Is Blockchain same as Database

As more and more firms incorporate the blockchain technology into their corporations and traditional database losing their significance? A blockchain is actually a database it is a digital ledger that stores information in data structure called blocks. A database likewise stores information in data structure called tables. However, blockchain is a database but database is not blockchain. There is also a difference in purpose between the two of them.

Decentralized Aspects

A Database is appropriate for organisations and companies where every user trusts the other user and does not intend to keep any duplicate record of the same data. In Centralised database, anybody with sufficient access to that system can destroy or corrupt the data. This makes user dependent on the administrators.

However when it comes to the blockchain technology, transaction that takes place are verified by consensus from other nodes that are presents on the same blockchain. Blockchain allows different parties that do not trust each other to share information without requiring a central administrator. Transaction are processed by a network of users acting as a consensus mechanism so that everyone is creating the same shared system of record simultaneously.

Structural Difference

A database often uses client- server network architecture. There are database administrators who may make changes to any part of the data and its structure at any given point in time, administrators are the central authority that maintains controls of the database and they’re the ones who decide who else gets access and permission. The update version of the database is the one that is accessible.

Blockchain itself is a database in the form of digital ledger. It combines the internet and cryptography to cater information registration and distribution, thus, eliminating the need for trusted party such as bank in case of monetary transaction. Records are arranged in blocks of data and each block is connected to the previous one by using hashing function. It forms a chain of blocks that cannot be changed.

Performance

While blockchain can be used systems of record and are ideal as transaction platforms, the nature of blockchain technology requires that some speed be sacrificed. The way distributed networks are employed in blockchain technology means they do not share and compound processing power, they each independently service the network.

Database, on other hand, have been around for decades, and have seen their performance increase in lock-step with a formula that has come to define innovation in the digital era.

Blockchain Vs Database — Which one is Right for you

The right choice out of the two would depend on your business use case and preference. If you want to do something within your network with your data and with computers that you control then database are more suitable. On the other hand, if you need a setup where the data is highly available but you are not the only one paying for it, would not need to modify past data, need it to be immutable and publicly accessible then blockchain is a better choice. It will also provide more transparency and reliability.