Can we use blockchain technology in databases?

Abhishek Pratap Singh
4 min readJan 18, 2023

Yes, we can!!!

Blockchain technology, first developed to use in cryptocurrency, is now being explored for use in databases. The key feature of blockchain technology is its ability to create a decentralized and distributed system, where each node in the network has a copy of the database. This means that there is no single point of failure and the database is more resilient to attacks.

Using blockchain technology in databases also allows for increased security and transparency, as each transaction is recorded and stored in a tamper-proof manner. This makes it useful for applications such as supply chain management, where transparency and traceability are important.

Another advantage of using blockchain technology in databases is the ability to create smart contracts, which are self-executing contracts with the terms of the agreement written into the code. This allows for automatic execution of transactions and can greatly increase efficiency in business processes.

However, it should be noted that blockchain technology is still in its early stages of development for database usage and its scalability, security and privacy concerns need to be addressed before it becomes widely adopted.

Implementation of blockchain in the database-

Blockchain can be implemented in a database by creating a separate blockchain ledger for the database and linking it to the main blockchain network. This ledger would contain all of the transactions and changes made to the database, and would be stored on multiple nodes in the network to ensure immutability and decentralization. The database itself would then be updated based on the information stored in the blockchain ledger. This approach can increase security and transparency, as well as enable the use of smart contracts to automate certain actions within the database.

Blockchain technology can be implemented in databases in a few different ways-

One way is to use a distributed database system that uses blockchain as the underlying data structure. This would involve creating a network of nodes, each of which stores a copy of the database and is connected to the others through a blockchain protocol. Each node would validate transactions and update the database in a decentralized and secure manner.

Another way to implement blockchain in a database is to use a hybrid approach, where a traditional centralized database is combined with a blockchain system. In this case, the centralized database would handle the majority of the data storage and management tasks, while the blockchain would be used to secure and validate transactions. This approach would allow for faster and more efficient transaction processing, while still providing the security and immutability of a blockchain.

A third way is to use a blockchain-based database management system (DBMS) built specifically for the purpose of storing data on a blockchain network. This would allow for direct management of the data stored on the blockchain network without any need for a centralized DBMS.

Advantages of implementing the Blockchain in database-

There are several advantages of implementing blockchain technology in a database:

  1. Security: Blockchain technology is inherently secure due to its decentralized and distributed nature, which makes it difficult for hackers to tamper with the data stored in the database.
  2. Immutability: Once data is stored on a blockchain, it cannot be altered, deleted or tampered with, providing a tamper-proof record of all transactions.
  3. Decentralization: In a traditional centralized database, there is a single point of control and failure. With a blockchain-based database, control is distributed among all the nodes in the network, making it more resilient and less vulnerable to attack.
  4. Transparency: Blockchain technology allows for transparency in the way data is stored and accessed, as all the nodes in the network have a copy of the database and all the transactions are recorded in a public ledger.
  5. Cost efficiency: With a blockchain-based database, intermediaries are not needed, thus reducing transaction costs and increasing efficiency.
  6. Interoperability: Blockchain technology enables easy sharing of data between different systems and organizations without the need for a central authority.
  7. Traceability: Blockchain allows for the traceability of all the transactions, providing a complete history of the data, which is useful in many industries such as supply chain management, finance, and insurance.
  8. Smart Contracts: With blockchain, it is possible to create smart contracts that automatically execute when certain conditions are met, enabling automated processes and reducing human intervention.

Please note that the implementation of blockchain in a database may require additional resources and expertise, and is not suitable for all use cases. It also depends on the requirements, size, and nature of the data.

Follow Abhishek Pratap Singh for more, Have a great day!



Abhishek Pratap Singh

Software Engineer || Co- Founder || B-Plan contest finalist at IIT Kharagpur || 1st Rank on SQL- HackerRank