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Blockchain technology has gained prominent attention in recent times due to the high security and encryption functionalities. Statistics estimate that the global blockchain market would reach total valuation of around $20 billion by 2024. However, many people confuse blockchain as another form of database, thereby raising doubts about the potential applications of blockchain and databases.
In this video, you will learn about the differences between blockchain and traditional databases in terms of various factors. Our expert outlines the nature of blockchain as a decentralized distributed ledger technology in comparison to databases which have a centralized structure. The peer nodes develop a distributed, decentralized network in blockchain, and they communicate through consensus algorithms.
The validation of transaction through consensus algorithms ensures limited dependence on a centralized authority to improve trust with blockchain technology. The data on the blockchain are validated and trustworthy alongside storing information about transactions and other important information for successful blockchain operations.
However, databases have centralized nature, thereby implying benefits as well as drawbacks. The management of database in a centralized approach provides ease of data access and storage. However, data is vulnerable to corruption alongside possibilities for hackers taking control of database modification and central authority.
Our expert also dives deeply into differences between blockchain and databases with focus on advantage of blockchains evolving into federated or hybrid models, accommodating the requirements of private organizations. On the other hand, databases rely on client/server architecture suitable for small as well as large-scale environments. As compared to blockchain technology, databases don’t depend on consensus algorithms albeit relying on centralized servers.
In terms of operations, databases support creation, read, and update and delete tasks. Therefore, users can erase or replace existing information with new values. On the other hand, blockchain provides support for read and write operations only. Since blockchain is also append-only, it is impossible to erase of replace data. Therefore, blockchain ensures data integrity at all costs.
In terms of cost, databases are easy to setup along with support for scalability. On the other hand, blockchain talent is very costly that can increase cost of implementing and maintaining blockchain projects. In addition to the reflection on use cases of blockchain and databases, our expert also outlines suitability of both technologies for different types of projects.
If you want to learn more about the differences between Blockchain and Database, read out the article:
Blockchain vs Database: Understanding the Differences between the Two
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How Blockchain Technology Is Related To Database, Blockchain vs Database | Difference between Blockchain and Database | 101 Blockchains.
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