Discussion in 'Building Your Business' started by Mobiloitte_Tech, Jun 1, 2019.

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  1. Mobiloitte_Tech

    Mobiloitte_Tech Member

    Aug 6, 2018
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    We heard many things about the concept of blockchain features and functionality, and when it comes to blockchain and database many consider blockchain similar to a database but it is much more than that.

    Yes, I agree, a blockchain is a form of a database, a distributed database. I know many of you might get curious when I say ‘distributed’ & ‘database’ together.

    Let’s keep this curiosity alive and get a quick glance of the difference and similarity between a database and a blockchain.

    Blockchain Technology has been accused as nothing more than a complicated and expensive database. While both technologies offer data storage and data management, blockchain has one unique feature which a database can never replicate.

    Blockchain technology is a distributed ledger which is used between parties that don’t trust each other with data.

    Let's understand it more clearly by the case of Bitcoin blockchain, blocks are added to the chain in every 10 minutes by the miners with cryptographic proofs and timestamps. But this process makes blockchains very slow.

    The database administrator provides rights to read or write, unlike blockchain where anyone can do so by doing the significant amount of work in the correct way.

    What's the difference?

    But like blockchain, a modern database can store history and different versions of data but to an extent with the help of a centralized trusted entity. And because the database is centralized in nature, their maintenance is easy and their output is high. But this also brings the drawback of trusting a centralized entity which might get when corrupted and that can compromise the entire data, even change the ownership of digital records.

    With Blockchain Technology there is no need to keep all the previous versions of the records because we can trust the centralized authority by default and it will consider as an act of fair, which in the real world, is far from reality.

    The blockchain technology only requires enough trust between the organization to decide who will participate in the network, then the blockchain takes care of keeping participants honest once they join the network.