How Data is Stored on the Blockchain

Blockchain first became popular because of its association with Bitcoin, though blockchain is an innovative technology all on its own that has nearly endless possible applications.

However, the reason blockchain technology was used for Bitcoin was its secure data storage. Blockchain is an excellent way to store data, as the basis of the technology is security and verifiability.


Based on a peer-2-peer system, blockchain is an efficient, decentralized system. Each new transaction is built on to the transaction that came before it, securing both pieces of data.

Blockchain is faster and more secure than traditional data storage systems. It is a shared ledger network where no data is held by a single entity. Only authorized users can access the data, which is stored and secured among an entire network of nodes. The nodes share the burden and workload of managing and storing data.

How Blockchain Stores Data

When data is added to a blockchain network, it is broken into small pieces or shards. These shards are encrypted, uploaded, and stored in all of the servers. Shards can be sent and recalled parallelly for faster file transfer, as the smaller pieces send more quickly.

No entity on the network has the entire file. The uploader is the sole owner of a private key, which is used to discover all of the shards. Because it is split into pieces, the data cannot be tampered with or deleted. Even if part of the network is down, all of the data shards are available.

The shards are stored together by using swarms. A swarm is a large group of nodes that store and manage data, sharing the load and supporting a more efficient system.

The Benefits of Blockchain Data Storage

Using a blockchain system to store data ensures that information is secure. Unlike traditional data storage, like cloud networks, no one user can edit or delete data. Even if a hacker were to gain access to the system, they would have to find and piece together every shard of data.

Bitcoin brought blockchain technology to the forefront of the industry, but it has come to stand on its own. Blockchain is an excellent way for organizations to securely store their data. Users will maintain their own access to files, but others cannot see, edit, or delete data.

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