How Data is Stored in Blockchains: Your Questions Answered (2024)

FAQs

How Data is Stored in Blockchains: Your Questions Answered? ›

Data Storage on a Blockchain

In a blockchain, data is stored in a decentralized manner across a network of computers or nodes where blocks are chained together. Each block stores transactions, and when a block is full, a new block is created and linked to the previous one, forming a chain.

When you add a document to a blockchain, it's assigned a unique hash. This hash, along with the previous block's hash and the transaction record, is kept inside a block. Since each block contains the previous block's hash, it creates a permanent and interconnected record.

A blockchain is “a distributed database that maintains a continuously growing list of ordered records, called blocks.” These blocks “are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

Data on a public ledger database like Ethereum or Bitcoin's blockchain is stored in a decentralized manner. Instead of being stored on a single central server, the data is distributed across a network of computers called nodes.

1.1 Blockchain ledger assumptions

All Hyperledger blocks are 1 megabyte (MB). Only hash, signature, or key data is stored in the blockchain ledger.

Transactions that are not tamper-proof: Blockchain is a tamper-proof ledger, so any transaction that can be changed or deleted cannot be stored on the blockchain. This includes transactions that contain sensitive data, such as medical records or financial information.

The main difference between blockchain and cloud computing services is how they store data. For blockchain, data is immutable, meaning it cannot be deleted or modified. For cloud computing, the data is mutable, which is the opposite and able to be changed.

Blockchain is a peer-to-peer ledger system which enables a transaction between peers without the involvement of any centralised authority. The peer-to-peer network is entirely decentralised, and to make it that way; every peer has a copy of the ledger.

When establishing a private blockchain, ensure that it's deployed in a secure, resilient infrastructure. Poor underlying technology choices for business needs and processes can lead to data security risks through their vulnerabilities. Consider business and governance risks.

Can we store private data in blockchain? ›

Yes, a blockchain can be used to store private data. Although the first uses of blockchain technology were geared towards public data, advancements have been leveraged to allow encrypted private data on blockchains.

Blockchains that specialize in storing data allow nearly all types of data: DOC, XLS, PDF, PNG, JPG, GIF, PSD, SVG, MP3, MP4, MOV, AVI and more. This means it is possible to upload basically all of your digital files onto a blockchain whether they are photos, documents or movies.

The blockchain is often visualized as a vertical stack, with blocks layered on top of each other and the first block serving as the foundation of the stack. See also: What is Blockchain Platform ? Each block in blockchain is recognized by a hash, generated by the cryptographic hash algorithm SHA256 on the block header.

A blockchain platform is a shared digital ledger that allows users to record transactions and share information securely, tamper-resistant. A distributed network of computers maintains the register, and each transaction is verified by consensus among the network participants.

MongoDB: The database that the BigchainDB team chose

BigchainDB is one of the first blockchain databases developed for general purposes. It offers powerful query functionalities and high performance, along with all the benefits of a classic blockchain to create decentralized and immutable data storage.

Each block in the bitcoin blockchain contains a summary of all the transactions in the block, using a merkle tree. A merkle tree, also known as a binary hash tree, is a data structure used for efficiently summarizing and verifying the integrity of large sets of data.

One of the key features of blockchain technology is that it is immutable. Once a block is added to the chain, it cannot be altered or deleted. This ensures that the data stored on the blockchain is secure and tamper-proof.