Nowadays, blockchain, cryptocurrencies, NFTs seem to have become the main focus of technology-related news.
Blockchain has affected many industries such as insurance, health, banking, government and many others.
Even though it is a big hit, blockchain is still a blurry notion. Is it considered a database? What is the difference between the two of them, since they both store data?
They are actually so similar and distinct at the same time.
First, we will start by defining each of the database and blockchain. A database is a collection of information, such as files and records, generally all kinds of data, organized so that it can be easily accessed. All added data are stored in tables. Therefore, it is crucial for any business to store their information in databases in order to improve their customer services or improve business processes.
Nevertheless, blockchain is a shared database that stores data in blocks and links them with cryptography.
Second, we will point out the divergences between the two of them:
- CENTRALIZATION
All databases are centralized ledgers controlled by an administrator.
However, blockchain is a peer to peer decentralized distributed ledger technology. Which means that blockchain data can be accessible through different consenting parties without any need for a record keeper.
Nonetheless, blockchain’s decentralization implies that no one person nor group of person controls the data, they collectively retain control.
- ARCHITECTURE
As shown by the definitions, both database and Blockchain differ by their architecture.
A database holds a network-client architecture.
Blockchain’s structure, on the contrary, is based on DLT.
Therefore, DLT records and shares data across multiple data stores (ledgers).
Also, they are stored differently; a database is stored in tables and blockchains in signed blocks.
- INTEGRITY
Considering the fact that databases are maintained by an administrator, data alteration is the main risk.
However, blockchain is immediately corrected and identified when modified. Therefore, it is not possible to alter with data without the others finding out.
Such blockchain feature ensures integrity and trust to its users.
Notwithstanding, a DBA is not necessarily a bad factor. It simply holds a higher risk of data compromising.
- TRANSPARENCY
All transactions in the blockchain technology are tracked and promptly visible to the public. People can’t hide their tracks with blockchain transaction.
However, the identity is not revealed. blockchain technology is still encrypted and therefore, the identity of the users can still be anonymous if they wish.
As for the databases, they are not transparent. The administrator decides which data can be available for the public. Accordingly, the transparency level is very low.
- COST
The more you pay, the more you ensure security.
As a consequence, blockchain’s advantages makes it a rather expensive choice, and databases are more affordable.
It is mostly due to the fact that installing and maintaining databases is easier and cheaper, since it is older and more common.
Nonetheless, blockchain is still a new technology, which means that not many people can install and maintain it.
Eventually, depending on your company’s requirements and its data’s sensibility, you will have to choose an option that ensures a proper security.
The metaverse universe inspires the world to learn about blockchain and to distinguish it from databases.
In conclusion, a blockchain is a type of shared database, but not every database is a blockchain.
