Is Blockchain Better Than Traditional Database?
Hello Friends 👋
If you are one of those many professionals/entrepreneurs/blockchain enthusiasts who are still figuring out the differences between blockchain and traditional databases, then you landed at the right place. In this article, we will about the most discussed rivalry in the business world – ‘Blockchain Vs Database’ and where precisely both these technologies stand.
Blockchain is a distributed ledger technology that enables multiple parties to work together to create a decentralized network.
These parties can share data among themselves with the help of a consensus algorithm and without any centralized authority.
The information shared is stored in a data structure called blocks. Any party adding anything onto the blockchain requires verification from all other parties involved in the network.
Blockchain stores information permanently in uniformly sized blocks arranged in a linear chain. Each block in the chain contains its own ‘hash’ along with the hashed information from the previous block. Hash codes are generated by a mathematical function that turns digital information into a string of numbers and letters. This provides cryptographic security to all the information in the blockchain.
Advantages of Blockchain
Saves time: Trade or transactions can be settled swiftly as it does not require verification, settlement, and clearance processes.
Unchangeable transactions: Blockchain network is designed only for inserting data. It means whenever a new block is added to the chain of ledgers, it cannot be modified or removed.
Reliability: Blockchain authenticates the identities of all parties within the network. As a result, there is no scope for corruption or duplication, which promises transparency in transactions.
Security: Blockchain consists of several decentralized nodes that participate in the administration. These nodes verify new additions to the blockchain and are capable of entering new data. For any addition to be made, the majority of nodes must reach a consensus. This consensus mechanism guarantees the security of the network, as a single party cannot corrupt it.
Decentralized: Decentralized control eliminates the risk of data corruption within the network, thereby building a secure and trustworthy structure.
A database is a centralized ledger run by an administrator. The administrator is in full control of assigning rights to read, write, update and delete an operation. On one hand, the centralized nature of databases enables easy maintenance and high output capacity. On the other hand, this exact possibility becomes a liability as it is highly susceptible to corruption. This can compromise the entire data and even change the ownership of digital records.
Traditional databases use a client-server network architecture. Administrators have the right to modify its structure or change any part of the data.
Advantages of Database
Controls data redundancy: In DBMS, all data is integrated into a single database file. The data is recorded in only one place in the database and it is not duplicated.
Data sharing system: In the traditional database management system, the authorized users can assign or share data with multiple users.
Easy maintenance: The centralized nature of the database system makes it easy to maintain.
Less time-consuming: Since databases are easily maintained, it requires less time for development and maintenance.
Backup option: One of the prime features of a database system is the provision to auto-backup data from hardware or software failures. The data can also be recovered and restored.
Multi-user interface: Users can have different types of user interfaces like graphical user interfaces, application program interfaces, etc.
Blockchain Vs Databases
The differences between blockchain and databases make them suitable for different use cases. It’s not about which technology has the upper hand.
What matters is how relevant they are to your goals. Enterprises should understand what they want from the implementation of any technology and the same rule applies to blockchain or traditional databases.
If you want to share anything or have any suggestions/questions, please leave them in the comments!
That’s it for today :-)
Hope each of you has a great start to your day. I’ll talk to everyone tomorrow.
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