Blockchain vs. database: where’s the difference

Blockchain vs. database: where’s the difference

The security of your data is one of the key aspects of the cybersecurity in general. However, it seems like the question gained the attention with the current news in the world of cryptocurrencies. Many people still can’t get a grip on how this new currency world works and most importantly, who guarantees the safety of transactions.

One of the cornerstones of bitcoin is a blockchain, a specialized data storage that keeps the records of all the transactions ever made within the network of users. In case you were wondering how a blockchain works and what’s the difference between a blockchain and database, here’s our view on the matter.

Blockchain: more than a database?

The fundamental distinction between a blockchain and database is in the architecture. While the database is designed to rely on the structure of a user, blockchain favors a decentralized approach to data sharing.

When a user of the World Wide Web wants to share a file with another person on the same web, they are creating a channel on the server to be able to share, download, and change the file. Every time you send a file or upload a file or manipulate the data in some other way, the information is going through a server controlled by the provider. That means you need an authorization that comes with your account to be able to manipulate your data. In other words, you depend on someone else’s permission, which means that you can easily be in a position to lose your data because you’re not in control of them.

On the other hand, a blockchain technology is using a decentralized control to enable the users on the same network to share data. Whenever someone sends you bitcoins, for example, other users in the system knows that the transaction has been made. That keeps the network open and the process transparent. Although you might think that the security of your data is compromised in the course of using blockchain technology, the fact is that the security level is much higher than in the regular data sharing.

The main difference

Both technologies have their advantages and disadvantages, but in regards to the safety of the data exchange process, blockchain is a better option. With the decentralized control, you have the same level of authority as anybody else in the network which is a huge difference compared to the database. You’re no longer dependent on an administrator who controls the access to the files. Instead, you have an equal treatment as anyone who is using the same network.…

Taking a look at the bitcoin transaction process

Taking a look at the bitcoin transaction process

Bitcoin it the hottest theme on the market right now. With its consistent growth, this cryptocurrency gives the investors in love with high risks a great opportunity to build their wealth. And since the thing is not likely to stop anytime soon, there are a series of questions related to the specifics of every aspect of the bitcoin transaction.

Today, we want to share some thoughts on how the transaction works, and what can you expect from it.

Bitcoin transactions: a road to the imaginary

Let’s be clear on one thing: Bitcoin is not like any other currency. There’s no sign of the physical form of the cryptocurrency, only the digital trace of the transaction made in any part of the world. The premise on which the cryptocurrency revolves is aligned with the thought of letting the market of currency holders and makers decide how many bitcoins will be produced, purchased, and sold.

Now, the first thing that boggles someone’s mind (especially if they’ve not been on the market for a long time) is how the bitcoins can be purchased. There is a wallet, your digital depository, which trace the transactions you make in time. The digital wallet keeps the information about how many bitcoins you owned and sent to other users. The difference between the traditional portfolios (found on PayPal, for example) and a bitcoin wallet is that everyone involved in the bitcoin share can see the transaction you’ve made. That means the total transparency of the process, which is one of the core premises installed in the philosophy of a bitcoin.

So, there are no bitcoins? 

It sounds odd, but yes, there are no actual bitcoins. The only thing that you can hold on to in a bitcoin transaction is the transaction itself. That’s the integral aspect of a bitcoin philosophy since the currency is digitalized and used primarily online.

The transactions made between the bitcoin network of users are stored on a blockchain. It functions not only as a vault but also as a kind of disk space, keeping the records of all the transactions made in the network. The deal is happening between different IP addresses, not between the users itself. The records show the data related to the addresses, which means that no actual file can be downloaded as a proof of a transaction.

The transaction consists of three parts. One, the input information. That’s the information about the source of bitcoins that are about to be shared. For example, Mike received bitcoins from George; input data are showing George’s address as the source of bitcoins in use.

The other part of the transaction is the amount. It’s expressed in numbers and related the actual balance deducted from the sender’s account. Finally, the output information reveals to whom the amount is going to. Again, it’s expressed in the form of address.…

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