Blockchain is a popular technology buzzword. Over the past few years, Blockchain has witnessed tremendous growth and still seems to have no stopping. As per the Deloitte Global Blockchain study, around 50% of global organizations consider blockchain as a strategic priority. As such, it is clear that Blockchain is consistently acing towards growth in its governance and enterprise adoption. Although blockchain has gained appreciable acceptance, its underlying concept is still a thing of bewilderment for many people.
A lot of people around the world consider Blockchain an improvised version of the database. The prevailing similarities between the two, put people into doubt “is blockchain just a database?”
Well, yes, Blockchain is a type of database and does more than just storing and reading data. To figure out the differences between blockchain and traditional databases and provide entrepreneurs a better understanding of the subject this article will cover the definitions, similarities, and distinctions between the two.
Blockchain & Traditional Database
What is Traditional Database?
Databases are no rocket science; they are simply the data structures that define storage format for effective management of data. A traditional database assists with data storage and accessibility.
Considering technicalities, traditional databases employ client-server network architecture. Here, users (also referred to as clients) can request access to data on a centralized server. The control of the server on a traditional database is handled by a single authority. Moreover, for establishing a communication line between users and database open database connectivity is implemented.
The data on a traditional database is subject to modification as well as deletion. The reason being if the security of the authority being responsible is compromised, the data can be altered and even deleted.
What is Blockchain?
Blockchain is a relatively new technology. It works on distributed ledger network architecture. The decentralized database in Blockchain acts as a repository for the storage of chunks of bundled information known as blocks. These blocks are referred to as chains because each block contains the hashed data of the previous block added to the ledger. A hash is an encryption code assigned to each transaction and is responsible for lending a unique identity to each block.
• Blockchain consists of several decentralized nodes.
• Each node is capable of entering new data into the database.
• For addition to blockchain, the majority of nodes must reach consensus.
• This consensus mechanism adds to the security of the network, thereby, making it tamper-proof.
Management of Traditional & Blockchain Database
Managing Traditional Database
Traditional databases support four operations i.e. create, read, update, and delete. Collectively these are referred to as CRUD commands. In traditional databases, database management is under centralized control. The data administrator can potentially alter data at will. However, the data administrator holds accountability for enhancing performance and reducing database redundancy.
With the increasing database, daily auditing and corresponding maintenance also increase. Therefore, for effective management, the administrator can divide his/her task between different users.
Moreover, databases are susceptible to corruption or server crash. Without robust server management and support your critical data can be exposed to the risk of loss. As such, databases require backup storage with effective server management.
Managing Blockchain
In Blockchain technology data is immutable. It can neither be tampered nor modified in the entire system. Each chain in the network has a copy of the complete blockchain. Unlike, traditional databases, Blockchain performs only two tasks, i.e. read and write. In case if a new dataset is added to the network, a new block is generated.
So even if someone attempts to alter data, a timestamp is generated, keeping track of changes in data. Hence, changing records in the blockchain is nearly impossible. This adds to the transparency of Blockchain architecture. And it won’t be wrong to say that blockchain as a database is appreciably reliable.
Even if few nodes are non-operational, the rest of the nodes will work smoothly 24*7 without interruption.Furthermore, with the non-involvement of any authoritarian permission for the transaction, Blockchain serves to be one of the most convenient databases.
Highlighting Features of Traditional Database
They are highly customizable:
A key property of a traditional database that distinguishes it from blockchain is central administration. Since the management of traditional databases is in hands of the primary administrator, it has the privilege of being optimized.
• The set-up requirements and permissions can all be altered depending on your requirements.
• The relational architecture of the database ensures its relocation to any place.
• Developers are also free to add plugins and improvise front-end as per customer preferences.
They are Stable:
Traditional databases have the capability to process a large volume of transactions per second. This is possible due to centralized transaction permission and client-server network architecture that reduces dependency on nodes. In order to enhance network speed, data administrators resort to shrinking and sharding techniques. Moreover, in case of technical faults resulting in data loss, backups serve as an alternative option.
They Deliver Speed:
The traditional database designs have received a lot of reformations over the years. Today, databases lead in speedy delivery and are capable of performing high-end analytical operations. Big data analytics is one of the best examples highlighting the potential of traditional databases.
Use Traditional Database For:
• Confidential Records
• Relational Data
• Conventional Storage Systems
• Data that would be frequently modified
Highlighting Features of Blockchain Technology
It is immune to Faults:
Blockchain technology offers impressive tolerance against faults. Despite having hundreds and thousands of nodes it can function smoothly delivering higher uptime. Even if a few nodes are down, the overall performance of the network would remain unchanged.
It is highly secure:
In terms of security, Blockchain is unrivaled. It can be considered as one of the most secure infrastructural investments. It is immune to counterfeiting and is protected by a strong algorithm. Each node on the blockchain network stores a copy of the blockchain for validating new blocks. Even a single change in a block requires updating its entire copy which needs a large amount of computing power. Therefore, Blockchain is highly secure.
It Offers Enhanced Transparency:
In Blockchain, all transactions are publicly visible. You can view them by simply downloading a copy of the ledger. Unlike other financial institutions, where transfers are kept hidden, Blockchain offers you a higher degree of transparency. Every user can get updates on how blockchain has been updated over time.
Use Blockchain For:
• Financial Transfers
• Real-Time Data Exchange
• Identifying and Authenticating Records
• Decentral Applications (dApps)
Which one should you select for your StartUp: Blockchain or traditional Database?
As seen above, blockchain and traditional databases both have their own set of advantages and disadvantages. There is no exact answer to which one is best between the two. Traditional databases and Blockchain both are suitable for different kinds of applications.
• High fault immunity and the secure environment of the blockchain network makes it a preferred choice for special operations like financial transactions, developing decentralized applications, data verification, or voting.
• Traditional databases bring you a higher degree of customization. Therefore, they are suitable for executing centralized processes enabling faster operations. Moreover, for processes that require consistent data flow, traditional databases are deemed appropriate.
Decentralized
- No central administrator or data storage
- Moderate-to-infinite scalability once infrastructure is in place
- Users are in control of all transactions and information
- Eliminates intermediaries, potential to reduce transaction fees
Centralized
- Easy maintenance woth a single point of failure
- Quick growth,Low scalability
- Administrator oversees all transactions within theledger
- May contain overhead costs for exchange of assets
Hence, you can use any as per your business requirements. Nevertheless, a lot of organizations are working on improving the features of a traditional database. Considering this, there is not going to be much distinction between the two. Whether you should choose a traditional database or blockchain will completely depend on your enterprise needs. No matter what you choose, be sure to stick to effective server management and support services to render technical support and effective management of your database systems.
