Blockchain technology has been a trending sensation in the technology industry for a while now. Let’s briefly take a look at what Blockchain technology is.
Blockchain is a type of database, but more secure than the traditional ones. Compared to traditional database, Blockchain technology is decentralized. There is no central authority which controls permissions and access to the database. Transactions in a Blockchain database are approved by everyone and everyone has access to these transactions, history and record. This creates transparency and authenticity of the data stored. Data stored in blockchain also holds great integrity as compared to traditional database. Traditional database allows CRUD (Create, Read, Update and Delete), where as blockchain only allows Read and Write operations. This ensures the genuineness and trustworthiness of the data.
Generally in databases it is comparatively complex to store all the different levels of various data. Blockchain specifically simplifies storing multi-level data through its data storing process.
When a new transaction is entered in the system it is transmitted to the entire network of peer-to-peer computers across the globe. This network confirms the validity of the transaction after which each transaction is converted into blocks. These blocks are made a part of a permanent chain where the transaction then exists. With this the transaction is completed.
Blockchain database can be of two types. One is a public and completely decentralized Blockchain database and the other is the hybrid database, with some features of Blockchain and some features of traditional database. Public Blockchain database can be accessed easily by everyone, however, hybrid database are more confined and generally set for use by a certain group, for example in a company. Consequently, transparency is higher in public Blockchain database as compared to hybrid database, as access to information can be controlled and transaction can be more easily tampered with.