Blockchain is trending these days. When it comes to use Blockchain for the development, the usual questions that come in the developer's mind are:
- What are the available methods for storing data on Blockchain?
- Which method should I choose?
- What are the costs for data storage on Blockchain?
In this article, you will get answers to all of the above questions.
What are available methods for storing data on Blockchain?
The biggest reason of use of blockchain for data storage is immutability. The data stored once on the blockchain can never be edited or deleted. There are several methods to store data in decentralized way using blockchain technology, however the most commonly used methods are as follows.
- Smart Contracts: Smart contracts are used to store very small amount of text data like Metadata or NFTs or Crypto Tokens and their balances. There are several formats predefined in the smart contracts in which data can be stored. Different public chain offer storage of data through smart contracts written in different programing languages. The most commonly used programing languages for writing smart contracts are Solidity and Rust.
- Inter Planetary File System (IPFS): This system is used to store large data like documents, pictures, videos etc. IPFS storage supports storage of files as well as metadata. Sometimes, the combination of IPFS and Smart Contract is also used to manage the better security and immutability. One of the best example of such case is NFT. In most of the NFTs, the image is stored in IPFS and it's metadata is stored in smart contract.
- Hyper Ledger: This is a special use case of data storage on blockchain. The above mentioned two methods are used to store data on public blockchains, however, Hyperledger method is used to store data on private blockchain. Hyperledger includes organizations and the data stored for each organization can be combined at the time of reading the stored data. Hyper Ledgers can store a large amount of text data.
Which method I should choose for storing data on Blockchain?
The best method to store data on the Blockchain can be different for different use cases. However, below are some common use cases and recommended methods to use.
- If you want to store data on public chains and your data is in form of small texts, smart contracts is the best method for you.
- If your data includes image, video, or any other file, then IPFS is the best method for you.
- While using IPFS, you should also consider the use case of using combination of Smart Contracts and IPFS.
- If your data should not be disclosed to the public, then Hyperledger is the best method for you.
- If your data is in the form of large text, then also, Hyperledger is one of the best available method for you.
What are the costs of storage on Blockchain?
There are different kind of storage costs incurred for storing data on the blockchain. Below are the common storage charge scenarios.
- If you are using smart contracts to store your data, many public chains offer "Pay As You Go" method for storing data in terms of charging Gas Fees per transaction. The Gas Fees can be different for different chains.
- If you are using IPFS to store data, many IPFS providers offer "Pay As You Go" payments, however some other offer subscription based storage as well.
- If you are using Hyperledger, you ideally don't have to pay to the Blockchain structure provider, however, you need to deploy the Hyperledger system to your own server and hence, server costs may incur.
After reading this article, I hope you now have a clear picture in your mind about your requirements and commonly available options for storing the data on Blockchain.
Feel free to contact me for any further discussion if any.
FAQs
The biggest reason of use of blockchain for data storage is immutability. The data stored once on the blockchain can never be edited or deleted. There are several methods to store data in decentralized way using blockchain technology, however the most commonly used methods are as follows.
How much does it cost to store data on blockchain? ›
The price for 1 terabyte (TB) per month of decentralized data storage ranges from $0.19 on Filecoin to $4.00 on Storj. On average, 1TB of decentralized data storage costs $2.11 per month in 2023.
Which database is best for storing blockchain data? ›
Using MongoDB Atlas in a blockchain
MongoDB Atlas, the database-as-a-service cloud solution from MongoDB, is perfect for storing a blockchain ledger. Its flexible schema makes it easy to store complex objects such as transactions. It provides enterprise-grade security.
How do I secure my blockchain data? ›
To keep your transaction data safe while using blockchain technology, consider the following best practices: Secure Your Private Keys: Protect your private keys with the utmost care. Use hardware wallets, secure password management, and two-factor authentication to minimize the risk of unauthorized access.
What Cannot be stored in blockchain? ›
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.
Who owns the data in blockchain? ›
Each 'block' is a set of data or some kind of information – most commonly, transactions. Nobody 'owns' blockchain technology.
Where is blockchain data actually stored? ›
The data stored in a blockchain is decentralized, meaning that it is not stored in a single location or controlled by a single entity. Instead, the data is stored on multiple devices, or “nodes,” which are connected to the blockchain network.
Can blockchain store private data? ›
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.
Does blockchain require a lot of storage? ›
So even at a modest transaction rates, storage for Hyperledger blockchain ledger is in the terabyte or multi-terabyte size. Using the most conservative estimate of 1000 transactions per block for the 100 TPS level of blockchain activity, 0.659 TiB of storage per year is required.
How do I create a blockchain database? ›
Here's how it works:
- Create a block. A transaction occurs and is transmitted to the distributed network of nodes. ...
- Link blocks. Each block in the database only stores a certain amount of data. ...
- Add to the chain. All transactions are blocked together in a completely fixed fashion to form a blockchain.
Blocks: You can use a SQL database to store the blocks that make up a blockchain. This would include the block hash, previous block hash, transaction ids, and timestamp of each block. Metadata: You can use a SQL database to store the metadata that is associated with a blockchain.
How is data written to blockchain? ›
📌 The answer is it's “append-only model", which means that once data is added to the blockchain, it cannot be altered or deleted. This immutability is achieved through advanced cryptographic techniques, such as hashing and digital signatures, which secure each block and ensure its integrity.
Is blockchain 100% safe? ›
Blockchain is a secure, immutable ledger that enables the storage of information regarding digital asset ownership within an efficient consensus-based network. It ensures data remains decentralized and accessible to all users at any given time.
How do I keep my blockchain data private? ›
Encryption: All data on the blockchain is encrypted, which means that it is secure and protected from unauthorized access. Only those who have the appropriate permissions can access the data.
How do I encrypt data on blockchain? ›
When one of the participants needs to add a new data item to the blockchain, they first symmetrically encrypt it using the secret key. Then the transaction with the encrypted data is submitted to the blockchain.
Can blockchain replace cloud storage? ›
It's clear that blockchain won't replace traditional cloud computing but will complement it. Whether you're in supply chain management, healthcare, or any other industry, the potential applications are significant.
Is blockchain data permanent? ›
Blockchain allows for the permanent, immutable, and transparent recording of data and transactions. This, in turn, makes it possible to exchange anything that has value, whether that's a physical item or something more intangible.
What is the storage problem with blockchain? ›
Storing data on a blockchain comes with certain limitations, and one major challenge is the potential scalability issue. Unlike traditional payment systems, blockchains can only handle a limited and relatively small number of transactions.
