Choose Blockchain for Data Storage – Here’s Why

• Blockchain technology offers solutions for data management and can enhance both security and efficiency.
• As most traditional databases are centralized, these can lead to vulnerabilities and inefficiencies.
• Some early adopters are incorporating blockchain into their supply chains.

By now, most of us have stumbled upon the term Blockchain or “Web3”. This was more than likely in the context of everyone’s favorite cryptocurrency, Bitcoin. Unbeknownst to most, as the technology has quietly evolved, it has expanded to far greater applications than simply recording “John sent Jane $100.” Limiting blockchain technology to only that context is like selling the internet as a wonderful, magical, digital bank book.

Blockchain applications extend across all sectors worldwide. From multimedia files like images and videos to documents and digital proofs of luxury goods, anything can be securely stored on-chain.

Now that we have the working parts in order, you can begin to imagine what we can do with blockchain technology. It is not just possible but is currently being applied to all business sectors worldwide. Major corporations, including Fortune 500 companies, recognize this potential; for instance, BMW has integrated blockchain  to enhance supply chain transparency.

Any kind of data can be kept on-chain: images, videos, documents, songs, tickets, a verified digital representation of your $10,000 Louis Vuitton purse, you name it. Fortune 500 companies are opening up entire blockchain departments to ensure they’re ahead of the curve. If BMW is using blockchains for supply chain management, I’d like to believe it’s a worthwhile exploration for anybody

But how do blockchains improve upon conventional data storage solutions, and why would anyone choose to use them over what’s been used for decades?

Because the internet is unreliable, unsecure, and impossibly difficult to audit.

Identity and Custody

Our current system is abysmal when it comes to identity verification. For instance, how often do you hear of people’s Facebook accounts being “hacked?” “BUT MY PASSWORD WAS 10 CHARACTERS LONG HOW DID THEY FIGURE THAT OUT?!” is the typical response when my aunties’ accounts start posting links to NSFW websites or begging other family members for money. 

On the blockchain, every user has their own personal address. Without your address’s specific 64 character private key, not a single soul can impersonate you. This alone adds a massive security layer to the internet as a whole, not to mention the whole cryptography component. Not only do you have your own identifier, but every asset you interact with also does. 

If Facebook was blockchain-based, you could prove that your profile picture was added to your account by your account and is, in fact, the original image. This would likely have led to Zuckerberg being laughed out of court trying to defend his use of his customer’s private photos in FB advertising rather than taking as long as it did.

On-Chain Security

Have you ever had a file miraculously disappear? Everything on a blockchain is permanent, transparent, and immutable. This means it is what it is forever, and anybody in the world can see it. If it is intended to be changed, it is simple to confirm who, when, and what was involved in that interaction. 

Each interaction is transparent and verifiable by anyone, which significantly simplifies the audit processes. This robust security framework could mitigate numerous cyber threats that are incredibly costly and pose significant threats to world governments. 

By no means am I suggesting that it is completely impossible to seize someone’s accounts in Web3, but the security is a massive improvement over what most people have available to them today. Humans will always be a weak link in any security system, and the same is true in this case.

Long story short, don’t save your private keys on a digital device because, yes, people can see what you have stored on your MacBook’s notepad if it’s connected to the internet. Pen and paper are always your best friend in this case.

Reliability and Decentralization

Most traditional databases are centralized, which can lead to vulnerabilities and inefficiencies.

Keeping with the Facebook example, every bit of information on the platform is stored on hardware owned and operated by Facebook. It’s incredibly centralized and poorly distributed on a global scale.

Compare this to many blockchains, where thousands of household validators exist in each nation around the globe. Every single one of these contributes to the stability of the network. If one goes down, no big deal. If 10 crash, no big deal. Heck, even if 100 of these validators ceased to exist, the end user wouldn’t even notice. This is the power of decentralized networks. 

In contrast, blockchain operates on a decentralized network of validators distributed globally, enhancing the network’s resilience and uptime. Even if several nodes fail, the network remains operational without impacting the end user.

Alright, rant over. In summary, if you haven’t done any digging into how your business or personal enterprise can benefit from leveraging blockchain technology for data management. It solves many issues inherent in publicly available storage solutions and can also improve operational and capital efficiency to a measurable extent.