If you have ever heard the term cryptocurrency then you will be familiar with blockchain. A technology that is considered one of the fastest and most adapted techniques ever.
Blockchain is often compared to a database and it has been a topic of debate recently. Both are almost identical techniques. However, both have marginal differences and different points of view.
Do you also get confused in differentiating between blockchain and database despite being aware of blockchain technology?
In this article, we will cover the comparison of blockchain vs database to help you understand where both technologies stand.
Before continuing to read this article, you may want to clarify your concepts about- Why learn Blockchain technology?
What is Blockchain?
Blockchain is a distributed ledger technology (DLT) that stores data in the form of blocks. It is a distributed ledger that allows peers to store pieces of information bundled in blocks of equal size that are distributed to a group of computers that are not owned by a single entity.
In other words, the blockchain is a decentralized network that stores information about all the events and transactions that happen on it, and the data stored on the network is verified by all other network users because it employs a peer-to-peer (P2P) architecture.
Benefits of Blockchain
Quick Processes: In the financial industry, blockchain can allow for faster business settlements. Verification, settlement, and withdrawal are not time-consuming processes with Blockchain Technology.
Intact and secure transactions: Because the blockchain only allows data entry, when a new block is added to the ledger chain, it cannot be removed or modified.
Credible: The blockchain authenticates and verifies the identity of each interested party. It eliminates duplicate records, reduces rates, and speeds up transactions.
Security: Blockchain employs state-of-the-art cryptography to ensure that information within the blockchain is kept secure. It employs distributed ledger technology, in which each party maintains a copy of the original chain, ensuring that the system remains operational even if a large number of other nodes fail.
Decentralized: Because there is no centralized authority overseeing everything. Some rules regulate how each node exchanges blockchain data.
What is Database?
A database is a type of central ledger that is managed by an administrator who has access to read, write, update and delete data from the ledger. A database is essentially a data structure that allows businesses to store and manipulate data.
In general, a database is a data structure used to store information accessed by the ones given rights. It is an organized collection or storage of data that can store fresh data or access existing data. A database management system can be used to organize the data stored in the database. The database administrator can modify the data stored in the database. The client-server network architecture is used to implement the database.
Benefits of Database
Controls database redundancy: This is because it stores all of the data in a single database file and that recorded data is stored in the database.
Data sharing: In DBMS, authorized users of an organization can share data with multiple users.
Easily Maintenance: Because of the centralized nature of the database system, it can be easily maintained. It saves time on development and maintenance.
Backup: It includes backup and recovery subsystems that generate an automatic backup of data in the event of hardware or software failures and restore the data if necessary.
Multiple user interfaces: It provides various types of user interfaces, such as graphical user interfaces and application program interfaces.
Blockchain Vs Database
|Blockchain is decentralized, there is no admin or in-charge.||Database is centralized and it is maintained by an admin/in-charge.|
|It is a fully robust technology.||It is not a completely robust technology.|
|Blockchain has a history of records and ownership of digital records.||Whereas, the database has no history of records and ownership of records.|
|Someone with the right proof of work can write on the blockchain.||Only organizations that are entitled to read or write can do so.|
|Blockchain is not an iterative system. We can’t go back to repeat a task on any record.||The database is an iterative system. We can go back to repeat a task on a specific record.|
The distinctions between a Blockchain and a Database are stark, and their unique characteristics allow them to serve diverse purposes.
In effect, what counts is not which technology wins the Blockchain vs Database battle, but how relevant they are to your objectives. Before deciding whether to use a Blockchain or a traditional database, every organization must first define what it wants.