• They are usually managed by one or more administrators, allowing them to make modifications to the data within.
• This system is perfect for recorded information which needs to be updated or altered from time to time. The problem is that this can lead to certain issues involving data corruption and misinformation.
• Stored on complex centralized servers, during server failure or a malicious attack (“hack”) on their servers, tons of data can be lost or needed to be recreated, costing companies bundles of time and money
• Has built-in immutability.
• The decentralized network is immune to single-point-of-failure.
• While high-levels of encryption and security can be implemented in both systems, blockchain is revered as one of the most secure systems developed to date.
Centralized and traditional datasets have had many more years of innovation to help with data warehousing and load-balancing. Meanwhile, blockchain data is still in its infancy and cannot yet handle the speeds we are all accustomed to. Even still, the wave of the future is leaning toward the decentralization of data, making blockchain technology a preferred upgrade for many of the world’s largest businesses.
Blockchain is, in the simplest of terms, a time-stamped series of immutable records of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data are secured and bound to each other using cryptographic principles.
The blockchain network has no central authority — it is the very definition of a democratized system. Since it is a shared and immutable ledger, the information in it is open for anyone and everyone to see. Hence, anything that is built on the blockchain is, by its very nature, transparent and everyone involved is accountable for their actions.
Traditional Datasets vs
Potential of Blockchain
Blockchain is currently one of the most widely discussed and hyped technologies. There are only a few industries that are not either excited or worried about the concept, as use cases, proof-of-concepts and fully fledged businesses based on blockchain principles are emerging at an increasing pace. It has the potential to disrupt existing but also to enable new business models. The most viable and profitable industries for the blockchain implementations are the public sector, technology, media & telecom industry and financial services.
Blockchain has been deemed the “Internet 3.0” or “Web 3.0” because of its potential to revolutionize the way we use everyday technology. The security of an immutable public ledger, along with the speed and transparency of a distributed and decentralized network of transactions, make blockchain an incredible upgrade to the current system.
Multiple governments have published reports on the potential implications of blockchain, and the past two years alone have seen more than half a million new publications on blockchain and 3.7 million Google search results for blockchain. Most tellingly, large investments in blockchain are being made, while venture-capital funding for blockchain start-ups has been consistently growing, reaching an impressive $1 billion in 2017. Leading technology players are also investing heavily in blockchain: IBM has more than 1,000 staff members and $200 million invested in the blockchain-powered Internet of Things (IoT). According to the International Data Corporation, worldwide spending on blockchain development is forecasted to grow by 88% from $1.5 billion in 2018 to $2.9 billion by the end of this year. Total spending is expected to further rise by 76% each year to reach $14.4 billion by 2022.