Comparison of Blockchain and Database

Comparison of Blockchain and Database


Blockchain is cutting-edge innovation for storing digital information and binary code. Computers and processors have long been capable of storing, managing, and processing data, long before the advent of blockchain technology. Consequently, Blockchain may appear to be merely another alternative technology that allows users to host information. Blockchains and databases serve various purposes, and both have advantages and disadvantages. To help readers decide which technology is best for their needs, this article compares and contrasts two common data storage mechanisms: databases and blockchains.

Briefly, what is the Blockchain?

Block chain is a combination of the words block and chain. Transaction data is stored in blocks, and blocks are the smallest unit that a node may transport at once. Blockchains are distributed digital ledgers that can be used to record transactions across a network of computers without the intervention of a central authority. It also means that information stored on a blockchain can be accessed by anybody, at any time, regardless of where they happen to be located in the world. Blockchains can function without the requirement for any trusted third-party administrators. Coins like Bitcoin, Ethereum, Litecoin, etc. are distributed via blockchains. They can function as a host for decentralized applications and provide infrastructure support for the DeFi network.

What is the Function of Blockchain?

Blockchain is just a piece of software. Because it is powered by DLT, the network is always accessible and requires no human intervention from above. Data, such as digital transactions, can be recorded on each block and stored on a network of distributed servers using blockchain technology. That’s why blockchains are decentralized and can’t be hosted on a single server. There are always several versions of the blockchain stored on various computers.

The process of leveraging computational power to decipher blockchain blocks is known as mining. After solving the block’s cryptographic puzzle, miners can confirm its transactions and add it to the blockchain. Anyone with access to the network may view, read, and trace all transactions that have ever taken place on the blockchain. Cryptocurrencies are issued by blockchains; these are fungible tokens or coins that can be spent, lent, or borrowed for a variety of monetary purposes.

Smart contracts are used in blockchains; these are pre-programmed computer protocols that, when certain criteria are met, continue to carry out a series of operations. Anyone with a computer and access to the internet can join a Blockchain network; no central authority or financial institution is required to do so. With blockchain technology, national and international transactions no longer require the use of physical currency or copious paperwork.

Off-the-Record Blockchains

Private Blockchains are permissionless, centralized, and governed systems. They restrict access to the network so that not everyone can take part in its functions. In a private blockchain, access is restricted to only those who have been verified and approved. Users in a private blockchain network have access to only the features and functionality appropriate to their positions. In a private blockchain, not every user has access to all the data and features. Private blockchains are typically not open-source initiatives either.

Distributed ledgers that are accessible to the public

A public blockchain is a permissionless, distributed, and unregulated network. Any individual from any country in the globe can join a public blockchain and contribute to its growth and development. Transactions on public blockchains can be validated using either a Proof-of-work or Proof-of-Stake process. When it comes to public blockchains, any developer in the world may get their hands on the code and implement it anyway they see fit because it is open-sourced. A public blockchain is a trusted network that use smart contracts to prevent fraud.

Distributed Ledger Systems (DLTs) with Hybrid Blockchains

Hybrid Blockchains combine public and private networks. In this type of blockchain, a private company is responsible for managing some aspects of the network. However, the majority of it is open to the public and requires authentication to access. The monetary information and data stored on a hybrid blockchain are immune to tampering by private entities, which is a major advantage of such a system.

Consensus Blockchains

Some businesses use what is known as a “Consortium Blockchain,” which is a shared distributed ledger technology (DLT) network. The hub is built to facilitate a wide range of digital activities, including supply chain data transfers, international monetary transactions, communications, etc. A different name for it is “Federated blockchain.” Since the Consortium blockchain’s power is shared across numerous commercial participants, it is able to protect sensitive data.

Exactly what does it mean when someone says “database?”

Almost everyone has some sort of online presence these days. Users can sign up for their own profiles on any one of the innumerable sites available online, post files, and engage in a wide variety of other customization options. In addition, none of this data is stored in any manner on a computer or mobile device. This is due to the fact that these applications and websites use a proprietary database. In the same way that spreadsheets and word processors may be used to organize and track information, databases can be used to collect, organize, and retrieve information for use by a business or an individual. However, databases, in contrast to blockchains, are dependent on a single server.

Companies typically have copies of their databases stored offsite in case of disaster. Furthermore, a database collects all the data in one place and makes it accessible to users according to their degree of clearance.

In what ways does a database function?

In the same way that a blockchain is a type of computer program that enables users to carry out various operations, a database is an early version of a blockchain. Users can not only share data with one another, but also save data on a central server with the help of this database. Using SQL, or Structured Query Language, you can retrieve any and all data stored in a database. The database employs a hierarchical structure, with access to distinct sections and administrative privileges restricted to those with proper credentials. Information in a database is often organized into tables with columns for storing characteristics, which are collections of information.

Varieties of Databanks

A Detailed, Organizable, and Accessible Database

Like branches of a tree, users of hierarchical databases must first navigate to a specific level before being granted access to additional branches. The database nodes are structured with hierarchical parent-child relationships. Because of its structure, a hierarchical database can only be used for certain purposes and can only be managed by approved individuals with proper credentials.

Keeping Track of Connections in a Network Database

Like other hierarchical databases, network databases have a tree-like structure and have restrictions at each level. There need not be a one-to-one relationship between a parent and child node in a network database. Databases that function like the Internet in terms of data flow are called network databases.

ODBMS, or Object-Oriented Database Management System

Databases in the object-oriented paradigm store and display information in the form of objects. Many other things may be found to correspond with these ones. Object-oriented languages are used to generate the databases that make up an object-oriented system.

Simple Data File System

Single-file, or flat-file, databases store data in a single text file. In addition, the text file’s contents are laid out in lines, with each line representing a separate record. Due to its simplicity, a flat-data file can only have a single tablet relation.

Database with Multiple Files

Multi-tablet data streams in rows and columns are present in multi-file databases and relational databases. To link these rows and columns together, we employ key fields. Among the many possible features of a multi-file database are upgrades, creations, edits, deletions, and readings. SQL allows for the development of an adaptable and international user interface for relational databases.

Non-Relational Data-Base System

With a NoSQL, or non-relational, database, users are able to easily store and handle massive amounts of information. Non-relational databases are flexible enough to work with both unstructured and semi-structured information. Functions like key-value storage, graph-based analytics, and document storage may all be made possible with their help.

Private blockchains and databases may appear to be functionally equivalent because of their shared underlying technology. However, based on their features and technical make-up, each one has its own own qualities. Both the private blockchain and the database are centralized resources that can only be accessed by the appropriate parties. However, databases allow the central authority to erase the information, while private blockchains only offer the highest authority read/write access.

Data security via cryptography is offered by many different technologies, but a private blockchain stands out as a truly innovative solution. Comparatively, databases lack the security of private blockchains. A database lacks the accuracy, completeness, and consistency of a private blockchain. Even while databases are typically designed with a client-server architecture, private Blockchains operate on a peer-to-peer basis. Unlike databases, which are inherently centralized, private Blockchains can be implemented with varying degrees of decentralization.

Distinctions between Blockchain and Database

Knowing that we have a firm grasp on what Blockchains and databases are and how their basic structures work, we can begin to examine the ways in which they differ. Blockchains and databases may appear initially to perform comparable tasks. There are several obvious ways in which they differ, though, as discussed below.


Databases and blockchains are similar in that they both serve as a means to record transactions and keep track of ownership of assets. Whereas databases tend to be centralized, Blockchains operate without any central authority. Because of their decentralized nature, blockchains offer superior security and privacy over traditional databases. It is widely agreed that the next stage in programming will be the development of decentralized apps that can continue to function with minimal human intervention. What this also implies is that all participants in a blockchain are on equal footing as far as access and authority are concerned.

On the other hand, due to the centralized nature of databases, only the administrators are granted access to and control over the information contained within them. A database’s administrators can also provide other users, including node validators and editors, restricted privileges. To prevent the database from falling into the hands of hackers or threat actors, however, administrator privileges are strictly controlled.


A database’s infrastructure is built on the client-server approach. This could refer to the user interface or any other section of the database that the user has been granted access to. Servers are present to act as a centralized processing unit, and the database design is well-suited to both small and large-scale activities. Users of the database can share information and data without deleting anything from the server. Additionally, databases can safeguard communications via encrypted methods.

In contrast, blockchains are fundamentally based on the decentralized peer-to-peer concept. This allows for encrypted protocols to be used when one user is transacting with another. Consensus techniques, like as Proof of Work (PoW), are essential to blockchains for verifying the distributed nodes in the network. No central authority is required to oversee the operation of a blockchain-like database. Smart contracts perform all operations on blockchains.

Information Technology: The Processing of Data

Blockchain and database data processing algorithms are totally dissimilar. By adhering to the CRUD principles, data on a database can be easily saved and accessed (Create, Read, Update, and Delete). This also means that a database administrator has complete control over what data is included in the database and what data is removed. Blockchains, meanwhile, utilize DLT to record information. This means that after a transaction has been validated, a copy of it is sent to each and every blockchain server. Since the only actions that may be performed on a blockchain are reading and writing, the information contained therein is immutable.


Because databases are typically organized as hierarchical networks, access to their underlying code and data is restricted to a select group of administrators. Only the top-level administrator has access to making changes to the database. Database users have restricted access to only the features that have been authorized by an administrator. Safeguards for the network are strictly enforced by the database administrators.

However, as blockchains are distributed ledgers, everyone has access to the data stored on the network. A blockchain that is both open-source and distributed has all of its code and transaction history available to anybody on the network. Even though the administrator of a private blockchain can’t erase or change the information stored on it, users still may not have access to all of the information.


Databases are useful for centralizing data pertaining to a specific IT infrastructure or software application. On the other hand, database administrators have complete freedom to alter the structure and content whenever they see fit. Similarly, a database administrator does not need users’ permission to make such modifications.

By contrast, a blockchain’s fundamental structure and digital ledger are immutable and cannot be altered by any of its users. The fact that data exists in thousands of copies on servers all over the world makes it extremely difficult for a single developer to make any significant changes to that data without access to an enormous amount of computational resources. However, rather than reworking the framework itself, blockchain developers can improve performance by including second-layer projects.

Since blockchains are still an emerging technology, databases can be implemented at a lower cost. Databases have been around for decades, and there is no shortage of software developers capable of developing, maintaining, and improving them. A database has lower upfront expenses, but greater ongoing overhead due to upkeep and operation. To ensure their safety from outside attacks, databases need regular human supervision and active monitoring.

Blockchains, on the other hand, are encrypted networks that are impenetrable to attacks from outside sources. On the other hand, there is a shortage of blockchain coders, thus the salary is greater than average. On the other hand, database engineers can be found more easily and at lower costs. Businesses who aim to develop a decentralized app must invest more in the hiring of qualified employees.


A database can perform more quickly and efficiently than blockchain. Although faster speeds typically produce better results, this is one area where that is not always the case. Blockchains are more time-consuming to validate transactions than traditional ledgers since encryption is used to secure the data already on the network. The data on a blockchain is significantly more secure than database records, but the process is slower. Signature verification is used by blockchains to ensure the validity of each new transaction with a one-of-a-kind code.

Decrypting the code and adding the new block to the network after verification is possible because blockchains use several consensus mechanisms. Each node in a blockchain network must verify the legitimacy of the transactions before they can be processed. However, developers are continually attempting to improve the efficiency of blockchains by doing things like increasing the blocksize or changing the consensus models.


Applications, software, and websites that rely on a constant stream of data can benefit from database support. Confidential information can be safely stored in a database. The speed of online transactions like bank wiring is greatly appreciated. They lack any sort of system for checking information.

Relational data is essential to databases, which otherwise function independently. By contrast, Blockchains are utilized in monetary transactions, financial transactions, decentralized applications, voting, data storage and verification, distributed ledgers, peer-to-peer networks, and the issuance of digital currencies.


Data storage in the form of databases and distributed ledgers, or blockchains, are two distinct and vital technological advances. Both forms of technology provide a unique service and, depending on the context, may offer distinct benefits. It is likely that blockchains will eventually replace all databases if problems with scalability, decentralization, and transaction speed are resolved.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.