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What is Blockchain?

Blockchain is a technology that primarily consists of records known as blocks. Each block on a chain is connected to another through a secure system called cryptography. They contain transaction data and timestamps that can help with data tracking. Blockchains are classified as decentralized systems that can be used for storing and monitoring data flows. Blockchain is also secure as it eliminates the risks of data interruptions and attacks from external parties.

5 Key Features of Blockchain

• Time reduction: Blockchain can be used in spaces with high data processing needs, such as industries, as it can reduce the excessive time that may go into verification and processing. For example, Blockchain can quickly collect all clearance and transmission data in trade industries with reliable authentication measures.
• Unchangeable transactions: The blockchain infrastructure ensures that no third party can change pre-existing stored data. New data can only be added through the creation of new blocks. It reduces the risk of any hostile takeovers or attacks by external sources.
• Reliability: Blockchain data cannot be accessed without adequate verification of all involved parties. This makes it highly reliable as operations can take place smoothly and without hassle.
• Security: The blockchain system uses cryptography for enhanced security measures to prevent data attacks and loss. It is beneficial when a node failure occurs, or a vulnerability arises. Involved parties are also provided with a copy of a chain they can use to make modifications or write to.
• Decentralized: Blockchain, similar to immutable database, falls under decentralized systems, and specific rules are set for how each node transmits information. There is no presence of a central supervising authority for monitoring these processes.

Application of Blockchain

Due to its secure and highly reliable nature, Blockchain is often utilized in areas where there is a need for high cyber security. Blockchain technology uses advanced cryptography and prevents access to unauthorized parties without strict authorization and verification. Because of its decentralized approach, Blockchain is applicable across locations, with access to copies for each involved party. Hence, when it comes to cyber security for data storage, blockchain technology is often put in place to prevent data loss and malicious attacks and to improve accessibility in different spaces.

Centralized Database System

A centralized database refers to a singular data storage and transmission system. It is usually stored at a fixed location, and all additions, deletions, and modifications occur at the same site. Centralized databases also rely on a steady internet connection to conduct all operations smoothly.

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4 Key Features of a Centralized Database

• High data integrity: Because centralized databases are often stored at a single location, achieving higher accuracy with all data processes is possible. Higher integrity is available for all data stored, and it is also convenient to coordinate all data points in one place. Furthermore, for better data categorization or synchronization, integrating ⦁ data diff systems can help analyze with lesser effort.
• Low redundancy: Centralized databases have a better chance of avoiding redundancy as data is stored on one system itself. There are minimized chances of duplication taking place or data going stale.
• Availability of stronger security: Because only one system is involved, it becomes more convenient to invest in efficient security measures for the database. Extensive authentication measures can be implemented to prevent unauthorized users from accessing the system.
• Cost-effective: Since a centralized database only uses a singular system, it is more cost-effective as there are low overheads for maintenance, operations, management, etc. Organizations can implement this database without application of extensive costs.

Application of a Centralized Database

Centralized databases are usually applied in spaces where high volumes of data storage are needed, and an instant overview of data is possible. It is used in organizations that run multidimensional services and must maintain data about employees, services, sales, and other work. Data becomes accessible to all managerial staff as and when needed.

Centralized databases are also used in areas where enterprises want to save up extensive costs that will go into data storage. Since these are more convenient to apply and access from one destination, organizations prefer to set up centralized databases for quick data overviews cost-effectively.

Endnote

Blockchain and centralized database systems are both reliable options to meet different data storage and transfer needs. They are both technologies that can be applied in places with high data needs and security at all stages. Depending on the services of an organization, the location, the data accessibility needs, and more, they can choose to put in place either one for effective and convenient data storage operations.

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• Source: Plato Data Intelligence: Platodata.ai