Difference between Blockchain and Database

A Blockchain is a distributed database or ledger in which data is stored in blocks. It is built on distributed ledger technology, which may be utilized between parties that do not trust each other with sensitive information. Because whatever you put on the Blockchain must be verified by all other users on the network.

To offer cryptographic security, Blockchain stores information permanently in equally sized blocks, with each block storing the hashed information from the preceding block. The Blockchain uses the SHA256 hashing method, which is a one-way hash function. The previous block's contents and a digital signature are hashed together. The hashes of previous blocks, dating back to the first block released on the Blockchain, are stored in the genesis block. A Merkle Tree is the data structure of a Blockchain, and it is used to validate data efficiently.

Advantage of Blockchain

The following are among the reasons behind the growing popularity of Blockchain technology.

Time savings: Blockchain has the potential to speed up transaction settlement in the banking industry. Verification, settlement, and clearance are not time-consuming procedures.

Unchangeable transactions: Once a new block is added to a ledger chain, it cannot be removed or altered.

Reliability: Blockchain confirms and verifies each interested party's identity. This reduces rates, removes duplicate records, and speeds up transactions.

Security: Blockchain employs cutting-edge cryptography to ensure that data remains secure within the Blockchain. It uses Distributed Ledger Technology, which ensures that the system continues to work even if a large number of other nodes fail.

Decentralised: There is no central authority overseeing anything, so everything is decentralised. Every node must follow the same set of rules while exchanging Blockchain data.


Databases are a form of central ledger that keeps track of everything for the administrator. The administrator grants read, write, update, and delete permissions here. Because they are centralised, maintenance is simple, and productivity is high. However, it has a disadvantage in that, if corrupted, it can jeopardise all data and potentially change the ownership of digital documents.

The client-server network architecture is used by databases. All parts of the data and its organisation are within the control of the database administrator.

Database Advantage

Because of the following, the database has grown in popularity.

Controls database redundancy: This is due to the fact that it keeps all of the data in a single database file and records the data.

Data sharing: DBMS allows an organization's authorised users to exchange data with numerous users.

Maintenance: Easily Due to the centralised design of the database system, it can be readily maintained.

Reduce time: It saves time in terms of development and maintenance.

Backup: It includes backup and recovery subsystems that make an automated backup of data in the event of hardware or software failures and restore it if necessary.

Multiuser interface: Different types of user interfaces are available, including graphical user interfaces and application programme interfaces.

Database vs. Blockchain

SNBlockchain Database
1Because there is no administrator or in-charge, Blockchain is decentralised.The database is centralised since it has admins and in-charge.
2Blockchain is permissionless since anybody may access it.Because the database can only be accessed by entities with access privileges, permission was necessary.
3 Blockchains are inefficient.Databases are lightning quick.
4It has a record history and digital record ownership.It has no record history or ownership information.
5Blockchain is completely private.The database isn't completely secure.
6The single operation on the Blockchain is Insert.The database supports Create, Read, Update, and Delete actions.
7It is a procedure that is quite dependable.It is not a completely reliable technique.
8Blockchain allows for disintermediation.The database does not allow for disintermediation.
9 Anyone with the appropriate proof of work can add to the Blockchain.Only those with the necessary permissions can read or write.
10 Blockchain is not a recursive technology. We are unable to return to any record and repeat a task.The database has a recursive structure. This screen can be used to repeat an action on a specific record.
11No administratorRequires administrator
12When utilised as a database, Blockchain is perfect for transactions, but it slows down when dealing with big amounts of data.Centralized databases have been around for a long time and have a respectable track record, but they are sluggish for some functions.

The table below shows the differences between Blockchain and database.