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Blockchain and Database: Are they the same?

  • August 24, 2021
  • 4 min read
Blockchain and Database: Are they the same?

Many people who are into crypto investing or blockchain technology still wonder what is the relation between blockchain and database? Are you the one or a newbie who wants to understand the same? Then this might be the right place for you to resolve the confusion and clear the doubts.

Blockchain and database may sound similar but they are quite different from each other. A blockchain is way more than a database. So, in this article, we will cover a detailed comparison of the two starting with their small introduction.



It is a dispersed ledger technology that enables sharing of information with the help of a consensus algorithm. It involves a set of peers who build a unified and decentralised network. In addition, blockchain does not require a centralised authority which makes it more preferable and trustworthy when compared to other networks. Cryptocurrencies like Bitcoin and Litecoin include their own blockchain algorithms for keeping records of transactions. So if you are planning to buy bitcoin or invest in litecoin then you must be aware of blockchain technology used by several crypto exchanges in India.

After the overview of blockchain technology, let us come to the database.



It also has several features including the capability of reading and writing. But only the users with access can read or write in the database. It also exhibits multiple copies of similar data and their history. Unlike blockchains, a database involves centralized ledgers that are run by administrators. So, all the processes are done with the help of a trusted and centralized authority who can manage the servers. The best-suited example for database management is the banking industry. They mainly use databases to carry out their activities.

Now, you all must have got an idea about what blockchains and databases are. So, it’s time to know the key differences between them to better grasp the concepts and their functionality.


The difference between blockchain and database

There are majorly 4 distinctions which make them unique as well as different from each other.


  • Structural difference

A database simply is based on a client-server network. It requires an administrator or central authority to work or give access to others. Whereas, a blockchain is an advanced form of the database as it involves a digital ledger. It makes the records public and only requires a good internet connection with cryptography and eradicates the need for any intermediary.

In the case of databases, the information can be changed, deleted or modified as per the will of the administrator. But when it comes to blockchains, all the data is stored in the form of blocks. This makes it impossible to modify or delete any information which has been uploaded to the network. In addition, unalterable data is the main feature of blockchain which makes it more popular and useful.


  • Decentralized characteristics

A distributed database is beneficial for organisations wherein there are no duplicate records because of the trust one user has in another. It means they have faith in each other that there will be no repetition of data in the database. Thus, the whole process solely depends upon the trust factor.

But in blockchain, there is nothing like trust as the transactions are validated by consensus from other peer nodes within the same blockchain. This feature tends to make the procedure more reliable and secure.


  • Functional characteristics

In a traditional database, a user can perform mainly 4 functions of data which are Create, Read, Update and Delete (CRUD).

On the other hand, blockchain is designed quite differently to maintain the information entered into it. Here, the user can add more information to the existing one simply in the way of adding blocks. All of the previous data is securely stored and no alterations can be done in the blockchain.


  • Cost and expenditure

Blockchain technology has provided an upgraded and more safe solution to a traditional database. Also, it has removed complexity in the transaction process along with the set-up of a self-distributed database. This results in cutting costs and a reduction in prices due to collective trade.



They both have their advantages and disadvantages. You can choose between them depending upon your requirements and convenience. Also, you can check some of the leading crypto exchange websites such as WazirX, Coinbase etc. it will help you to explore the current price of your favourable data management cryptocurrency.