The Immutable Ledger vs. the Editable Record

While regular databases, such as MySQL, are managed by a centralized source, such as a company, Blockchain is a decentralized ledger shared among multiple participants, with each new entry generally being permanent, with the exception of forks or chains that allow rollbacks.

When it comes to databases, they're generally queried through a central source and updated in the same way. While this is typically faster, as everything is managed in one location and can be scaled based on demand, it comes with issues such as susceptibility to downtime and reliance on a single central authority.

Blockchains, in contrast, are decentralized. Data is stored across a network of computers, often referred to as nodes. Each node holds a copy of the entire ledger, and new entries must be validated and shared across the network. This makes it possible to ensure there's no single point of failure. With Blockchain solutions, every update requires network consensus, meaning blockchains have historically been seen as less flexible and efficient than centralized databases. However, this has changed in recent years with the emergence of layer two solutions and DAG-based ledgers.

Databases tend to emphasize speed and efficiency, while blockchains emphasize distribution and security, sometimes at the cost of speed.

Trust and data control elements

The underlying trust structure is one of the most important differences between traditional databases and blockchain ledgers. Most databases operate in a way that relies on a central authority, typically an organization, administrator, or IT department, to maintain the server and database. This authority may provide or revoke access, modify or delete data, and protect the system. When you have a bank account, for example, you trust the bank to keep track of your balance correctly and keep your information safe from theft. This setup encourages responsibility and makes it easy to rectify mistakes, while also cultivating confidence in a single governing body.

On the other hand, people often refer to blockchain technology as "trustless." This doesn't mean that trust is gone; it just means that it has been redefined. People trust the system due to its cryptographic principles, clear operations, and a distributed consensus, rather than relying on a single central authority. This paradigm protects the integrity of information not by one person, but by the network as a whole, checking it.

When it comes to blockchain-based ledgers, no single participant can unilaterally alter records, as all transactions are validated by the network as a whole and are permanent once they are added to the ledger.

Ultimately, traditional databases are governed by an authority you trust, while collective rules and consensus govern blockchains.

Immutability: Permanent vs. Editable Records

Since databases are flexible by design, it's possible for those with the correct permissions to update entries, correct errors, or delete records as needed. Although this flexibility is part of what makes databases more appealing, as it makes it possible to correct typos on profiles, update patient medical records, along with the other countless use cases provided by traditional databases, this can also be a problem, as it becomes possible even with safeguards such as backups and logs for those with access to delete or incorrectly edit entries.

Unlike databases, which can be edited, Blockchains are append-only, meaning that once data is added and confirmed, it cannot be removed in most cases.

This includes mistakes and errors, meaning corrected entries would need to be added to the ledger, while the prior entries would remain in existence. The technical aspect of this is due to each block on the blockchain network being cryptographically linked to the prior one, establishing consensus and immutability. If a rogue actor were to try to alter these records, the links would break, and the network would reject the altered state. The benefit of this is high integrity, as you can be sure records haven't been altered.

Use Cases and Strengths

Blockchains and databases are best suited for different situations due to their structural differences.

Blockchain strengths:

In cases where multiple individuals or companies need to share data without relying on a centralized third party, Blockchain provides the best solution. Outside of regular data, blockchains such as Bitcoin and Ethereum enable the transfer of digital currencies, tokenization of assets, and numerous other use cases, all without the need for a central authority that requires trust and dependence on maintaining service availability by keeping it online. Businesses apply blockchains in supply chains, recording every step a product takes from producer to retailer in a transparent ledger. They're also used to prove authenticity or ownership, such as digital collectibles, land titles, or audit trails.

In situations where transparency and trust among multiple parties are prioritized over speed or flexibility, such as in digital asset verification or supply chain management, blockchains are most effective.

Database strengths:

Most mobile apps, web apps, and other traditional applications still utilize conventional databases, as they generally perform well in cases where speed and flexibility are crucial. Databases are used across numerous industries and in various use cases, including banks, hospitals, e-commerce websites, and social media platforms, among others.

Developers can design data structures that meet their requirements and modify them as needed. A database can be the perfect option if speed, complicated queries, and centralized control are more important than decentralization.

Conclusion

While some still prefer databases, this is changing as newer, faster networks emerge, making it less complicated and more seamless to switch to blockchain-based ledgers for applications of all types.

Blockchains enable the creation of a shared, tamper-proof record among parties that may not have complete faith in one another, as well as those that do, by providing decentralization, consensus-driven trust, and immutability. The gap is starting to close as Blockchain technology evolves, and this decentralized technology becomes increasingly capable and viable to use instead of traditional database structures.

While it's unlikely that MySQL and other databases will cease to exist or become less popular anytime soon, it's clear that newer applications, as well as some older ones, are increasingly switching to or adopting blockchain-ledgers as their go-to solution.

About Chain

Chain is a blockchain infrastructure solution company that has been on a mission to enable a smarter and more connected economy since 2014. Chain offers builders in the Web3 industry services that help streamline the process of developing, and maintaining their blockchain infrastructures. Chain implements a SaaS model for its products that addresses the complexities of overall blockchain management. Chain offers a variety of products such as Ledger, Cloud, and NFTs as a service. Companies who choose to utilize Chain’s services will be able to free up resources for developers and cut costs so that clients can focus on their own products and customer experience. Learn more: https://chain.com.

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