· by Mr. Admin
·
Updated on 2 August 2021
·
10 mins read
CoinSutra » Blockchain » Blockchain
vs Database: Understanding The Difference
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Did you know that a blockchain and
database are two different things? I ask that because many consider blockchain
similar to a database but it is much more than that.
Of course, a blockchain is a form of
a database, a distributed database. I know some of you might get curious when I
say ‘distributed’ & ‘database’ together.
Let’s keep this curiosity alive
for I am going to highlight today the difference and similarity between a
database and a blockchain.
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What Is A Blockchain?
A blockchain is a database or a
ledger that is distributed.
It is a DLT or distributed ledger
technology that the world had not seen before it was introduced to us by Satoshi Nakamoto‘s
creation of Bitcoin only in 2009.
The underlying technology
behind Bitcoin is ‘the
blockchain’.
On CoinSutra we
have discussed blockchain in detail in the past: The
Ultimate Guide To Understanding What A “Blockchain” Is & How It Works.
But for the uninitiated, I will give
a brief introduction again.
A blockchain is a
distributed ledger that can be used between parties that don’t trust each other
with data.
It is so because adding
something to the blockchain requires works to be done.
For example, in the case of Bitcoin blockchain, blocks are added to the
chain in every 10 minutes by the miners with cryptographic proofs and
timestamps. But let’s not forget that this process makes blockchains very slow.
These cryptographic proofs and
timestamps along with proof of work ensure that no one can edit
that data without putting a significant amount of work. Moreover, adding
transactions with timestamp creates an immutable history which can be verified
by anyone.
Through a blockchain, the provenance
of digital records becomes easy and transparent.
One can see when a digital record was
created (origin), ownership of records with timestamps, and its present status,
like we have in the Bitcoin blockchain.
On the Bitcoin blockchain, you can
actually see the origin of a particular BTC, and how many times it was
transacted between different addresses, and which address actually owns that
BTC.
This type of distributed ledger or database can be very helpful
between parties that don’t trust each other and yet want to transact with one
another in a fair and non-centralized way.
Lastly, in the blockchain
architecture, anyone can write digital records to the blockchain by putting a
significant amount of work called proof of work, so there is no centralized
agency for writing on a blockchain.
What Is A Database?
Databases are a kind of central
ledger where you trust the administrator to manage it well.
Of course, the database administrator
gives provides rights to read or write, unlike blockchain where anyone can do
so by doing the significant amount work in a correct way.
But like blockchain, modern databases
can store history and different versions of data but to an extent with the help
of a centralized trusted entity.
And because they are centralized in
nature, their maintenance is easy and their output is high. But this also
brings in the drawback of trusting a centralized entity which when corrupted can
compromise the entire data and can even change the ownership of digital
records.
Also, there is no need to keep all
the previous versions of the ledger because we all trust the centralized
authority by default and they ought to act fair, which in the real world, is
far from reality.
In such a system it is easy to pirate
the digital records and hence cannot solve problems like double
spending.
Conclusion: Blockchain
vs Database
|
Blockchain |
Database |
|
No one
is the admin or in-charge |
Databases
have admins & centralized control |
|
Anyone
can access (public) blockchain |
Only
entities with rights can access database |
|
Anyone
with right proof of work can write on the blockchain |
Only
entities entitled to read or write can do so |
|
Blockchains
are slow |
Databases
are fast |
|
History
of records & ownership of digital records |
No
history of records & ownership of digital records |
I don’t want to draw home the message
that centralized traditional databases are useless or bad. Instead, I want to
show that both types of ledgers can be used for different purposes.
For example, wherever we need
provenance and immutability, we can use ‘the blockchain’. When we need high
performance and confidentiality, we can use traditional databases.