Blockchain is the Future

As we all know, cryptocurrencies and blockchain technology have been the talk of the town. Although we hear about it everywhere, blockchain's potential could change the way we structure data forever.

Data is always compiled and stored in a manner that is most efficient and effective for businesses. The basis of blockchain technology is no more than a database that stores transaction data. Blockchain technology is the future of storing data because it is transparent, efficient, and easily traceable with low costs.

It is very transparent since every participant in the network shares the same documentation, instead of individual siloed records. The only way changes are made to the chain is if every member of the network agrees and signs off — making the technology inherently accurate and fair. Transactions in the blockchain are encrypted and linked with previous transactions to enhance security. It is almost impossible to hack because it is stored across a network rather than a single server (Hooper, 2018). Efficiency is also dramatically increased due to the elimination of human errors and third-party intermediaries.

How Does Blockchain Work?

Blockchains are complex technology systems built from blocks. Data is originally stored in signed, singular blocks. These blocks are then connected to share information and access, creating a chain of interconnected data in series. To sign or add new blocks onto the chain, they must be validated by existing nodes in the blockchain (MongoDB, 2021). These new blocks are called Proof of Work (PoW) — verifying their reliability. To ensure any changes are correct, a new signature must be generated, keeping the entire history intact.

Blockchain vs. Traditional Databases

At the end of the day, blockchains are databases — they store information like any traditional database. But the key difference lies in how data is stored and controlled.

The negative side to blockchain is that its verification methods can be slow. Long consensus processes are used to protect data integrity, which reduces throughput. Traditional databases sacrifice decentralization for speed — making each approach better suited to different use cases.

Conclusion

Blockchain technology's versatility and efficiency position it as the future of storing and transmitting data. It can be applied across a vast number of sectors — helping not only businesses, but also governments and healthcare institutions. This technology has already begun to change the world, and we are still in the early innings.