Blockchain vs Database: 3 Amazing and Important Differences

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Blockchain vs Database: Most Important Difference

Blockchain allows you to perform transactions transparently and unmutable. This is important because there is always the problem of inconsistency with many different people. A reason for this are people who are trying to cheat. But even if we trust the person completely, human errors can happen. Imagine you want to meet someone. It can happen that your watch unknowingly goes wrong. This makes a delay unavoidable. These problems can also arise with central databases. We will show you the difference between blockchain vs database.

“Blockchain vs Database: Most Important Difference” – Content:

  1. What is a database?
  2. What is a blockchain?
  3. Blockchain vs. Databases
  4. Blockchain Database Use Cases
  5. Conclusion

What is a database?

A database is a structured collection of data. You can use this information for other systems or applications. You can also use a database to create reports or analyses. Therefore, they support companies in business, financial, and management decisions.

What is a blockchain?

A blockchain is a digital, transparent, public ledger. So it is nothing more than a digital financial ledger in which all transactions of each member are documented. A mechanism creates consent between distributed unknown parties.

Blockchain vs. Databases

The first important difference between the blockchain vs database is decentralization. As we have seen in our example, errors can occur due to a central source of information. The same can happen with a traditional database. Here you store all data centrally. With a blockchain, each user has a backed-up copy of all data records and all changes. So, this allows you to immediately recognize and correct any unauthorized changes. In the case of our example, your clock would automatically show the correct time. Even if someone would maliciously change your clock.


Now how can you take advantage of this? Nowadays, many different companies work together. They almost never share a common database. This means that there is often a data inconsistency between two databases. But the problem is not only across companies. Many departments in a company use different databases. Thus, inconsistencies can also arise here.
With the Blockchain technology, we can eliminate this problem. We no longer have a single point of failure. Thus, this means that if you change something, all systems are automatically updated. We can also see who changed something and when it was changed. This allows us to trust the data and enables smooth collaboration, both internally and externally.


The second important reason is the lack of trust. You no longer have to trust anyone to update the data properly. Nor can anyone simply manipulate or change the data. As a result, we can trust that the data in the blockchain because it is valid and tamper-proof.
If other departments or companies trust the shared data, this creates new business opportunities. If two companies in a supply chain use one database, processes can be handled more efficiently. In addition, a transport company can use the database to track goods and provide this information to their customers. If a bank joins the network, it can automatically trigger transactions if the conditions in the contract are met. Thus, decentralized databases can lead to new economic constructs that are faster, cheaper and more efficient.


Since a blockchain consists of millions of nodes, it is everywhere. Thus, there are no boundaries. So if you want to send a Coin to Europe, no one can stop you. Even if you want to get information, there are no borders to stop you. As a result, this transparency ensures that we can trust the data because anyone can control it.

Blockchain Database Use Cases

With the Blockchain as a database we want to create trust and transparency. It should allow everyone to access information. We can also automatically validate transactions.

Shared Supply Chain Database

When companies along the supply chain hand over products to other companies, there are a lot of paperwork and signatures. Companies can use the blockchain to share a database. Smart Contracts can be used to process contracts and signatures automatically.

AI/Algorithms Database

If you want to develop an algorithm or an AI tool, data is the basis. So it can often happen that the data required for this comes from different databases. As a result, data inconsistency is a big problem. If something is changed in one database, it is possible that the other databases or systems are updated later. This can lead to big problems.
Blockchain can solve the inconsistency because all systems and databases are updated automatically. So you can easily develop data-based business models and applications.

IoT Database

Our world today is becoming increasingly connected. Iot sensor technology ensures that almost everything is measured and analyzed. In doing so, we must be able to ensure that the data in the database is valid.
Blockchain-based IoT sensor technology can ensure that only valid data is in the blockchain. This means you no longer have to check if the data is correct. This ensures that we can trust the data. Consequently, new business models can be developed that better support companies and private individuals.

Digital Contract Database

Contractual terms are often very time-consuming and inefficient. For example, if you want to buy a car, you have to be in constant exchange with the seller. In doing so, you have to pass on information from authorities/banks etc. Afterward, a contract has to be drawn up and when all conditions have been checked and fulfilled, the car can be taken away.
With Blockchain we can digitally map Smart Properties. So, if you want to buy a car, the seller only has to put the conditions and all the important information in a Smart Contract. If you want to buy the car, you can read everything important by handing over the public key. If you have fulfilled all the conditions of the Smart Contract, it will automatically trigger. In the Blockchain, you are now registered as the new owner of the car.

“Blockchain vs Database: Most Important Difference” – Conclusion:

Both databases and blockchain have their advantages. The big advantage of a blockchain database is the decentralization and the lack of trust. Thus, this allows us to avoid inconsistencies and checks. These are important when it comes to AI, algorithms, IoT and digital contracts. Our world is becoming more and more decentralized and for this we will need decentralized solutions. Blockchain will be an essential factor for new digital solutions.

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