Blockchain vs. database
Blockchain is a decentralized distributed
The data is stored in blocks where each block contains the details of the transactions. Each new block is chained to all the previous blocks through hashing. Blockchain is not only used to store data; it holds various
What is a database?
A database is a highly structured centralized ledger managed by a central party. It is based on a client-server architecture where the central authority has the right to change the structure or any part of the data. It can work with every data type and organize the data in a table to make querying efficient. Examples of a database include MySQL, Microsoft SQL Server, Oracle Database etc.
How do they differ?
Even though both databases and blockchains are used for storage, there are considerable differences between the two.
Blockchain | Database |
Blockchain is based on decentralized distributed ledger. | Database is based on central authority for managing the data. |
As the data is dependent on several decentralized nodes, blockchain faces major scalability issues. | As there is a central administrator, the authority to change the data is limited to a few people. It makes traditional databases to handle large volumes of transactions per second efficiently. |
Blockchain provides potential transparency of the data as all the records are available publicly. | Databases fail to provide transparency because of their limited access to the administrators. |
As the blockchain data is chained together by the cryptography, tampering of the records is difficult. | Databases offer customization. Choices such as setups, permission updates, and plugins can all be optimized to make it more customer-oriented. |
Blockchain offers low performance because of the time for transaction validation. | Databases offer high performance as indexing keeps the records organized and makes it easier to access. |
Once the data is recorded on the blockchain, it cannot be deleted or updated. | Databases offer a variety of operations such as create, delete, update, and read. |
Anyone with the high computational power can participate and write on the distributed ledger. | Only the authorized entities are allowed to participate. |
Which one should you choose?
Blockchain is used for:
Financial transactions
Identification and authentication of records
Reliability and security
Real-time exchange of data
Database is used for:
Confidential transactions
Conventional storage
Relational (highly linked) data
Data requiring frequent modification
Check your understanding.
What is blockchain?
A type of digital currency
A decentralized distributed ledger technology
A physical chain used for securing data
A type of encryption algorithm
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