In the ever-changing landscape of finance, a remarkable phenomenon has taken hold: the rapid growth of decentralized finance, or DeFi. This ...
Growing exponentially over the last few years, Blockchain technology has become one of the greatest disruptions of this era. The rate of adoption of this trailblazing technology brings forward some of the amazing numbers. According to Statista, spending on blockchain solutions will continue to grow in the coming years, reaching almost 19 billion U.S. dollars by 2024.
Distributed ledgers existed long before Blockchain app development company came into the game. Bitcoin, the most popular and most famous Blockchain, gained much public precedence soon after it was invented. And the reason behind this digital currency’s popularity was the digital ledger that was the backbone of the same.
Now when we have an overview of what Blockchain technology already is, let’s move forward to know how it exactly differs from the traditional databases.
What are Traditional Databases?
Efficient management of data is ensured through proper data structures. Traditional databases are made up of data structures for storing and managing the data. The traditional databases are based on the client-server architecture. Clients who are end-users of the service request data from a database through a server. The following image represents the working of the traditional database:
Databases are an integral component of all organizations across the globe and are important because they allow the users to utilize data by their enterprise's requirements.
In simpler terms, databases are simple tables consisting of rows and columns. Based on the hierarchical style, databases were earlier invented for the collection of data. But as the technology advanced, data became more complex, and hence, database models shifted to relational models.
What is Blockchain?
So, what Blockchain exactly is? Blockchain application development is a system of recording information in a way that the information becomes nearly indestructible. Blockchain is a digital ledger technology that is distributed across the entire network of nodes on a single blockchain.
Here’s an innovative presentation of how Blockchain works to help you understand:
Each time a new transaction occurs, its information is added to the ledger. The database that is managed by several stakeholders is known as Distributed Ledger Technology or DLT. Hence, Blockchain is a DLT in which transactions are recorded on a hash, which is a cryptographic signature.
Challenges with Traditional Databases
Traditional databases are in the market for a long period. In the debate of Blockchain vs traditional databases, the latter win due to their customizable feature. The traditional databases are administrated centrally and hence permissions & privileges can be optimized. Apart from their customizable nature, they are stable and promotes speedy delivery.
Although the traditional databases are favorable in some terms, due to the increasing complexity of the data, traditional databases are facing challenges that are making it less imperative than Blockchain. Here is a list of a few challenges that traditional databases encounter:
1. Data Security
As mentioned earlier, databases are an integral component of every organization. Although organizations utilize the database for information storage that doesn't imply that the databases are safe. Even a single pitfall in data security can hamper enterprise operations.
The traditional databases are simply less secure in comparison to the Blockchain databases due to many obvious reasons.
Contingencies occur all the time, and to stay safe, you need to move a step forward. When an employer shifts from one organization to another, you need to take care of the confidential data. Resetting the security and hiring new stakeholders is a very difficult task.
With Blockchain development services, you need not to worry about these contingencies.
Enterprises demand good performance scores when it comes to handling critical information and databases. The amount of data we are collecting on a day-to-day basis is expanding at an exponential rate.
A database showcasing good performance should recognize the changing operations and adjust the data automatically without the need of a babysitter.
Reasons to opt for Blockchain over Traditional Database
By now, you already have read enough reasons to switch to Blockchain technology.
Here we have curated a list to help you understand and present a clear picture of why you should opt for Blockchain development instead of traditional databases:
1. System preservation
In terms of fault resistance and system preservation, Blockchain wins the race. Made up of hundreds of nodes, and an indestructible ledger it is nearly impossible to alter the data in Blockchain technology. The fault tolerance of Blockchain is very high in comparison to traditional database architecture.
Blockchain uptime is not reliant on a single system but several nodes. Just in case, a few nodes stop responding the overall efficacy of the system remains unaffected, making Blockchain databases more resilient than traditional databases.
Blockchain is the other name for transparency. The data on a Blockchain-based ledger is stored on nodes, and these nodes are visible to all the stakeholders in the ledger. Unlike the traditional financial institutions where data is hidden, Blockchain provides a transparent system of information.
3. Reduction of unnecessary costs
Leveraging Blockchain to secure your mobile apps is one of the best investments you can make for your enterprise. Blockchain technology provides a secure network of data which also helps to reduce unnecessary costs incurred due to third parties involved in the systems.
When Blockchain databases are deployed in the organizations, mundane manual tasks such as aggregation and amendments of databases can be automated and the costs associated with them can also be eliminated.
The debate of choosing one suitable database for your enterprise is never-ending. We can easily present you much more facts around why you should opt for Blockchain as your next database. But the final choice lies in your hand, and making a decision here is not tough.
If you are looking for a reliable Blockchain app development company, Debut Infotech is the right place for you. Hire our app developers and develop your Blockchain-based solution now.