Difference between Blockchain and Database

Blockchain Vs Database: Learn How is Blockchain different from a Database, Major Differences between a Relational Database and Blockchain.
Submitted by Vaishnavi Srivastava, on February 02, 2022

Blockchain is a distributed ledger technology that allows groups of peers to work together to form a single distributed network. With the help of consensus algorithms, peers can communicate and exchange information and data. In addition, the entire network is more reliable than other networks because it does not require a single privilege.

Now that you understand the concept of blockchain, you will learn about databases. Unlike blockchain, a database is a centralized ledger managed by a single administrator.

The database has its properties, including B. Literacy. Only people with appropriate access can perform write and read operations. The database can also contain many copies of the same data and their history. This is achieved with the help of a centralized institution that manages the server.

How is Blockchain different from a Database?

The main difference between the blockchain and the database is the degree of centralization. While all records in a database are centralized, each blockchain participant has a safe copy of all records and modifications, allowing each user to see the data's provenance. When there is an inconsistency, blockchain technology will rapidly discover and repair any incorrect information because each member has a copy of the records.

Participants are innately able to trust data when it can automatically detect and fix itself based on coded business logic (smart contracts) and consensus. Because the database is managed and updated by a database administrator, when two businesses collaborate, they rarely share a single database with a single set of records (DBA). Because the DBA is paid by one of the companies, he or she has a vested interest in the success of one but not necessarily the other.

They never know if they want to make changes that will benefit their business. On the more ominous side, if a competitor decides to pay the DBA, neither party can make the necessary changes to the database without their knowledge. Using blockchain technology in the data process eliminates a single point of failure (DBA in this case) and allows changes made by one participant to be quickly rolled back by another participant.

The immutable changelog also shows who tried to make changes after the data was automatically modified. Companies can trust not only the data shared between their partners but also the data shared by their competitors if the data process is secure.

Major Differences between a Relational Database and Blockchain

Control is decentralized:
Blockchains, in general, allow diverse parties to share information without the need for a single administrator. In the case of blockchains, the consensus process we outlined before plays a significant role in decision-making. Databases, on the other hand, have very different usability. In a database, a central administration is essential since there are times when you can't rely on the agreement. From time to time, it turns out that the basic intellect of one person is superior to the sum of the intellects of the other million.
History:
Only the current information is recorded in the central database. It does not search for information that has already been recorded. The situation is different on the blockchain. Not only can you save the current information, but you can also go back in time and search for information on previous transactions. You can use the blockchain to generate your story database. The database grows like an archive of its own ever-growing story.
Performance:
Blockchain is perfect as a transaction platform or recording system, but it is as slow as a database when it comes to digital transaction technology. There is no doubt that the performance and nature of blockchain technology will improve, but databases already offer similar services. They have been on the market for decades, improving performance by a factor of 10.