What do we mean by Blockchain Database?
A blockchain database is based on the foundation of Blockchain. Blockchain is performed by peer-to-peer decentralized transactions. Therefore, the blockchain database forms an immutable ledger of transactions. It is a distributed ledger.
For understanding this, let us take an identical data file. This data file is stored on a cluster of computers around the globe all at the same time. This is known as a distributed ledger. The data is not stored on a single database of one server.
Working procedure of Blockchain database
The entire network of nodes that keeps the data creates the “server” of sorts. The file inside this ledger is given a cryptographic signature. This helps the “participant” only to view the contained data.
Data is kept as blocks. When a new transaction or block is recorded, it gets added to the chain. So, the blockchain, therefore, contains every transaction recorded from the starting of the ledger.
A blockchain database is completely decentralized. There is no central server that keeps all the information. The database is managed and administered by a set of users. These users act as active participants. Before it can be recorded to the database, every participant needs to validate a transaction. So, it is secure.
Why use a Blockchain Database in the first place?
A blockchain database has decisive advantages over a relational database. Blockchains provide a robust and fault-tolerant way to store data. It is very unlikely for the relational database to provide such levels of robustness.
Businesses must maintain confidentiality. If their data is public, it could be a conclusive advantage for competitors. This could be a stake for the business to operate in the long run. A business can include only a cryptographic hash of the record for a transaction. So, the record of a particular transaction is hashed to the value. This gives a satisfactory level of data confidentiality.
The blockchain database provides a high level of robustness. It is very hard for a disaster or hacker to stop the network from performing transactions. This advantage is hard to achieve with other methods.
Blockchain Database Applications
BigchainDB is providing a database with blockchain characteristics. The specialties are high throughput, low latency, immutable data storage, and powerful query functionality.
In 2018, Walmart’s Canadian division launched its blockchain supply chain. These tracked the shipping transactions of its 70 trucking company vendors.
In 2020, the US Air Force is testing a blockchain database for sharing documents in the Department of Defense.
In 2017, Estonia, a Baltic state used the Blockchain database for protecting its public-sector data.
In 2018, the Food and Drug Administration tested it for protecting health-care data.
In 2019, the oil and gas firm Dietsman used a blockchain pilot with Modex to perform its blockchain projects.
In 2019, Depository Trust and Clearing Corp. launched a blockchain database for handling its 50,000 accounts records in Wall Street investment assets.
So, we realize that the blockchain database isn’t a pie in the sky. It is already being implemented in real-world projects. It provides trusted transactions. Governments can’t regulate and manipulate these databases. Fewer regulations generate an efficient business environment. It is, therefore, very likely that within the next few years, we will see some top global companies to implement this technology.
Author : Farhan Sadeed
The author studied from CSE at Military Institute Of Science and technology
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