Blockchain is a special type of database management system that has many more functions than regular databases. We discuss some important differences between traditional databases and blockchains:
1. Blockchain decentralizes control without breaking trust in existing data. This is not possible in other database systems.
2. Companies participating in the transaction cannot share their entire database. But in a blockchain network, every company has a copy of its ledger, and the system will automatically maintain consistency between the two ledgers.
3. While in most database systems you can edit or delete data, in a blockchain you can only insert data.
From a higher standard, both traditional databases and blockchains are infrastructures for data storage and data management.
Traditional databases can implement the functions of blockchain technology, and blockchains can access databases. However, if there are multiple business parties that need to perform transactions, those business parties may not trust the individual database owner. However, the owners of these individual data tubes can create, update and save the data of various records.
The biggest difference between the two lies in the distributed ledger. We have indeed developed distributed databases, but most distributed databases are owned by individual enterprises, and these enterprises have different reasons for adopting distributed databases. "
Blockchain technology is a fantastic technology that allows for the creation and preservation of an immutable record of transactions on a distributed ledger, with institutions on the chain having an identical copy and access to it. At the same time, it can achieve invariance, security, privacy and the ability to audit all parties on the chain.
Unlike a database where only one administrator sets the rules for the ledger, a blockchain has multiple administrators, each with an exact copy of the ledger. In a database, administrators control what permissions data can be shared with different users, and when transactions are committed, they are immediately committed to the ledger.
Blockchain's distributed ledger technology is based on a peer-to-peer (p,2,p) decentralized architecture with multiple administrators as part of its consensus protocol. In other words, transactions on the blockchain network are first proposed and then agreed upon by the community. As long as 51% of people agree to the transaction, the transaction can be accepted, and then the transaction is added to the ledger.
The blockchain’s consensus protocol also means that it is fault-tolerant, and it can continue to function even in the presence of malicious users, since the majority of users will maintain the authenticity of the transactions.