Blockchain is envisaged as one of the most overly-hyped technologies of this era, and the number of recent searches regarding this technology on the web has skyrocketed in the last few years. People are willing to learn the potential implications of Blockchain. On the flip side, enterprises are figuring out what are the potential benefits of using Blockchain for data storage.
Many crypto enthusiasts strongly believe blockchain will revolutionize the financial landscape completely. Though some critics say this statement is exaggerated. the potential of this technology, can revolutionize many businesses and pave the way for the new era of Fintech. As the popularity of blockchain grows, many Fintech startups are harnessing it. Even in some countries, bitcoin transactions exceed PayPal.
before investing in any blockchain-driven product you have to take into account many things. First and foremost, educate yourself about blockchain technology. implementing it earlier will make you highly competitive in your industry. For instance, if you are working in the retail industry then Blockchain best suits the supply chain execution. Besides, blockchain has countless applications in different industries. That’s why many large-scale organizations like IBM, Microsoft, and Amazon are working on the convergence of blockchain with big data, IoT, machine learning, and deep learning.
Now I’ll head over to our main topic: how blockchain is feasible for data storage.
Blockchain came into existence in 2008, but it gains public traction in the last few couple of years. Its popularity reached an all-time high in 2017 when it gave a staggering return to bitcoin investors. Data you stored on the blockchain network is encrypted, duplicated, and distributed across the network. Once the data is stored in the blockchain it cannot be modified or breached therefore it provides a tamper-proof way of data storage. If an individual attempt to tamper with the data, a new hash value is generated which indicates that someone has modified it earlier.
Benefits of Using Blockchain for Data Storage
Some crypto aficionado strongly believes that the potential impact of blockchain would be more on the world than on businesses. According to a study conducted by Gartner, blockchain has the ability to transform businesses, society, and companies.
But it is strongly recommended to prepare a feasibility model before implementing blockchain-driven solutions in your business. It doesn’t mean you should stay away from trying blockchain-based data storage.
From a technical standpoint, using the distributive ledger technology to store data is highly cost-effective than the cloud-based data storage such as AWS or Microsoft Azure. This is due to the fact that distributive storage companies don’t pay the hefty cost of acquiring and managing a gigantic server. Besides, there is a huge saving of upfront cost in case we use the blockchain database to host our business app instead of on-premise hosting or cloud-based hosting.
- Less Vulnerable to Hacking
Technically, using blockchain to store our data is less prone to hacking or data breach because. In order to hack a blockchain network, an individual has to acquire a 51% majority, which is practically infeasible for anyone because the cost associated with it is too high. Thus, we can say that hacking a blockchain database is very time-consuming, costly, and more complicated than centralized cloud-based storage.
Even if the hacker manages to gain access to a single node, he can’t access the actual data because the data stored in the blockchain is cryptographically protected.
- Automation of Repetitive Task Using Smart Contracts
One of the most appealing applications of blockchain is its ability to remove it reliant on an intermediary and paves the way for a trustless environment. This is practically possible because blockchain stored all the data in a distributive ledger which is publicly accessible to all the participants of the blockchain network. Therefore, data stored in the blockchain is transparent and widely accessible.
Blockchain stores the contractual data between the two peers in an encoded form known as a smart contract. Therefore, blockchain can disrupt services business like a legal expert and real-estate brokerage. It is pertinent to know smart contracts coders aren’t legal experts, so the encoded terms of trade between two peers cannot be used in the supreme court.
Blockchain-based data storage is still in a rudimentary stage, but many strongly believe blockchain technology is suitable for storing a large volume of data, but the scalability is the obstacle in the way of blockchain for data storage. though strenuous efforts have been done by the blockchain developers to resolve this issue, it still needs to be fine-tuned for data storage.