What is a Decentralised Database?


Since the internet, cloud storage has become very popular. But even before the world learned about cloud computing, the electronic database has been in use. It was the only way to access the stored information about an enterprise’s functioning and agenda. In a nutshell, a database is the storehouse of all organized information that an enterprise deals with. The transfer of information is mostly two ways, as the information is specific to a department or role. This way, it helped in managing the records of the company.

The importance of database did not fall, as few expected after the introduction of cloud technology. This was because although cloud storage is a lucrative option for small enterprises and also for those that need to store all information in one place. But, for large organizations, especially the ones where every piece of information is for a single task, it is not so. This had led to the introduction of many types of databases. Some of them include commercial databases, operational databases, centralized databases, personal databases, etc.

By relying on a database, a company also ensures that they do not risk mishandling information. In cloud technology, it is a third-party organization that stores the information. Hence, there is a pertinent risk of break of security and privacy. Database Systems in a company easy to monitor and secure. Let us now learn about an important type of database: the decentralized database.


What is a Decentralised Database?

Also famously known as a distributed database, this is best for the companies that are present on a multinational level. A decentralized database helps manage groups of information in different regions. Because of such possibility, the rate of data transfer matters a lot. Having a different database also helps in ensuring that even if one source becomes affected, nothing happens to the other ones. As it is self-explanatory, a decentralized database takes the help of multiple servers.

Many tech experts argue that although it enhances the reliability of the information, it may hamper security. This might seem true sometimes, as taking care of the security of so many servers and database is not a simple task. Therefore, such a type of database is not workable for many organizations. As a result, only large corporations that are scalable soon trust this database. If a business is region-specific, so it primarily headquarters in one location. But, its operations run in different locations differently, the decentralized database is the best choice. It is also good for the transactions of a highly volatile free-run capital. One good example is that of bitcoin. The reason it is easy to hold a bitcoin and transfer it is because of the decentralized database.


Hence, having a database in your enterprise depends on several factors. If security is not an enormous threat and the information you want to collect is not large scale, you can think about cloud storage. Otherwise, if the information exists on a large scale and is sensitive, it is better to establish a database. Think about the capital, scalability, and security needs of your organization first.