Blockchain-based databases have many limitations. However, the current prevailing wisdom is to combine conventional relational and blockchain databases’ strengths to overcome these limitations.
One database will be able to utilise the best features of both technologies thanks to this combined software stack. As a result of the blockchain stack, the database will be decentralised, immutable, and enhanced with enhanced assets. Still, due to the distributed database, the database will be scalable and faster at processing data.
A hybrid database should have several administrators who are in charge of the sharing of data. This is essential to ensuring a successful hybrid database implementation. With this method, the decentralised characteristics of a blockchain database can be maintained while maintaining a distributed nature.
Creating a blockchain database is easy using these four methods:
A blockchain data store that is operational and enterprise-ready
Operational data stores (ODS) are used to make operational decisions and report operations. All the information from business processes not involved with the blockchain database will be represented by operational data in our combined distributed/blockchain stack database.
It is necessary to have two or more administrators controlling the database from different locations to implement the decentralisation feature of blockchains.
Data from non-operational blockchains that enterprises can use
It is necessary to take a non-operational approach to facilitate client access to the database. As part of this approach, intermediaries are set up who can access and send information stored on blockchain databases.
Despite not being able to access the database, clients could still access the information. Its short-latency periods are a crucial advantage over standard blockchain databases.
A consortium for operational blockchain data
Using a consortium approach is more in line with traditional blockchain ideologies. Multiple databases could be gathered from as many individuals or companies as needed to form a consortium.
The database would thus remain completely decentralised, and no single individual or company would maintain control over it. Each company’s responsibility would be to maintain the database since they would act as individual nodes. Supply chain management, for instance, would benefit from such an approach.
Data from non-operational blockchains with consortiums
To access data held in a database, intermediaries will again be used. It would be beneficial for companies that collect and store personal information or sales information that might be needed by affiliates and outside parties who are not authorised to access the database directly.
You will need top blockchain developers to deliver top-quality performance if you want to build a scalable database.
Building a blockchain database presents several challenges
Blockchain-based databases present several challenges. The following are some of them:
- The blockchain consensus mechanism algorithms have a low throughput and a high latency. The transaction throughput and latency of popular public blockchain networks like Bitcoin and Ethereum are low.
- A blockchain network’s scalability is further reduced by adding decentralised nodes, which increases network traffic. There is a lack of scalability in public blockchain networks.
- A database must have querying capabilities. That is one of the critical disadvantages of blockchain technology.
The following steps will guide you through creating a blockchain database. It is simply impossible to ignore the benefits of blockchain databases. Companies must implement anything that gives them an edge over their competitors as quickly as possible in the business world.
Blockchains are SQL databases, right?
Byzantine Fault Tolerance and transaction tagging are just some of the features and benefits of a blockchain-based database that complement SQL and NoSQL databases.
Is it possible to hack blockchain?
Due to recent vulnerabilities discovered by hackers, blockchain hacks have dramatically increased. According to public data, approximately $2 billion worth of blockchain cryptocurrency has been stolen since 2017.
Do blockchains outperform databases?
Data once written to a blockchain cannot be rewritten or erased once it has been written. Within the network, there is no possibility of tampering with data. Rogue administrators or third-party hackers can manipulate traditional databases because they lack immutability.