Many of us wonder about the difference between Database and Blockchain and also, How is data added to the Blockchain?
->Blockchain is a type of ledger technology that stores and records data.
In its simplest form, a blockchain is a distributed list of transactions that is constantly updated and reviewed. Also known as distributed ledger technology (DLT), it can be programmed to record and track anything of value across a network spread around multiple locations and entities. This creates a sort of worldwide spider web of connected computers.
A blockchain can be broken down into two components:
The block and the chain.
A block is a collection of data, linked to other blocks chronologically in a virtual chain. Each block also contains a timestamp, so it’s clear when the data was recorded and stored – something that’s vital for things like transactions and many more use cases.
A blockchain does not have a single master copy. Instead, each individual who manages a computer that contributes to the network — also known as a "node" — maintains their own copy of the blockchain and regularly confirms with other nodes to ensure that everyone has the same record of data. There is no single point of failure since each individual contributor stores their own copy of the data. It is also nearly hard for hostile actors to alter the data recorded on blockchains because of this excellent layer of protection.
How is data added to a blockchain?
There are different consensus mechanisms used to verify transactions and add new blocks to a blockchain.
Adding data to a blockchain involves a process where new information is first grouped into a block. This block is then validated by participants in the network through cryptographic methods. Once validated, the block is appended to the existing chain of blocks, forming a continuous and tamper-resistant ledger of data.
Every block has a unique cryptographic hash as an identifier along with the previous block in the blockchain.
Each transaction inside a block is timestamped and added to the ledger with each block.
Each new block records all transactions and adds them to the previous one.
The data stored on Blockchain cannot be altered or removed from the blockchain as it would require alterations on every subsequent block.
Types of Blockchains to store data
Blockchain technology can store data in several different ways. It all depends on the blockchain, but some examples include:
Bitcoin: The data includes the entire history of all Bitcoin transactions.
Ethereum: The data on Ethereum Blockchain is stored using tire data structures. Ethereum makes use of this trie data structure to manage temporary and permanent data.
Corda: This is the open-source blockchain platform that doesn’t use the global broadcast. The communication between the peers can be verified without the need to download the whole data due to the use of graphs and persistent queues.
Conclusion:
Blockchain is a decentralized ledger storing data in blocks linked chronologically. Each block includes data, a timestamp, and references the previous block's hash. Nodes maintain copies, ensuring security and tamper resistance. Consensus mechanisms verify transactions before adding blocks. Bitcoin holds transaction history, Ethereum uses trie structures, and Corda focuses on peer communication. This technology enhances transparency, security, and trust across various sectors, from finance to healthcare.