloud providers

store plenty of private data, they are often a

victim of cyberattacks. Unauthorised access

due to weak authentication or poor storage

config can lead to data leaks

2. Inadequate Identity and Access

Management (IAM): If authentication

processes are not up to the mark,

unauthorized users might access the cloud

resources. Security issues may arise from

poorly designed IAM roles with excessive

permissions (Sha et al., 2020).

3. Insecure Interfaces and APIs: Cloud

services use Application Programming

Interfaces, or APIs, to communicate.

Attackers can use vulnerabilities in badly

configured APIs to gain unauthorized access

Yadav et al., 2024).

4. Cloud Settings Misconfiguration:

Misconfigured databases, storage buckets,

and access controls can expose sensitive

information. Such security breaches are

common as most default settings are never

changed.

5. Insufficient Cloud Visibility and

Monitoring: Organizations have trouble

monitoring cloud resources due to dynamic

scaling and multi-cloud environments. In a

scenario where there is insufficient

visibility, unauthorized activities are nearly

impossible to detect.

6. Compliance and Legal Issues: The data

protection laws vary in different countries

(GDPR, HIPAA, CCPA). Companies using

cloud services must protect data in

accordance with these regulations.

7. Insider Threats (Negligent Employees):

Employees/insider with privileged access

can help in violating cloud resources

Sensitive information can be exposed due to

accidental data deletion or phishing attacks.

3.1 Understanding Blockchain

Technology

Blockchain technology is one of the most

revolutionary inventions that can change lives in all

sectors. Blockchain is a shared, decentralized ledger

system that allows secure and open transactions to be

conducted without intermediaries. Blockchain is a

distributed digital ledger that securely records

transactions on many computers (Gupta et al., 2024).

Unlike traditional centralized systems, this system

operates on a distributed network, which makes it

impervious to fraud and tampering. Transactions are

collected in blocks, which are linked together to

create a chain, hence the term “blockchain”. It has

some features such as immutability, which means

transaction which is once recorded can never be

altered or deleted, which ensures security and trust.

With respect to validation of transactions, it replaces

the need for intermediaries using consensus

mechanisms (Gupta et al., 2024).

Structure of Blockchain

Figure 4: Structure of Blockchain.

Figure 4 shows the architecture of Blockchain. It

consists of blocks, each containing a set of

transactions, a timestamp, and a cryptographic hash

linking it to the previous block, forming an immutable

chain (Patel et al., 2023). The key components of

blockchain include nodes (participants in the

network), consensus mechanisms (such as Proof of

Work or Proof of Stake), smart contracts, and

cryptographic security. Blockchain operates without

a central authority by relying on consensus

Advancing Cloud Ecosystems: The Role of Serverless Computing and Blockchain in Modern Infrastructure

587

mechanisms for transaction validation. Common

mechanisms include,

• Proof of Work (PoW) - Miners solve

cryptographic puzzles to validate transactions

(e.g., Bitcoin).

• Proof of Stake (PoS) - Validators are chosen

based on the number of coins they hold (e.g.,

Ethereum 2.0).

3.2 How Blockchain Improves Cloud

Security

Blockchain technology offers numerous benefits

across various industries by enhancing security,

transparency, efficiency, and decentralization

(Rajasekar, P et al., 2024). One of its key advantages

is improved security, as blockchain uses

cryptographic encryption and decentralization to

prevent fraud, hacking, and data manipulation.

Additionally, it ensures immutability, meaning once a

transaction is recorded, it cannot be altered or deleted,

making data tamper-proof (Liu et al., 2020).

Figure 5: Security Benefits of Blockchain in Cloud

Computing.

Figure 5 shows the security advantages of

blockchain in cloud computing are highlighted in

the pie graph. Decentralization (25%) lessens

dependency on central authority, while data

integrity (30%) guarantees tamper-proof records.

Transparency (15%) increases confidence by

permitting verifiable records, while encryption

(20%) safeguards sensitive data. 10% access control

prevents unwanted access. Integrity,

decentralization, encryption, transparency, and

access control are some of the ways that blockchain

improves cloud security overall.

3.3 Performance Comparison

Cloud security has been improved by incorporating

Blockchain through its immutability feature. There

are evident advantages in implementing blockchain in

cloud model rather than cloud model without

blockchain. Table 1 gives the performance

comparison of systems with blockchain vs. without

blockchain across key factors like security,

transparency, decentralization, speed, cost,

scalability, trust and automation.

Figure 6: Comparison of Benefits of Blockchain Vs

Traditional Cloud.

Table 1: Cloud Model With Vs. Without Blockchain.

Factor

Cloud with Blockchain

Cloud without Blockchain

Security

High security due to cryptographic encryption

and immutability.

Vulnerable to hacking, fraud, and

data tampering.

Transparency

Transactions are recorded on a public or

permissioned ledger, ensuring transparency.

Limited transparency, data can be

hidden or manipulated.

Decentralization

Operates on a distributed network with no

central authority.

Centralized control, prone to single

points of failure.

Speed

It can be slower due to consensus mechanisms

and network validation.

Faster in centralized systems with

direct processing.

Cost

Reduces intermediary costs but may have

higher computational expenses.

Lower computational costs but

may require intermediaries.

Scalability

Limited scalability, especially for public

blockchains like Bitcoin and Ethereum.

Easily scalable in traditional

centralized systems.

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588

Trust &

Reliability

Trustless system where transactions are

verified by the network.

Requires trust in a central authority

or third parties.

Automation

Supports smart contracts for self-executing

transactions.

Manual intervention often required

for contract execution.

Figure 6 shows the security benefits of

blockchain-based cloud and traditional cloud across

five key factors: data integrity, decentralization,

encryption, transparency, and access control (Liu et

al., 2020).

The blockchain-based cloud (blue bars)

consistently scores higher in all aspects, particularly

in decentralization and transparency, where the

traditional cloud (orange bars) lags. Encryption and

access control also show significant improvements

in blockchain-based solutions (Habib et al., 2025).

Overall, the chart highlights blockchain’s superior

security benefits over traditional cloud computing,

making it a more secure and reliable choice for data

protection and management.

4 CONCLUSIONS

This article hence brings out the improvement of

cloud infrastructure using serverless computing and

blockchain technology (Modi, R et al., 2024). Table

2 shows the comparison of serverless computing and

cloud models with Blockchain based upon the

metrics like security architecture, data integrity,

authentication, attack resistance, compliance,

performance and cost implications.

Table 2: Serverless Computing Vs. Cloud With Blockchain.

Factor

Serverless Computing

Cloud with Blockchain

Security

Architecture

Relies on cloud providers to manage

security, including infrastructure, runtime,

and application security.

Uses decentralized security mechanisms,

cryptographic hashing, and consensus

protocols to ensure data integrity and

immutability.

Data Integrity and

Confidentiality

Data is processed and stored in a

centralized cloud environment, making it

vulnerable to data breaches and insider

threats.

Provides tamper-proof records with

cryptographic security, making it more

resilient to unauthorized modifications.

Authentication

and Access

Control

Implements identity and access

management (IAM) controls, role-based

access, and API gateways for

authentication.

Uses cryptographic keys and decentralized

identity management, reducing

dependency on traditional centralized

authentication mechanisms.

Attack Resistance

Prone to Distributed Denial-of-Service

(DDoS) attacks, dependency

vulnerabilities, and supply chain risks.

More resistant to DDoS and single-point

failures due to decentralization but may

face Sybil and 51% attacks in public

networks.

Compliance and

Privacy

Compliance depends on the cloud

provider’s adherence to regulations

(GDPR, HIPAA, etc.), with limited user

control.

Offers enhanced transparency and

auditability, but privacy can be challenging

in public blockchains.

Performance and

Scalability

Highly scalable with dynamic resource

allocation but may suffer from cold start

delays.

Scalability issues in public networks due to

consensus mechanisms, leading to slower

transaction processing.

Cost Implications

Pay-as-you-go model reduces

infrastructure costs but may lead to

unpredictable expenses.

Higher computational and storage costs,

especially in proof-of-work-based systems.

Therefore, serverless computing is ideal for

scalable cloud applications but requires robust

security management. Blockchain provides

enhanced data integrity and decentralization but

faces performance and privacy challenges (Raghu et

al., 2025).

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