A relative newcomer to the tech scene, blockchain has the potential to revolutionize how businesses and companies manage and manipulate data. Blockchain is a digitized, decentralized, distributed database commonly referred to as a distributed ledger that records all the information introduced in the blockchain network in ordered records named blocks. To ensure tamper resistance and data integrity, each block contains the hashed information of the previous block, creating a chain-like structure of interdependent blocks. The created database is then replicated and shared among network participants (nodes) which ensure overall transparency. If a node becomes compromised, the system can recover all the data from full nodes that store a copy of the entire blockchain. In order to add new data in the blockchain, the majority of nodes that compose the network need to reach a state of consensus concerning the data that will be introduced. This is achieved through a consensus mechanism which ensures that no malicious data can be introduced in the network by bad actors.
Even after more than a decade since blockchain has hit the tech scene, many people still display a certain degree of confusion when it comes to explaining this technology and understanding its potential ramifications in industries and the enterprise segment. This confusion escalates when people try to compare blockchain with a technology deeply rooted in the modus operandi of large and small companies alike, namely traditional database systems. To a certain degree, this misunderstanding is justifiable, because a blockchain has an immutable database, but a database is not a blockchain. As such, the question still stands – What is blockchain database? The answer is quite straightforward. It is an innovative concept which fuses the advantages and familiar user experience of a traditional database system with a blockchain backend to create a tamper-resistant structure that guarantees data integrity, availability and transparency. All of the inherent characteristics of blockchain technology and the unique architecture combine together to provide a suite of benefits through which the enterprise sector can unlock new layers of value and efficiency.