What Sets Blockchain Solutions Apart From Conventional Record-Keeping Solutions

Blockchain and its solutions are everywhere these days. From its initial incorporation in the financial record-keeping sector, Blockchain is now being implemented in various other fields. Have you ever wondered what sets Blockchain solutions apart from conventional record-keeping solutions?   

Originating in 1991, Blockchain is used to store and secure Digital data. It operates on a ledger (a distributed record-keeping system) that keeps track of asset changes within the chain. According to Statista, global spending on Blockchain-based solutions is anticipated to increase from 3.7 billion in 2020 to 15.85 billion by 2024. 

Read this blog to learn what sets blockchain solutions apart from conventional record-keeping solutions. 

Table of Contents

1) Blockchain vs Traditional Database  

2) What sets Blockchain solutions apart from Conventional Record-keeping solutions?  

3) How secure is a Blockchain database?  

4) Advantages of using Blockchain for Record keeping  

5) Conclusion  
 

Blockchain vs Traditional Database  

Your answer to the question- 'What sets Blockchain solutions apart from Conventional Record-keeping solutions? ' can be understood only when you know about both databases.  

Traditional Databases  

Every traditional database makes use of a Client-Server Architecture. In this architecture, a user can modify the data, which is then stored on a central database or centralised server.  

A designated authority holds control over the entire database. This authority authenticates the user's credentials before providing access to the database. The data can also be changed and deleted if something is compromised with the administration of the database.  

Blockchain Database  

The significant difference between the traditional and Blockchain database is that the Blockchain has multiple “Decentralised nodes”. Every node is involved in the administration process by verifying the new additions to the Blockchain. This helps ensure that the new data is never missed out and added to the database.  

In a traditional database, people having the right access can destroy or corrupt the data. Whereas the nodes in the Blockchain work under a consensus mechanism that provides security. So, it becomes impossible to tamper with the data. This is one of the key factors that sets Blockchain solutions apart from Conventional Record-keeping solutions.  

Learn how to use AWS managed Blockchain network quickly and efficiently with our Amazon managed Blockchain Training.  

What sets Blockchain solutions apart from Conventional Record-keeping solutions?  

Have you ever wondered why people are switching to Blockchain solutions? The following factors that set Blockchain solutions apart from Conventional Record-keeping solutions.  

Integrity and Transparency  

The sheer difference between the two databases is that Blockchain provides Integrity and Transparency at the highest level. In terms of Integrity, Blockchain ensures that the data retrieved is uncorrupted and unaltered. One of the significant features of Blockchain is 'Transparency'. Here the records are shared only with trusted parties or those with permission.  

CRUD vs Read and Write Operations  

Another factor that differentiates a Blockchain is in terms of its functions. In a Blockchain, the user can only add data; the previous data can never be changed because it is saved permanently. The operations associated with Blockchain are only Read and Write, whereas the traditional database performs four functions - Create, Read, Update, and Delete (CRUD).   

Validation and Writing  

Blockchain has two essential functions: validating and writing a new transaction. Transactions are operations that change the state of a given data in the Blockchain without altering the previous ones.   

Only the data which can be altered or modified after a transaction can exist on a Blockchain network. It converts such data into an immutable ledger. 

How secure is a Blockchain database?  

Blockchain works on a 'ledger' of decentralised databases. It is so open that anyone can view, edit, and propose changes to its code base. Also, it allows users to create transactions with one another. The content of these transactions is stored in new blocks.   

Based on the application, there are different algorithms for encrypting transactions. Encryption secures the new data that is to be added to the Blockchain. 

You can become a member of the highly popular computing platform by taking our Amazon AWS Training.  

Advantages of using Blockchain for Record-keeping  
 

Blockchain technology stands out as it is more reliable, secure, and different from other record-keeping technologies. Some benefits of using Blockchain for record-keeping are as follows: 

Reduction of Cost  

A third party keeps track of all the data in conventional record-keeping systems. However, a decentralised digital ledger records everything in a Blockchain, avoiding any witness or formal record. This helps reduce expenses, most of which was spent on third parties earlier. 

Enhanced Security  

In conventional record-keeping, the data is stored formally, and all the new entries of a transaction are easily added or removed. But, in Blockchain, the data is stored as blocks in a digital ledger. Hence, there is zero chance of hacks or an error occurring.   

Transparency  

Conventional record-keeping does not allow users to access translational data records. The data can be managed only by authorised persons or organisations. In contrast, Blockchain allows everyone involved in the transaction process to access recorded data. Thus, Blockchain justifies the term 'Transparency'. 

Eliminating errors and mistakes  

In Conventional record-keeping, every transaction data is recorded formally or manually by an authorised person. This increases the chance of making mistakes, errors, and omissions.   

Moreover, anyone accessing a traditional database can delete, corrupt, or destroy the information. Data cannot be hacked, interfered with, or manipulated on a decentralised Blockchain ledger. Thus, Blockchain is a more reliable and secure technology. 

Conclusion  

Not just record-keeping, the opportunities for Blockchain technology are vast. Blockchain resolves ‘Trust issues '. We hope the above-discussed information on 'What sets Blockchain solutions apart from Conventional Record-keeping solutions' makes you want to try Blockchain for record-keeping.   

Join our Blockchain Training Course to become an expert in this technology.