Why use a Hybrid Blockchain Database

In the case of Bitcoin and Ethereum, information stored on the blockchain is relatively small. We are not referring to the total volume, but to the structure which is saved, namely the hash of the transaction data.

In a blockchain network the predominant data is related to transactions – from whom to whom, when, and how much, that’s about all.

Concerning this aspect, blockchain serves its purpose very well, as it gives users a clear view of every transaction. But when it comes to business, blockchain undoubtedly presents a series of advantages. Also, we must remember that saving information on the blockchain is one thing and storing information on a database is another. Blockchain is an architecture that permanently stores data, by default the level of information stored on the blockchain will determine a significant increase in its volume, but with transaction data that isn’t necessarily relevant.

hybrid blockchain

So, why use a hybrid blockchain database? If you think about it, a software product can’t be supported only with financial transactions as they require numerous layers and types of data to function, but at the same time, it would be redundant and resource-intensive to store all the information on a blockchain.

The general consensus is that enterprise software systems can’t run only on blockchain technology. When a company states that it moved its software to a blockchain infrastructure, everybody should understand that only a segment of the data is moved to the blockchain, data which makes sense to be stored on this type of network and that the rest of it will remain in a database.

When discussing the relationship between enterprise applications and blockchain technology, people must be aware that only a part of the information will be transposed to the blockchain. As such, a system must function as a hybrid between a blockchain and a database.

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