In this text, we will talk about the blockchain dataset, its use cases and how it compares to other types of datasets. You’ll explore blockchain data and get some more tips on how to work with it. Many of the data ideas I wrote about earlier will really help here. To begin with, I will describe a summary of what we will cover throughout this text.
Throughout this text, I will talk about blockchain as a dataset and compare it to traditional databases. Now I wonder, could you explain to me why this is an important thing to understand? Yes, it’s an excellent question. So now we have traditional datasets that we’re all comfortable with.
With blockchain, it’s a new way of looking at a dataset. It is unchangeable. So let’s look at the fundamental difference between traditional datasets and blockchain datasets. Yes, there are definitely certain limitations that blockchain has, but there are some amazing things it can do. So it’s great to know how we can compare it to the traditional database.
Immutability
Blockchains, like a traditional database, are a way to store data. You can think of them as a set of data with specific characteristics. To start, let’s look at the network. Unlike traditional databases that rely on a centralized authority, blockchains are supported by a distributed network.
Blockchains allow anyone to download a copy of the database for themselves. This gives them full access to the data and functions available to the database. One benefit of this is that no single entity can regulate the data that exists in the database. A downside to this is that there is no central authority to help dictate what information is accurate. The distributed network was designed as a way to reach consensus on the accuracy of the data without the need for that authority.
As we’ve seen in previous posts of mine, the consensus algorithms involved with this can be quite complicated and result in other problems such as network speeds. Next, there are different functions available to users on a Blockchain when compared to a traditional database. While in a traditional database, users can create, read, update or delete data, in a Blockchain, they can only read, append or validate data.
A big difference to note here is that Blockchains do not allow users to delete data. Instead of deleting or overwriting all data, Blockchains create a new record. For example, in a Bitcoin transaction, let’s say X has 10 Bitcoins in his wallet. Transactions leading to this balance are permanently stored on the Blockchain. If X gives me four Bitcoins, that transaction is also recorded on the blockchain. X’s new wallet balance will appear as six Bitcoins. The transactions leading to the original balance of 10 Bitcoins have not yet been cleared. They are recorded on the Blockchain along with any future transaction information. As you cannot delete Blockchain data, the database is considered immutable.
Immutable is the term used to describe any data that cannot be updated after being added to the database. The benefit of this is that the Blockchain keeps a permanent historical record of all the transactions that happened on the network. If there is any dispute over a Blockchain transaction, there is always evidence to go back and verify. The downside to this is the immense amount of memory space and resources required to store this dataset. Next, the way authorization is handled on a Blockchain is very different from a traditional database.
With a Blockchain, authorization is not controlled by any central authority. Each user on the network has equal access to data and functions available to each of the users. While both types of data are very secure, the access you can gain from a single authorization point is drastically different. Once you have the proper credentials, you can gain access to any type of database. Differences in a Blockchain The best you can do is get the credentials of a single user, and even then you can only access their personal data. With a traditional database, if you get authorization to the database, you just have access to everyone’s personal data in the system. For this reason, we consider data on a Blockchain to be more secure.
But this kind of security comes with some drawbacks. On the one hand, without having a central authority and control, it is difficult to resolve disputes that may arise. With a Blockchain, you cannot call a company to fix something you disagree with. security is fully handled by the software running the system. The systems that help maintain Blockchain security exist to facilitate the fact that a Blockchain is highly transparent.
As we mentioned earlier, anyone can access the same data and functionality provided to anyone else on a Blockchain. This is in contrast to a traditional database where that permission is controlled by the authority that owns it. We consider this open access to be an advantage for Blockchain solutions because it is exactly why it was created in the first place.
A potential downside to this is that you won’t have a careful permissions system like you would with a traditional database. To recap, we just compared the differences between the network, functions, mutability, security, and transparency of each of these database solutions. We try to avoid making judgments about which is better because that’s not really the point, neither of these solutions is better than the other. Overall, they are just better or worse in a given situation. There are also many other ways to compare these databases.
Things like ease of use, integration with existing technologies, and other important features can definitely come into play here. These are just some of the basics to get you started, so feel free to delve into these ideas if you’re interested in learning more. I hope this is a good starting point for you. Understanding these differences will help you decide when an application is best suited for Blockchain and when it is not.
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