Use Of The Blockchain Technology For Managing Your Business Data
The constant increase in the usage of data and the need for the latest systems are not only growing but is also offering new opportunities for further innovation. Data management is a continuous challenge. But the blockchain technology makes managing the data an effortless job. The blockchain technology is useful in revolutionizing the business, society, and almost everything in between. Blockchain, a distributed ledger technology, has the potential to deliver disruptive outcomes and reshape the digital business.
Using blockchain technology for databases seems like a logical step forward. It is definitely an emerging movement to lay the foundations for a decentralized architecture across industries. With the help of blockchain technology, a marketplace similar to Uber can store their data on the network that one can replicate and retain information.
Concepts Of Data Management In Relation To The Blockchain Technology
- Blockchain’s distributed nature can manage the reference data.
- It helps in the collaboration between two non-competing parties who like to maintain contractual data between them.
- Mainly this concept particularly applies well to financial companies who share data with regulatory agencies.
- This can lead to an accurate and automated blockchain reference data that reduces the costs and operational risks.
2. Data Warehousing
- Due to the transactional nature of blockchain technology, one cannot see that it stores the historical data, which is a requirement to build a Data Warehouse.
- The blockchain is not a replacement for databases, but it solves a completely different use case.
- There are some blockchain-based databases that allow users to actually run SQL statements. These type of databases will potentially become source systems for integration into a Data Warehouse.
3. Data Quality
- The blockchain technology inherently provides a validation to the blocks of data.
- To insert the block into the blockchain, the data needs to fit into a specific structure.
- The blockchain rejects the data that does not fit its rigid requirements.
- From various types of the blockchain, the validation provides a consistency for the data blocks.
- Blockchain data is as accurate as the app allows it to be. It has no inherent check on the data itself.
- The garbage-out and garbage-in condition still apply. So the app needs to have a good check and must make sure inaccurate data does not get into the block.
Blockchain Technology Vs. SQL & No SQL Database For Data Management
- If you look around at the IT world today, you will notice that data management solutions have not really changed in a fundamental way in decades.
- The SQL databases are the go-to database solution for years. While NoSQL databases offer somewhat more flexibility, but they still perform the same core functions of SQL-style databases.
- From an IT management and business-value perspective, conventional databases pose several problems like making data highly available and maintaining redundant.
- It is easy to lose data or expose it to attackers when it is stored in a centralized database.
- While by functioning as a decentralized database that automatically distributes data across nodes, a blockchain provides better data availability than a centralized database.
- The blockchain technology helps to combat fraud and ensures data integrity because no single party can make one-sided changes to data stored in a blockchain.
- The blockchain can scale automatically as the size of the network that hosts it grows. A business using a blockchain technology does not need to invest extensively in infrastructure in order to scale data hosting.
- On top of all of this, some blockchains, like Ethereum, provide access to a distributed network of computing resources as well as data storage.
- This means that you can run applications on the blockchain, potentially freeing businesses from dependency on centralized cloud hosts for computing resources.
- Businesses looking for a better, more scalable, less expensive way to store data that they are able to achieve with traditional databases, blockchains offer an obvious and immediately available solution.
- Replacing your SQL databases with a blockchain technology may not be exciting, but it is genuine and realistic. The real-world use case for blockchain can deliver real business value and can make the lives of IT admins easier.
Advantages Of Blockchain Technology In Managing Data
- Blockchains can manage relationships where participants share the same data source, such as financial relationships and transactions connected to each step.
- The blockchain technology is transparent. Each and every block validated into the blockchain by its multiple users is unchangeable without the permission of everyone in the block.
- A blockchain is like a shared ledger of digital records, every user sees the same data.
The amount of data that organizations and individuals are producing and storing is growing rapidly as developing technology makes the data ever more valuable and usable. The blockchain technology makes it possible for organizations to work with much larger amounts of data without any sort of computational and resource limits of traditional database systems. The blockchain is a next-generation technology for internal business operations. With the continuous increase in the importance of data, the blockchain offers an alluring path toward more efficient operations, more responsive service, and enhanced data security.