Connect with us

#Explained

Explained: Blockchain v/s Traditional Database

Published

on

Blockchain Technology is basically nothing but a distributed database, operating and stored on different nodes of the network throughout the world.

The primary factors differentiating the Blockchain Technology with that of the traditional databases

 

Opening remarks

Bitcoin was the first cryptocurrency which used the Distributed Ledger Technology. The Blockchain Technology is like a hot selling cake due to its transparent and secure features. This widespread adoption is due to the fact that more and more organizations are in a need for a full proof transparent database. Blockchain Technology is basically nothing but a distributed database, operating and stored on different nodes of the network throughout the world. Let us examine the factors which differentiate between the Blockchain and the Centralized database systems.

 

Traditional databases

The traditional database which is primarily employed by the World Wide Web, it can be clearly understood that it uses a client-server model where all the database is stored in the centralized server and the clients throughout the world request for that data. The data stored on a centralized server cannot be manipulated by the client and is under the control of a single authority of the owner only, hence updations or improvisations suggested from the client side is not reflected on the database. The centralized nature of the traditional databases shoves full responsibility on its owners for its tampering, losses, or misuse. Any updation that is done in the centralized server is reflected on its clients over the world.

 

Blockchain database

The Blockchain Technology or the Distributed Ledger Technology is observed to be applied readily by the cryptocurrency domain but it is not limited to it. The Blockchain Technology finds its application in many other domains too. Contrary to the Centralised database systems, in the Blockchain Technology, the data is stored in a distributed fashion among the participants of the network. It is this distributed nature of the database which makes the technology so powerful. As the data is distributed among all the nodes of the network, there is no room for data tampering, also the intuitive application of cryptography in the network adds on to the security. In this case, the client itself has the complete authority to make all the updations in the database which results in higher accuracy. The only drawback of the decentralized database system is that one can find no help desk, to turn to, in case of data forfeits or losses, as the authority is shared among everyone equally.

Also, the immutable nature of the Blockchain Technology adds on to a number of characteristics of the resulting database. As the data is immutable, once any data is stored on a blockchain it remains there forever. Any particular transaction on the Blockchain can be traced by using this attribute. The prime part to be noted here is that there is absolutely no centralized judiciary or any third party mediator for the creation and administration of the database.

 

Access time issues

Safely securing all the database on a blockchain network is achieved only through its distributed nature and Cryptography. In recent days it has been observed that the access time of the data in a centralized database is way faster than the access time of a data in a blockchain based database, which means that for a secured database, some speed needs to be sacrificed, according to the law of conservation of energy. Blockchain Technology has absolutely no advantage over the Centralized database management systems if there is no scope for secrecy and transparency.

 

Signing off

When deeply thought in simple lights, one must be very clear about their specific requirements and their willingness to sacrifice an attribute for another. If one needs no privacy for the data and cannot compromise on the speed of the data access then centralized data management systems are the preferred one. On the other side of the coin if confidentiality is the key obligation then the blockchain-based solutions are best suited for such business models.

In a nutshell, the respective type of database systems, carry with themselves their own suite of pros and cons, and its applications purely depend on the requirements of the time. Making objective decisions by not getting swayed by the hype or by not getting defeaned by the noise is invariably challenging due to peer pressures.

Continue Reading
Advertisement Cryptocurrency & Blockchain Domain Names
2 Comments

2 Comments

  1. Pingback: Explained: Blockchain v/s Traditional Database – The Coinage Times

  2. renecorbitt7777

    July 5, 2018 at 2:39 am

    What’s up to all, the contents present at this site are in fact remarkable for people knowledge, well, keep up the nice work fellows.

Leave a Reply

Your e-mail address will not be published. Required fields are marked *

#Explained

IEO replacing ICO: Initial Exchange Offering Explained.

Published

on

Initial Exchange Offering (IEO) is a fundraising procedure in which developers create coins for their project and send them to crypto exchanges for selling.

Initial Exchange Offering ( IEO ) is a fundraising procedure in which developers create coins for their projects and send them to cryptocurrency exchanges for selling to cryptocurrency investors and traders.

 

Initial Exchange Offering:

Initial Exchange Offering is usually an agreement between developers and cryptocurrency exchanges, with some of the conditions that are common in the ICOs in the fundraising model. Initial Exchange Offering is an abbreviation for the “initial offer of exchange” – a fundraising procedure in which the exchange takes place on behalf of the token issuers.

 

Although IEO is a relatively new phenomenon in the cryptocurrency industry, it is clear that securities trading is very similar – it can be estimated as a sign of the crypto’s maturity. From Huobi to Okex and Bitmax to Bittrex, the number of cryptocurrency exchanges offering the sale of Initial Exchange Offerings has increased.

 

In order to maintain trust with its customers, the exchange must carry out a comprehensive evaluation of the project before the IEO is launched.

 

IEO replacing ICO:

While in the ICO, it is the developer’s business to ensure that the intelligent contract is correct and that everything goes according to plan, in the IEO model, a third party, such as a cryptocurrency exchange, fulfills the same obligations.

 

Anyone who wants to participate in the IEO token sale must create an account on the exchange platform and fund their portfolio so that they can be willing to buy the token. While digital exchanges were only a platform for cryptocurrencies, the Initial Exchange Offering has introduced a new, value-added business model.

 

Since the Initial Exchange Offering is usually carried out on cryptocurrency exchange, some potential investors may be excluded from the possibility of creating a new account and passing through the verification procedure, which usually takes several days.

 

With IEOs, a cryptocurrency ( not the project developer himself ) acts as a counterpart, facilitating the fundraising process. While the exchanges continue to charge high fees for leading an IEO, the team behind the pawn can shift its focus from marketing and fundraising to the development of its project.

 

The initial offer of Exchange introduces an intermediary to the decentralized fundraising model, which gives cryptocurrencies a strong sense of trust as they participate. You can invest in IEOs by simply having an account on a cryptocurrency exchange. By hosting the IEO on their respective exchange platforms, cryptocurrency exchanges directly confirm the credibility and reliability of the project. For IEOs, token issuers do not have to worry, as the exchange manages the KYC – AML process is also managed by cryptocurrency.

Continue Reading

#Explained

Analysis: Decentralization is the future

Published

on

decentralization is the basis of bitcoin blockchain. A development that has threatened to dig up decentralization is the creation of integrated circuits.

In 2008, when Satoshi Nakamoto wrote down the famous white paper in which he proposed a decentralized financial system, he did so in the context of crumbling banks and governments, which as a centralized institution, caused an economic collapse due to poor decision – making and management. Decentralization is the basis on which the entire Bitcoin blockchain is based, and that is why Bitcoin was created primarily to provide an alternative to the central authorities that operate our current global monetary system.

Today, the concept is challenged by the uncontrolled growth of Bitcoin mining – giants such as Bitmain, a Chinese mining company that continues to generate absurd profits and continues to monopolize the Bitcoin network in pursuit of industry dominance.

 

Ethereum Blockchain

The cryptocurrency economy has come to a conclusion – at least for the foreseeable future – Ether will continue to feed the ICOs and lay the foundations for distributed applications. Called Ethereum’s Proposals for Improvement ( EIPs ), they allow for massive participation in decisions that could radically change the future of the network. However, the use of EIPs Ethereum tries to embody the principle of the blockchain technology, namely centralization leads to errors and inefficiencies, while the network, with the right technology, can make better decisions and work more effectively. So, when companies such as Amazon and Chile’s Energy Authority support Ethereum, they do so in a project that advocates – and through EIPs – real practice decentralization.

 

The need of Decentralization:

Where buildings such as capitalism, money, and democracy need new codes, new software, updated smart contracts, better AI and a more united kingdom, full of corporate social responsibility, equal opportunities, and prosperity shared with all. It is not only software decentralization, but it is also the shift of human values to a new way of thinking about exchanges, energy and the shared future of humanity.

The blockchain technology, which offers an alternative to existing trading, governance and finance systems, has the potential to disrupt the industry and create new and exciting opportunities for billions around the world. A development that has threatened to dig up decentralization is the creation of integrated circuits or ASICs for applications. Even more complicated and challenging to decentralize is the rapidly changing world of hardware and the fact that a large technology company now produces most ASICs on the market.

While many Bitcoin advocates see the blockchain as nothing more than competition for existing payment methods or gold, others believe that the blockchain technology is the harbinger of things the world has never seen before.
Bitcoin’s market share has been declining slowly in recent years, and although many believe that bitcoin will continue to grow, there is a rapid rise in other parts of the blockchain ecosystem. When decentralized blockchain protocols begin to break down the central web services that dominate the current internet, we will begin to see real sovereignty on the internet.

 

The future of Decentralization:

Recently, blockchains have become the focus of attention as the first technology to use decentralized device networks. With the promise of full ownership and monetization of their data, blockchains are seemingly convincing alternatives to older third-party data farms. While blockchains use the increasing movement of increasingly powerful personal devices, they have a relatively limited use case and do not fully exploit the potential of paradigm shifts.

This is decentralization, which is a decisive factor in cryptocurrency and blockchain technology in general.
In addition to the major cases of well – known use, there are examples of massive companies that eliminate a “one – point failure” in their closed systems, for governments that approve university degrees. Secondly, governments have historically been serving exchanges with asset seizures, which have paralyzed merchants who hold large amounts of cryptocurrency in the market. If decentralized exchanges become a real reality, the regulatory war will become even more complex for legislators: their current strategy is to target exchanges that operate under their jurisdiction.

Blockchain technology can provide a new way of confirming identity, ways of moving data faster and cheaper, easier transactions such as payments, claims, and data sharing.

Continue Reading

#Explained

Brief: What are ERC-721 Tokens?

Published

on

ERC-721 defines features that give it some compatibility with the ERC20 standard. Similar to it, ERC-721 standard has opened the door to new smart contract

Ethereum tokens became popular in 2016 – 2017 when they began to be widely used by ICOs to represent usefulness or ownership. Later, in 2017, Ethereum tokens began to be used to represent the assets of the game, such as in the famous cryptocurrencies. While the ERC-20 tokens dominate the ethereal part of the market, for the time being, more and more projects are expected to shift to the new and improved standards.

 

ERC-721 Tokens

Application developers can integrate ERC-721 tokens into their platforms, but in order to improve such development, public API and public network nodes can make non – fungible blockchains available to most mobile and web developers – most of them use JavaScript.

 

ERC-721 tokens can be used in any exchange, but their value is due to the uniqueness and rarity of each token. ERC-721 defines some features that give it some compatibility with the ERC20 standard. Similar to the ERC20, the newly proposed ERC-721 standard has opened the door to new smart contracts that act as un-mouldable items.

 

For example, a virtual work of art in which the work of art is symbolic and the property of the token directly reflects the property of the work, stored in the blockchain.

 

Like many others, the ERC-721 is a free open standard, describing how to build the tradable Ethereum tokens on the blockchain. While the ERC – 20 runners are fungible, which means that they can be exchanged between themselves, the ERC-721 standards has been used for nonfunctional or “unique” items.

 

The nonfunctional tokens allow you to detail more about the attributes that make them special – well beyond the name, balance, supply of tokens and symbols. The nonfunctional runners have not been accepted as quickly as some lawyers hoped, partly because the ERC-721 protocol is so new. There are concerns about the fact that the use of nonfunctional tokens could eventually become fragmented, with different standards and different certifications.

 

Fungibility is the interchangeability of goods or assets with other single goods or assets of the same type.
When you purchase ERC – 20 tokens, your property rights will be written in smart contracts.

 

In fact, the idea of having ownership in a decentral blockchain makes it particularly suitable for collectors – there is no doubt about the rarity of a particular collection item – there is ( theoretically ) no central control over who owns what, there is no doubt there. However, by framing ERC-721 like non-moldable tokens rather than digital collectors, the standard is very much to track and transfer property.

 

As more ERC-721 contracts implement more metadata, the question of where images live is becoming important for the nature of applications and decentralized markets.

Continue Reading

Keep up with Bitcoin & Blockchain Technology Trends

Simply enter your email address in the box below and sign up for emails from Coinnounce regarding trending cryptocurrency, bitcoin & blockchain topics and offers.

This information will never be shared with third parties.