- Databases and blockchain technology are both used to store and access data.
- They differ in their architecture, control, speed, and use cases.
We produce nearly 328.77 Million terabytes of data each day. An estimate claims that the last two years have generated 90% of the world’s data. The figure went up from just 2 zettabytes in 2010 to 120 zettabytes in 2023 and is estimated to reach 181 zettabytes by 2050. With such an enormous amount of data being produced, there also rises a need to store it and give easy access to users when they need it.
The history of databases goes back to times when data was stored in journals and libraries. This data was not navigational and required human efforts for sorting and producing the requested data. With the popularity of computers in the 1960s, computerized databases became common. Charles Bachman made the first database system based on the hierarchical and CODASYL model. Since then, this technology has rapidly evolved with innovations each year.
Although the credit for making the term and technology of Blockchain goes to Satoshi Nakamoto, the anonymous individual or group who founded Bitcoin, the work behind this technology was going on for a long time. The concepts of Merkle Tree, Vault System, Timestamping digital documents, the P2P network by Napster, and Proof-of-Work to limit e-mail spamming were all being researched and developed at the individual scale.
In 2008, with the launch of Bitcoin Blockchain technology, several platforms such as Ethereum, Polkadot, IBM blockchain, Cardano, and many others are marching with this technology into the future. Many people consider blockchain similar to databases and they are not wrong considering its infancy. However, a standard database and blockchain differ in several ways which will be discussed here.
Blockchain v/s Database
The difference will be best understood by comparing them to a common parameter.
Centralization
The basic difference which makes them stand apart is centralization. Databases are centralized where an authority, the administrator, has the right to modify, change, delete, or create data. Without them, the system will not function.
Blockchains are decentralized with no single party having control of the system. Even if some users opt out, the ledger will still function.
Technical View
Databases are built upon data structures and can support all modern types of data. This data can be queried using Structured Query Language (SQL) and is navigable. A database management system (DBMS) is used for managing the database.
In a blockchain, data is stored in blocks that are cryptographically linked to the previous block forming a chain-like structure. Each block contains a cryptographic hash of the previous block, transaction data, and the time stamp.
Architecture
Database run on a client-server architecture, where the two communicate through a secure connection. The client can add new or access any previous data through this server, a centralized processing unit. This architecture has proved immensely successful both for small-scale and large-scale use.
Blockchain is based on Distributed Ledger Technology (DLT) and many users communicate with each other and use a consensus mechanism ( PoW or PoS) to agree on the authenticity of the data.
Immutability
Databases have CRUD (create, write, update, and delete) at the primary level, hence this data is not immutable and can be changed by the wish of the client.
Blockchains offer immutability in the sense that any data once stored cannot be updated or deleted. It supports just the read-and-write features. This immutability prevents data compromise, corruption, or loss, which is all possible in databases either through a malicious administrator or hacks.
Talent
The database is a fairly old technology with many experts in the domain. Even small companies can afford to set up a database and hire a database engineer to run the setup.
Blockchain is, however, in its infancy with just a few experts on blockchain out there. Most educational institutions have database courses but a few provide blockchain-related subjects.
Final Thoughts
The database has been in the market and serving companies for years. It has high speed, scalability, and utility. However, if you are looking for innovation, transparency, and verification, you can depend on the blockchain. The use cases range from supply chain management to inventory management and voting.