We have seen the digital revolutions where innovations have changed the way to conduct business. Everything has changed from using appliances and gadgets to making financial transactions. With the increase in digital transactions, secure record-keeping is needed. Here we will discuss what sets blockchain solutions apart from conventional record-keeping solutions?
Blockchain is the leading technology for the popular cryptocurrency bitcoin. Users can access and edit data without any central provider through thousands of computers worldwide. It wasn’t easy to check the credibility of digital assets before blockchain solutions.
Let’s get into the blog.
Block Chain VS Traditional Record-Keeping Databases
If we need to know about this, we should understand how each is designed and maintained? You will get an idea of what you can and not do. Read on!
Traditional Databases
Authority is responsible for the administration of the database. Every traditional databases use a client server architecture. Here a user/client can do different modifications to data which is stored on central database or centralized server.
If security is compromised, the data can be changed or deleted. Databases control continues to remain under the designated authority to authenticate user/client credentials before giving access to the database.
Blockchain Databases
You should keep in mind the difference between traditional databases and Blockchain databases. It consists of multiple decentralized nodes. Each node participates in administration and consists of many independent nodes—every node work to verify new additions to the Blockchain and add new data into databases.
Every node takes part in management to check all updates to Blockchain and add new information to the database. Each node reaches a consensus before adding data to the database. It needs to be ensured that the network is secure.
Do You Think Block Chain A Secure Technology?
This type of software allows for decentralized database creation using Blockchain technology. This system is open source, meaning anyone can view and propose changes to the code base. Blockchain databases allow users to do transactions with one another to store the content of transactions in new Blocks.
Different algorithms are used for encrypting transactions depending on the application that generates them. Encryption is used for this process to ensure the safety of new data added to the Blockchain.
What Are The Benefits Of Using Blockchain For Record Keeping?
Blockchain technology has different features which make it more reliable, secure, and different from other recording technologies. Let’s get to know about the benefits:
Cost reductions
Blockchain doesn’t require any third party or organization because everything is recorded in a digital ledger. There is a third-party authority that keeps track of all the data. There is no chance for a witness or formal record. We can reduce our expenses due to a third party or organization.
Enhanced Security
Conventional record-keeping stores data, and there will be no entries of translation that can be added or removed. Blockchain keeps data records in a ledger, so there are no chances for errors and hacks.
Transparency
Conventional record-keeping prevents users from accessing transnational data records. Accredited persons or organizations can manage the data. Anyone involved in the translational process or part of it can easily record data.
The Blockchain is more transparent with agreements and data. Processing storage of the right files and documents can take a few more days due to strict checking protocols.
Eliminate errors and mistakes
Decentralized nature of blockchain ledger where Blockchain data cannot be hacked or manipulated. Conventional method of record keeping involves an authorized person where every translation data or entry formally or manually increase the chances of mistakes, errors, and omissions. The result of Blockchain is more reliable and comprises secure technology.
Validation and Writing
Validation of transactions and writing new transactions are two functions which Blockchain allows its users. Transactions change the state of given data presented on the Blockchain. It doesn’t mean previous data is changed.
These transactions can only change the state of data on the Blockchain. 1 million BTC figures will never vary and permanently be saved as it is. By spending 200,000, the balance would change to 800,000 BTC, but the original data would remain unchanged. This is the reason blockchains are considered immutable and distributed ledger.
What Are The Opportunities For Blockchain Technology?
Blockchain technology opportunities are vast but largely target areas demanding high trust. Take the supply chain, which demands trust at every point, whether for company efficiency, cost saving, or ESG standards. The current supply chain lacks trust; in many cases, traditional methods are used for data storage.
Blockchain provides an easy-to-access, decentralized, and transparent data recording method. Black platforms deliver massive cost savings and efficiency to global companies. Blockhead technologies’ STAMP is a Blockchain-enabled platform designed to track different types of data. It has applications in fuel tracking, supply chain management, and gold tracking sectors.
Conclusion
What sets blockchain solutions apart from conventional record-keeping solutions? With a decentralized structure, Blockchain brings a lot of unique features for practical use cases. Modifications are easily traced by linking new blocks. Different problems occur with traditional storage services. Blockchain presents an improved model for the future that can make storage and trade safe and efficient for everyone.
Blockchain solutions use decentralized data storage to make it reliable in terms of security. These technologies are well-suited to record certain types of data or information. Everyone who wants to utilize such technology should understand what they want from the database and determine the strengths and weaknesses of each kind of database.
