Blockchain is a revolutionary technology of our time, which creates a safe and transparent system to store data. But have you ever wondered, where is the blockchain data stored?
When we store any data on our laptop or our smartphones, we are aware that the data is being stored on a physical device. But where is the data stored on a blockchain?
Well, we can help with the questions that you may have regarding data being stored on a Blockchain. Read on to find out the exact procedure behind data storage.
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Where Is Data Stored In a Blockchain?
Well before getting to the question at hand, let us figure out what blockchain technology is.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
– Don & Alex Tapscott, authors Blockchain Revolution (2016).
To put it simply, it is a time-stamped series of immutable record of data that is managed by cluster of computers that is decentralized and not owned by any single authority.
Data stored on a blockchain is usually extremely seure because data on a blockchain cannot be tampered with. It is also public and accessible to all the users, so as to maintain transparency.
The data that is to be stored on a blockchain, is actually customised into the form of transactions, to be able to store it.
In other cases, when the blockchain does not allow for data to be appended in a transaction and stored, the data is stored in tiny amounts on the chain by using addresses.
If someone needs to save data, they can just encode it and use it as an address to send a transaction to. By doing so, the data is stored in the blockchain. The data is by default encoded into the receiving address.
However, this prevents the amount of data to be more than the capacity of the blockchains address size (which is tiny). The problem here of storing data on a blockchain is the amount of data you can store and also the hefty transaction fee you need to pay.
As a result of this transparent and immutable ledger that a blockchain maintains. more people are deciding to store data on the blockchain.
The data is way more secure on a blockchain than if it is stored on the internet. It is much more difficult to breach a blockchain and manipulate any sort of data.
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