Bitcoin and Ethereum these cryptocurrencies have recently got very famous, and people are crazy about them. Blockchain is the reason for the success of these cryptocurrencies. Every industry is acquainted with the benefits of blockchain and is utilizing it. Since the technology revolution is expanding every day, almost everything is done digitally. Thus, it calls for the most crucial aspect, i.e., security.
Blockchain is a superhero that provides a safe
and secure gateway for transactions. As the name suggests, it is a chain of
blocks. Block refers to digital information, and the chain refers to the public
database. It is used in Healthcare, property records, smart contracts, supply
chain use, etc.
Why do we need blockchain for data storage?
The
traditional way of storing data is by using cloud storage. It has a great
demand and, thus, is prone to misuse. The major disadvantage being all the
information is centralized. Data becomes vulnerable and is not usually
encrypted during transactions.
Data is the
most critical unit in the world. Storing, processing, analyzing data is a
significant task, and new technologies are growing to make the task as easy as
possible. The centralized data makes it possible for hackers to hack data.
Thus, we need decentralized cloud data.
Decentralized
cloud data is difficult to attack and ensure more security. It reduces the cost
also.
How to use blockchain for data
storage?
There are
two methods of storing data via blockchain with On-chain and Off-chain. As the
name suggests, all the data is stored inside each block on the chain in an
on-chain way. Thus, if an attack happens, data can be restored and used. Well,
as everything has a price, this is a costly affair. It even costs a fortune at
times, because the data and network get overloaded. Thus, many storage options
used are off-chain.
Off-chain
storage doesn’t store the entire data, but the metadata alone. It has a
disadvantage, though. If any system breach happens, the data might not get
restored. Still, they are cost-efficient, which makes them the perfect option.
Why would you want to store data on
the Blockchain?
You should
only use blockchain if one or more point(s) apply to your use case
·
Tamper
·
Decentralization
· Transparency
When using a blockchain for data storage, it is important to remember that current technologies do not allow storing large amounts of information within a chain of blocks. That’s why the blockchain in this industry is used in the form of an intermediary and an account book that monitors compliance with the terms of the transaction for the provision of storage by one person to another.
This means that neither blockchain, nor smart contracts, nor cryptography protect the information in decentralized storages. In this case, the information has the same protection as in traditional storage.
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