How does blockchain database technology compare with conventional data storage and transfer technologies?
The answer is clear — blockchain can provide virtually any feature or functionality a conventional database can, in addition to those essential for further development.
Data storage for secure transactions needs to be open, public and free from the financial as well as equity costs of intermediaries, but typically it isn’t. With blockchain database solutions, however, it’s a different story.
A Bitter Irony — For Conventional Databases, Anyway
A blockchain database solution, especially one using public blockchains, is based on the consensus of dozens, hundreds or even thousands (in Bitcoin’s case) of individuals called miners and stakers, who validate transactions and monitor a blockchain’s behavior.
To a conventional mindset, the openness of blockchain may seem to make transactions less secure virtually because anyone can see them. However, users’ identities are visible only as long strings of encrypted gibberish, and blockchain provides the benefit of having multiple validators making sure that transactions are legit.
Conversely, conventional databases are typically open only to administrators and developers maintaining them. Because of this, traditional databases are subject to many kinds of cyberattacks.
The way a blockchain database solution can be inherently public and transparent — and not hidden behind a centralized and limited authority — makes it much harder for others to manipulate data to fit their own agendas.
Moreover, blockchain isn’t subject to the damage caused by dirty data, which is maliciously or accidentally erroneous duplication or changes to data. This is because a blockchain’s data is immutable, meaning it cannot be deleted or altered in place.
Indeed, replacing restricted databases, such as those holding users’ data and using it without their knowledge, can pave the path towards a safer, more consensual society.
Optimization for Your Business and Pocketbook
Other aspects of blockchain database technology can benefit an enterprise in more explicitly financial ways. For example, blockchain allows for more reliable and accurate real-time data analysis, feeding predictions that improve the bottom line.
What’s more, and in contrast to centralized finance (CeFi) platforms, DeFi blockchain database solutions can prevent centralized authorities from charging high fees for crypto coin and token transactions, unnecessarily extracting funds a new enterprise needs to thrive. Likewise, costs for proprietary software roadblocks are eliminated because the code for blockchain is typically open-source.
Dealing with DeFi Growing Pains
Although DeFi excels over CeFi in terms of transparency and security, the scalability issue that’s often plagued blockchain in general, and DeFi public blockchain especially, can often give conventional database technology an advantage over blockchain database technology. In blockchain, scalability is basically measured by the amount of data transactions that can be run in a given amount of time.
Much of the scalability issue with DeFi blockchain results from the available amount of routes and resources compared to the transaction flow demanded of it, causing bottlenecks and less-than-optimal transaction speeds. Proposed solutions include the ongoing development of Ethereum 2.0.
Another common issue in the DeFi blockchain database technology space is lack of interoperability among different blockchains. This means that it can be more difficult to trade one kind of crypto coin or token for another kind, which is due to the fact that crypto tokens are usually built on fundamentally different protocols.
Living the DeFi Dream for Data, Today
Although any DeFi platform will offer the benefits of security, transparency and removal of costly intermediaries, few of them can engage solutions to DeFi’s limited but nagging deficits the way AIKON can. AIKON’s offerings a comprehensive blockchain database solution that provides interoperability with multiple blockchains while increasing scalability.
In addition to ORE ID — AIKON’s unequaled user-friendly and universal identity management solution — the blockchain innovator has been working with the OR (Open Rights) Foundation to provide true cross-chain capabilities. This means that no matter which public blockchain your enterprise engages in, you’ll have interoperability with potentially any other public blockchain through the Foundation’s ORE Network and the ORE utility token that fuels it.
Along with this increased interoperability comes improvement in scalability. With more cross-chain exchanges possible, more transaction traffic can be handled on more blockchains, seamlessly.
In the end, conventional databases have had their day, but the future is all about blockchain database technology, in terms of openness, security and ultimately, optimized processes and profits for its users.
Contact AIKON today and find out how your enterprise can be part of this future right now!
About AIKON
Blockchain and crypto are technologically complex. AIKON makes it simple. We’ve built a suite of intuitive products built on the ORE Network ($ORE) for enterprise companies looking to provide a seamless user experience that works cross-chain with Algorand, Ethereum, EOS and more.