Let’s begin with a little brief history of Blockchain to understand this topic better. Blockchain may sound new to many as most of us may not have heard about it before but it’s not something new. Blockchain or chain of blocks that are cryptographically secured was first described by Stuart Haber and W Scott Stornetta back in 1991. Then Nick Szabo who was a computer scientist, decentralized digital currency back in 1998. In 2000, Stefan Konst published his theory on cryptographically secured chains including his ideas for implementation where most of the work began. Then in 2008, the model for a blockchain was established by some developers, and then in 2009, Dorian Nakamoto (Satoshi), a Japanese-American citizen implements the first blockchain as the public ledger for transactions made using bitcoin, see Mr. Nakamoto picture below (History of blockchain. n.d.):
Blockchain sounds like a complicated topic but in reality, it’s quite simple especially for IT professionals because we work closely with databases and understand the concept very well. A blockchain is a type of database, the only difference between typical databases (stored electronically on a computer system or server) vs. blockchain is the way data is structured. In a blockchain, data is gathered in blocks or groups which is why they are called “blocks” and once those blocks are full with data, then it chains on the previously filled block, basically making a chain of blocks that’s how it called “blockchain”, a chain of blocks. Now the difference between database structures vs. blockchain is that normally database structures its data into tables whereas a blockchain, structures its data into chunks (blocks) that are chained together. Each block in the chain is given an exact timestamp once it’s added to the chain so that it can be uniquely identified compare to a typical database that simply just adds data to the table format structure (Blockchain Explained. 2020, November 17).
Here is a screenshot of how a new transaction would look like in blockchain compare to a typical database to understand it better:
Now, how does blockchain work? A blockchain network uses a P2P or "Peer to Peer" network, in other words, we can say that it stores the data across a huge network of a computer instead of just a central server, which means a copy of the blockchain is present to every user or every network of computer, that means a hacker will have to change the information in the whole chain to break the security, so that’s why blockchain is the future of modern data transfer technology. There are several benefits of using Blockchain or chain of blocks, here are some below:
- Decentralized System
- Controls
- Data manipulation with time
Based on several online articles including several facts, there is no doubt that blockchain is indeed a future of database structure that can be utilized for several different reasons, such as voting, records storage, healthcare, cryptocurrency, banking industry, and more. In other words, an industry that’s seeking data privacy can utilize this technology to keep the data safe.
This all sounds great, does anyone even use Blockchain already? Yes, there are several organizations out there that are already using this technology for their storage solution, here are top 50 that’s been using this technology (Iredale, G. 2020, December 28):
What about cost? Is Blockchain cheap or expensive? Blockchain is pricy compare to a traditional database in short-run but will cost less in the long run because blockchain solution is mostly managed by peer’s network. As far as how much it cost, it varies as it all depends on project requirements. To just share an estimate, a blockchain app development cost starts at $5,000 and can go as high as $200,000.
Resources:-
Tsepko, A. (2020, November 25). Five Technology Trends To Watch For In 2021. Forbes. https://www.forbes.com/sites/forbestechcouncil/2020/11/30/five-technology-trends-to-watch-for-in-2021/?sh=6c2130215c3b
Blockchain Explained. (2020, November 17). Investopedia. https://www.investopedia.com/terms/b/blockchain.asp
History of blockchain. (n.d.). Technology | ICAEW. Retrieved May 4, 2021, from https://www.icaew.com/technical/technology/blockchain/blockchain-articles/what-is-blockchain/history#:%7E:text=Blockchain%20has%20the%20potential%20to,the%20pseudonym%20of%20Satoshi%20Nakamoto.
Sahu, M. (2021, April 4). 8 Reasons Why Blockchain Technology Is the Future. UpGrad Blog. https://www.upgrad.com/blog/reasons-why-blockchain-technology-is-the-future/#:%7E:text=In%20this%20network%2C%20a%20copy,of%20modern%20data%20transfer%20technology.
Iredale, G. (2020, December 28). List of Top 50 Companies Using Blockchain Technology. 101 Blockchains. https://101blockchains.com/companies-using-blockchain-technology/
Comments
Post a Comment