BLOCKCHAIN as a Distributed Database: EPISODE# 2: BLOCKCHAIN for ALL

Опубликовано: 15 Август 2020
на канале: QuantFinance

15,340

/ skillswithmahesh presents:

EPISODE #2: BLOCKCHAIN as a Distributed Database
Welcome to Episode 2 of BLOCKCHAIN for ALL. This episode revolves around the theme that BLOCKCHAIN is a Distributed Database. As we know that a Blockchain is essentially a database, however, it is an innovative type of database called distributed database.
We know that data is everywhere; from morning to evening, in fact all day we generate and use data. However, in business life, the way we store, analyse, and manage our data greatly impacts our efficiency and ultimately the profitability and survival. That is why databases have been around to store and manage business information relating to costs, revenues, incomes, inventory, customers, suppliers and what not.
Simply stated Data is captured through front-end form and stored in back-end database. Most popular database choices are Oracle, My SQL or Microsoft ACCESS.
Traditionally, these databases are designed as centralized database where a central server or CPU retains all the control. In other words, in centralized system data located at a single site that controls the collection, storage, and management of all the data in a database. All client nodes or participants can write and update the database simultaneously.

Downside of conventional centralized is the Security issue and consequences would be disastrous if the central server crashes. Then of course all the participant nodes will get disconnected and the more serious impact is that all the records and central database would be lost…and if you have backup then you have to load the copy of the database from backup before your centralized system is up and running again…and a lot of time would be lost in the mean time. Even otherwise Centralized databases may face failure on account of lack of sufficient bandwidth and participant nodes may not be able to update the centralized database due to poor network connectivity.
Despite all these limitations most of our existing applications are build on centralized Design. Centralized databases are easy to build, of course, but this is not the main reason for which we use centralized architecture. The true reason for using central architecture is that the single authority at the core brought trust in the system as participants would not deal with others whom they have never known.
For instance, today when I order something from Amazon, I am assured of the item’s safe delivery from seller because Amazon plays the role of central trusted intermediary. Blockchain, however, do not really need a third party in between trust is inbuilt into the system.
Blockchain uses distributed database so in blockchain there is a collection of multiple, logically interrelated databases located with all the participants and nodes of the system. In other words, copy of the database is shared among multiple participants of the Blockchain system. It should therefore be very clear that in Blockchain all participants have their own copy of the database. So, when a Blockchain participant updates the distributed database, copy of the database with other participants also gets updated automatically. So, all copies of database are identical and all participants have same view of the database. And the next update to the database will take place on the most recently updated copy of the database.
Being based on distributed architecture, Blockchain has many advantages over traditional applications. The most important among them is powerful consistency support and all the participants do not need to rely on strong bandwidth to update the database by adding a block of transactions to their own copy of the database and with time it gets synchronised in such a way that copies of database gets updated automatically. Similarly, a server crash does not seriously impact the Blockchain system as thousands of geographically distributed participants will be able to still be successfully work on the system. So to sum up, In Blockchain is distributed database where each participant on the network node has fully replicated copy of the database. Each participant node is database manager in itself. When a participant adds a block of transaction data in the database…blockchains update command reflects this update in all other copies of the database with other participants of the network.

In today’s business environment Organizations are geographically distributed and computers are connected to Internet to form a worldwide system. This is likely to give big boost to Block chain system and Blockchain applications have huge potential for all of us. Thanks for joining ..please subscribe and share ..see you in next episode.

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