Blockchain Vs Databases
As we get close to our Minimum Viable Product (MVP) release and with some great new partnerships forming for Bridge Protocol; one thing we are asked constantly from “traditional” businesses are, “why not just use a database?”
If we take a step back in this bear market and analyze the correction, we can all agree that most Initial Coin Offerings (ICOs) only had a blockchain element in their token for the token sale. Besides that, the use-cases we see everyday could be served and operate on blockchains like NEO and could accept GAS to run their platform and not their own native token.
But, let’s take a step-back and highlight some differences between the two.
Traditional databases
These use a client-server network; this allows a user (client) permissions to modify, write and change what is stored on a centralized server. Control is designated by the party that verifies their credentials for access. This relies on a single-party to handle administration and when authority is compromised, data can be altered and used for the wrong purposes.
Blockchain Databases
Blockchain databases consist of several decentralized nodes, or in NEO’s case, a few Council controlled nodes with a decentralized infrastructure. Each node participates in consensus and administration; they all must verify new additions to the blockchain and are capable of writing changes. But, in order for changes to be made then all nodes must reach consensus. This is crucial to guaranteeing the security of the network and adds additional layers to protect against tampering. There is different consensus models like in Bitcoin where you have miners solving complex puzzles, while Ethereum seeks to use proof of stake.
There are key properties that society can benefit from a blockchain system, permission-less systems that rely on computation from machines rather than an appointed Board of Directors (BOD) or officer. Public verifiability of transactions is enabled by transparency of the blockchain. This can be beneficial when building trust profiles of users based on amount of transactions between users.
A blockchain allows for two core functions: validation of a transaction and writing a new transaction; these changes are operations that modify the state of data housed in the blockchain. While the past is engraved in the ledger, a new entry can modify the state of past entries. A good example, if I hold 100 NEO in my wallet and send 2 NEO to pay for some cool t-shirts then my previously stored wallet with 100 NEO now has a balance of 98 NEO permanently stored on the chain. But don’t forget, the past is permanent and if anyone cares to view, they can go back and see my wallet with the 100 NEO in it at that time; as long as the blockchain is still in operation.
Where does this all fit in with Bridge?
At Bridge, we are fans of decentralizing as much as possible. But, we believe that there has to be some layer of trust in all of the things we do. Americans go to the dealership and buy Ford trucks time-and-time again because you trust in the quality and integrity of the brand.
Bridge will become a trusted clearinghouse.
We will be asking you to trust us to issue your Bridge ID and secure your metadata; we saw this as the most fair compromise in the market today. We will verify your identity and then classify you as cleared in our system, while NEVER holding anything personally identifiable. The blockchain allows you (user) to use your ID as you please with your wallet, while protecting your sensitive info from bad actors. This ID management system is like nothing currently on the market.
