Blockchain—it might sound a bit like a medieval fabric, but there’s nothing primitive about this database that upends expectations of what a digital archive is capable of.
Most databases provide centralized data storage, and people and systems who need access to the data must come to that single source to query and receive but blockchain changes that.
by Brian Berry | Nov 20, 2019 for Industry Week
photo: istockGettyImages
Blockchain, however, is a decentralized database; there are multiple copies of the blockchain database, and each copy is considered a “peer” of the others. When a change occurs to one copy, the technology works to ensure that the same change is applied to all, so in effect, there is no “master” database.
In a fully transparent, multi-party blockchain database, all of the participants hold their own copy of the database. Any new data arrives in real time in each participant’s copy of the blockchain database. There is no need to consult a third party—each participant has an authoritative ledger.
Updating multiple copies in real time can allow multiple users to make edits to the same piece simultaneously instead of saving multiple versions or circulating a file or document from person to person. It can also be helpful in the case of a private database where only authorized parties can see the information.
Blockchain has two fundamental functions—record-keeping and transacting.
1. Distributed record-keeping on blockchain provides the capability to store and manage static reference information that require high levels of trust—i.e., one where there is no central party or single trusted authority to control or solely access the information. This element is essential in the current digital environment where identity fraud is alarmingly prevalent.
