Learn the Difference between Blockchain and Database
The trends in the IT industry are reaching heights with leaving people astonished as the days pass. The trend of cryptocurrencies has been popular for a while with managing the transactions on daily basis. To manage these transactions, the blockchain technology has arrived to provide ease to the people to work through various networks on the same platform without any hassle. You can learn about blockchain, database and their differences in this article to enhance your learning. So, let’s get started!
What is blockchain?
A new invention in the market has emerged which is capturing everyone’s attention and people are interested to learn about it. Blockchain allows you to transfer the data on the internet without getting it copied. It gets distributed but no one is able to copy the information or data. The technology of blockchain works as a backbone in the world of internet. The actual reason for its establishment is due to the bitcoin and cryptocurrency which is in trend nowadays in the IT industry. It makes a potential use of the latest technology with creating opportunities for the people to earn through the advanced systems. Bitcoin is known as the gold which is available digitally and the value is near to billions of US dollars.
Blockchain works as a ledger to keep the maintenance of the records done virtually. It is used digitally with keeping the financial transactions and recording the value of anything online. It is a shared ledger which can be distributed among various computers. The ledger gets updated with the data entered on a daily basis. It is not just limited to a single place but the record is shared publicly with complete verification. No one is able to hack this system so you do not have to worry about it getting corrupted. Anyone is able to access the data on the internet with thousands of hosts.
Storage of Information
The blockchain technology is robust with storing the information through known networks. It is not handled or control by a single network. There is no risk of failure with the blockchain technology while sharing of data. It creates a mechanism to keep a track of accountability which falls on everyone using the internet. The transactions are not missed neither there are any errors involved in human or the machine. The exchange is not allowed except when the parties give consent. It weighs the validity of the transactions with maintaining the register connected to various networks. The validation process is safe to use and distributed among all without any obstacle.
The best part about blockchain technology is that it refreshes every 10 minutes with the automatic check option. The digital value gets evaluated by itself and every transaction is checked with the self-auditing. There is complete transparency through the process which cannot get corrupted at any point. Anyone is able to see the data and none of them are able to corrupt it even by applying all the computing power. If for instance, someone tries to override the system to capture bitcoin then the value of bitcoin will be destroyed for them too.
Blockchain technology can be known as nodes of the network where the client gets to validate the transaction after getting the copy of blockchain. It downloads automatically when the client joins a network of the blockchain. Each node in the network works as an administrator and participates in the network automatically. The ones who are into the network get to win the bitcoins on chance. The computational puzzles allow nodes to win the Bitcoin through competition with each other.
The blockchain is known as a decentralized system where it works as a whole. The stock market becomes more viable on the blockchain transactions as well as the transactions verification is away from the traditional commerce approach. To record the transactions of bitcoin, the big network of systems use the blockchain technology to manage the databases. It works on the user to user approach with having a collaboration on a massive scale.
In today’s market, online transactions are common and that is where bitcoin plays its role. The wallet application helps people to purchase things through bitcoin and keep it safe with the cryptocurrencies. The processes of identification and verification involve online transactions with the help wallet application which will change the identity management online in the near future. The data will be owned by the people with maintaining decentralization.
You do not have to worry about the internet security with the bitcoin technology due to the encryptions used in it. It keeps the risks away from interrupting the data and there are no security problems. You do not have to depend upon the username and password protection to have safety from the networks. The identity online along with the assets can be protected by the blockchain technology.
Private keys are allotted to the users to use blockchain. The users are known by the addresses to keep the record of the transactions. The private key works like a password which should be known by anyone else. The owner is able to access bitcoin and their assets easily through the private key. The data storage on blockchain stays safe and no one is able to corrupt it. It is always better to keep the private key secure by printing it and storing it in a safe place.
Blockchain Technology Approach
There is a new approach towards functioning with the blockchain technology. The users are able to interact with each other through the blockchain with the bitcoin transactions on daily basis. The security is exceptional and you are able to keep a good track of the finances. It works as a great source to clear the settlements globally for the people. Many businesses have been taking interest in the blockchain technology and it will play a pivotal role in their success. The functions of blockchain will improve the lives of businesses and the people surely over the next upcoming years.
The application of blockchain consists of new components which will use to process the information digitally. It will consist the following:
- Smart contacts
- Economy sharing
- Funding by crowd
- Good governance
- Auditing option
- Storage of file
- Market prediction
- The IoT (Internet of Things)
- Identity management
What is a Database?
The database is made up of the tables which show a structure of data from the SQL server. There are rows and columns in the table which are called attributes. The entire collection is based on the storage of information in each column. The information such as name, numbers, amount and dates are mentioned in the columns. There are various controls associated with it which work as a triggering point for the database. It validates the data with the guarantee of customizing it. The view of the customized table performs with the subset of the calculation and you are able to function it easily. You are able to look through the database by the keyword or the name easily with the quick response. The database is able to accept new inputs but with a restriction. The person who creates the database has the entire access to it and no one else is able to make modifications without permission.
When the database is shared, there are limits to only view or edit options on a certain area assigned by the administrator. We all know that data is the object which comes under consideration such as your profile consisting age, height, name, weight, picture, image, file, document and more. The entire system which keeps all this data at one place with security is called a database in simple words. The collection of data in a storage and making changes to it easily can also be known as database management system. Just like you create a directory with keeping the separate columns for name and phone numbers, similarly, the companies keep the record of transactions, billing, client information, employee information and more.
Another popular example of the database would be the popular social media network which keeps the data secured and you are able to view the mentioned prior things on the top of your feed. The advertisements which you like to see appear on the side and if you do not wish to see it, then you do have the option to tell the system not to show it to you again.
You are able to access the database through the management system which controls the access. It is an old concept of the 60s which was introduced by Charles Bachmen. The data management evolved as the years passed but the base still remains the same. There have been additions to the functions and they increase as the technology advances. There are different types of database such as navigational, relational, SQL and Object-oriented.
Types of Databases
Let’s look at each of the types quickly:
The navigational type also known as hierarchical stores the data which works as the nodes and branches of a tree. You can refer to the Windows XP registry system to relate to this type. This type is rarely used in today’s era due to the advancement in technology.
This is connected with the user to user server. It helps in the complex structures with creating a database on the user’s end. It represents the network model and a great example of it is the internet. When you use the web to search for something and the next time, it suggests the similar products or services you were looking earlier.
The relational type is popular in the market due to the relationships it builds between the users. Oracle can be looked at the best example of this type of database.
This type refers to the data in the form of objects. The attributes such as age, height, name and more are saved with this of data easily.
SQL stands for Structured Query Language, as the database runs on the SQL service, you need to understand the proper work for it. It is used for updating, searching, inserting and deleting the data in the records. There are no limits for SQL server and it keeps on getting optimized along with the proper maintenance.
Differences between Blockchain technology and Databases
The traditional database and blockchain deals with the networking of the technology and how they are managed. The database works globally on the web with having the relationship of web-server networking system whereas, blockchain is a secure whole network which can never get corrupted. The database enables the person to have the permission to make changes to the account with having the centralized system. The master copy of the data is with the owner and they have to allow someone else to make changes. The complete control is with the admin only and permission is required for any updates or changes.
This is not the case with blockchain technology. Everyone on the network is able to maintain the entries and update it. All the clients on the nodes work together with working on same conclusions within the secured network.
Learn about the main components which bring in the change for both systems.
- Decentralization vs. Centralization
There is no central administrator with blockchain and people who do not know or trust each are able to share the information with each other. There is consensus involved while processing transactions within the network so that creating the records and sharing can be done continuously.
Whereas, the database remains centralized with little access to the people who share the information. Anyone is able to hack or corrupt the system and they have to rely on the admin to make any changes. First, the admin will give permission then the changes can be made. For the centralized systems, it is necessary that the administrators are able to trust the nodes and do not leak the secret information.
- History Saving
With the databases, the information gets updated on the system and when the changes are made, you are not able to identify or remember. There is no history made for the database but just the moment of snap will appear before any next change.
On the other side, blockchain updates the information automatically every 10 minutes and also keeps the record of all the changes. It creates histories with referring back to it anytime whoever on the network wants it. The archives increase with creating a list of changes made on the network. To keep the record of smallest thing, blockchain works the best for the people who share networks.
- Performance Evaluation
The performance of blockchain is ideal for the users but it can be slow at times. The transactions digitally through the PayPal or Visa are fast when compared with databases. There will be improvements in the system in terms of the speed for blockchain technology. The blockchain technology takes a huge power for processing with the service independence. When the work on the blockchain compares to the database, the performance will surely decrease.
Whereas, the databases have been in trend for a long time with the overall continuous improvement with bringing it to speedy results in today’s era.
- Security, Safety, and Confidentiality
Anyone is able to write into the blockchain technology and read through as well. The changes can be made easily by the users without any interruptions. Whereas, for the database, without the permission of the admin, no one is able to write or read the data or transactions. Only selective participants are able to view the database and make changes if the admin permits.
- Hiding Information
When you talk about hiding information then it will be hard to do it on the blockchain than the database. It would require a huge cryptography with creating a burden on the network to hide information. The only will be to hide the data completely from everyone in the blockchain technology. Whereas, private databases can be made easily through the centralized systems with hiding information from certain people.
- Extraction of Information
There can be a misconception that blockchain works the best but if trust and efficient system is not the priority then there is nothing so new about the blockchain technology. There are some downsides of blockchain technology mentioned above so if you are hyped with this new technology, it is always better to do the homework before you shift the system management to new technological discoveries. Blockchain indeed enables the database to share with the people across the boundaries without any central admin. The computer system is able to save the data and keep the details of little changes made on the blockchain. Each node on the network makes sure that it is affiliated with the security and safety to be shared. No one is able to access the system to extract the bitcoin information otherwise their system can fail or would have the burden on their computer system the most. The cost of acquiring over or hacking the blockchain technology can be threatening to the hacker’s system with the computing burden as well.
- Capturing Information
The transactions processed in blockchain work as a single node which ensures that it will never break down and the client is always able to catch the transactions without missing any. The instant extraction of information can be done by the blockchain technology whereas, if you work with the centralized database, it can be difficult to extract the information which once changed or deleted. Only the administrator is able to see the changes and make modifications to the system. Everyone is able to see the changes with the blockchain technology so there is nothing hidden and automatically updates every few minutes to ensure the robustness of the system.
Need of Blockchain Technology for Bitcoin
The value of bitcoin rose within decades with many ups and downs. The rise of bitcoin has been spectacular and it will keep on increasing according to the trend of IT market. The total value of bitcoin in today’s market is more than $160 billion. The virtual currency has hit the real world in a dynamic way which leaves behind the remarkable stores like McDonalds and Walmart. In near future, bitcoin will work as the exchange of value with the era of digital currency. The more people accept it quickly, the better it will be. It will surely not be accepted as a real money but it has a lot of value virtually. The value factor can help compel many people to get attracted towards the bitcoin.
The aggregated level of cryptocurrencies is unlimited with having no barriers to anyone’s entry in the network. The transaction is easily made by the blockchain technology with creating more opportunities to earn through bitcoin. There is a lot of scopes for the cryptocurrencies to be used in the future with the quick adoption around the world. Governments may not play a vital role in its adoption but would want to keep the backup for the currencies on their end. On the other side, the financial services like banks have started to proceed through the cryptocurrencies and making it public slowly and gradually.
The record of the database through the blockchain can work as a strong base for the bitcoin to rise and lead the IT market in the near future. The transactions are public with the verification of the mass consensus along with the participation of the users within different networks. There is no alteration or change in the system once the information entered into the system. So the processing is secure and cannot be changed by anyone else who is on the same network of processing bitcoin through the blockchain technology.
One of the popular application bitcoin blockchains is in trend nowadays with significant characteristics which provide benefits to the industries all over the world. It is a permissionless network where the identity of the user is never revealed and privacy is maintained. If there are large transactions then it tends to slow down for a while but that issue will be fixed in the near future as the trend increases. It is a promising network for the people to join and explore new areas of IT industry.