Understanding the Blockchain
The complicated appearing Blockchain is quite simple in reality. Since Blockchain is a kind of Database, to understand Blockchain, it is important to understand the Database first. The collection of information stored in an electronic form on a computer is known as a Database. The data or information in the Database is stored in a table format that is typically structured and makes it easier to search or filter any specific information. Let’s understand the difference between using a spreadsheet and using a Database to store any information.
Spreadsheets are deliberately designed for the usage of a single person or a group of persons to store information in a limited amount. Whereas, Database is relevant when a large number of users need to access, filter, or manipulate data in a significantly larger number at the same time.
Large databases house their data on servers made up of powerful computers. There are thousands of computers used to build the servers to have a storage capacity that is necessary along with the computational power so that many users can have access to the Database at the same time.
Any number of people can use both the Database and the spreadsheet simultaneously, and they are usually owned by any business group and supervised by individuals who have absolute control of its working and the data stored within.
Understand the difference between a blockchain and a database by Crypto Genius
The key difference between a database and a blockchain is the storage structure for data. In a blockchain, the information gets collected in groups that are known as blocks in which the set of information is stored. There is a certain storage capacity for each block; once the block gets filled, it is chained to the block previously filled. This formation of a chain of data is known as Blockchain.
The data is structured in tables in the Database, whereas it is structured into blocks in the case of Blockchain, where the blocks are chained collectively. This system of Blockchain makes the data irreversible in its timeline as it gets implemented in a decentralized form. The block gets filled completely becomes a part of a timeline as each block gets a timestamp at the time when it gets added to the chain. The new blocks are added chronologically and linearly stored.
Similar to a database, there are a collection of computers required in Bitcoin to store its data. Blockchain is also a type of Database for Bitcoin that stores all of its transactions in order. But unlike the other databases, in the case of Bitcoins, the computers are not stored or located under one roof; a single individual or a group operates each or a set of computers.
The data is stored in nodes in a blockchain since its beginning. The total record of the Bitcoin transaction history is maintained in this data. Just in case an error occurs in a node, it can use the record of thousands of other nodes that are available in order to correct its data. This assures that no node can alter any information that is held in its network. It is due to this reason that the history of the Bitcoins’ transactions is irreversible through the Blockchain.
All the transactions of Bitcoin have transparency to the users as it is of decentralized nature. The transactions can be viewed transparently by its users anywhere from either their personal node or any other blockchain explorers. There is a copy of the chain for each node that gets updated when new blocks get confirmation and added to the chain. Therefore, you can track Bitcoin anywhere.
Like, earlier, when the exchanges used to get hacked, the users would lose all the Bitcoins they held on the exchange. Although it would be impossible to get track of the hackers, it was always easy to trace the Bitcoins that had been hacked by them. Also, if anybody moved any of the Bitcoins or spend them anywhere, it would still be able to trace that transaction.
It is due to these kinds of features that Bitcoins ensures the security of its data and creates trust amongst its users.
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