How To Use Blockchain To Store Data [Multiple Options Available]

Bitcoin and Ethereum these cryptocurrencies have recently got very famous, and people are crazy about it. Blockchain is the reason for the success of these cryptocurrencies. Every industry is acquainted with the benefits of blockchain and is utilizing it. Since the technology revolution is expanding every day, almost everything is done digitally. Thus, it calls for the most crucial aspect, i.e., security. 

Blockchain is a superhero that provides a safe and secure gateway for transactions. As the name suggests, it is a chain of blocks. Block refers to digital information, and the chain refers to the public database. It is used in Healthcare, property records, smart contracts, supply chain use, etc.


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Why do we need blockchain for data storage?

The traditional way of storing data is by using cloud storage. It has a great demand and, thus, is prone to misuse. The major disadvantage being all the information is centralized. Data becomes vulnerable and is not usually encrypted during transactions. 

Data is the most critical unit in the world. Storing, processing, analyzing data is a significant task, and new technologies are growing to make the task as easy as possible. The centralized data makes it possible for hackers to hack data. Thus, we need decentralized cloud data.

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Decentralized cloud data is difficult to attack and ensure more security. It reduces the cost also.

Must Read: How to make a successful career in Blockchain?

How to use blockchain for data storage?

There are two methods of storing data via blockchain with On-chain and Off-chain. As the name suggests, all the data is stored inside each block on the chain in an on-chain way. Thus, if an attack happens, data can be restored and used. Well, as everything has a price, this is a costly affair. It even costs a fortune at times, because the data and network get overloaded. Thus, many storage options used are off-chain. 

Off-chain storage doesn’t store the entire data, but the metadata alone. It has a disadvantage, though. If any system breach happens, the data might not get restored. Still, they are cost-efficient, which makes it the perfect option.

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Interplanetary File System

This blockchain technology uses the BitTorrent protocol. It involves the breaking up of data into shards and storing them in multiple instances. Thus, the file gets downloaded only if the person needs it. It is a peer-to-peer solution. It allows data to be address dependent. This is one of the most important blockchain use cases.

As everything comes with a price, you can access the file only if you know the name or path of it. However, It serves only static data.

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Decentralized Cloud Storages

You might have heard of Dropbox. It works on the principle of decentralized cloud storage. In this, data is not loaded on the company server but the devices of the renters. You can only use it online, which makes it fast and efficient. The advantage being it can only maintain static data and, of course, it comes at a price.

Also read, blockchain career and its future scope

Distributed Databases

Since we have to store organized information and look for cutting edge inquiry capacities, we may take a gander at the conveyed NoSQL information bases. Why NoSQL? Since severe value-based SQL information bases cannot be genuinely appropriated because of the limitations of the CAP-hypothesis. 

To make an information base disseminated, we should forfeit either consistency or accessibility. NoSQL information bases pick accessibility over consistency, supplanting it with supposed “possible consistency,” where all the data set hubs in the system become predictable sometime later. Many developed acknowledgments of such information bases, for instance, MongoDB, Apache Cassandra, Rethink DB, etc.

They are awesome – quick, versatile, flaw lenient, uphold rich question language, yet have a lethal disadvantage for our application. They are not Byzantine-verified. All the hubs of the bunch completely trust one another. So, any pernicious hub can annihilate the entire information base.

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There is another undertaking called BigChainDB that professes to unravel the information stockpiling and exchange speed issue. It is additionally a blockchain, with a huge information limit and rapid exchanges. Let us perceive how it is conceivable. BigChainDB expands upon the RethinkDB group; I referenced this NoSQL information base on the last slide. BigChainDB utilizes it to store all the squares and exchanges.

That is the reason it shows such a high throughput – it is one of the basic NoSQL information bases. All the BigChainDB hubs (indicated BDB on the slide) are associated with the group and fully compose admittance to the information base. 

However, here comes an issue – the entire BigChainDB isn’t byzantine-verified. Any vindictive BDB hub can crush the RethinkDB group. The BigChainDB group knows about this issue and vows to understand it soon. Anyway, it is the foundation of engineering, and transforming it may not be possible.

Regardless, BigChainDB might be useful for a private blockchain. Yet, as I would like to think, to keep away from disarray, it ought to have been named BigPrivateBlockchain. It’s anything but a possibility for an open stockpiling. One of the best blockchain use cases.

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The smart way, the hash way

The intelligent way of storing data is to store the hash of the data in the blockchain. Hash is a generated string, by providing our data as input. The hash of the data is comparatively minimal; thus, the cost is low.

The raw data can be stored using a file system as well. Make sure to attach the hash id of the blockchain to raw data. Thus, the smart way enables us to benefit from the blockchain methodology without paying a fortune.


Currently, available choices could be a decent open information base. The nearest to the ideal is the NoSQL information bases. The main thing they need is a byzantine adaptation to non-critical failure. The Ties Network Database: ties network is a profound adjustment of the Cassandra information base. It offers the best arrangement:

The TiesDB acquires most of the highlights from the hidden NoSQL information bases and includes byzantine adaptation to internal failure and motivators. These highlights can turn into an open information base and empower include rich applications on Ethereum and different blockchains with shrewd agreements. The information base is writable by any client. In any case, the clients are recognized by their open key, and all the solicitations are agreed upon. 

Once made, the record recalls its maker who turns into a proprietor of the record. After that, the record can be altered uniquely by the proprietor. Everybody can peruse all records because the information base is open. All the consents are kept an eye on solicitation and replication. Extra consents can be overseen through a savvy contract.

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Where is the data from the Blockchain stored?

A decentralized public ledger is where blockchain data is stored. Blockchain store data in the form of blocks that are linked together with cryptography. 

Each block in the blockchain is identified by a distinct cryptographic hash, which is also used to identify the previous block.

With each block, a new transaction is recorded and stored, and added to the database. All transactions are recorded in each new block and are then added to the preceding one. Blockchain data cannot be modified or erased because doing so would need changes on every block after that.

The person who solves the proof-of-work enigma (for example, by providing the right answers to an equation) is rewarded with newly produced bitcoins and is required to add that to the blockchain. However, because solving them by hand takes time, miners compete to be the first to finish them by leveraging the power of computers.

Ways in which Blockchain data can be stored – 

There are different ways data can be stored in built block chain applications – 

  • Bitcoin – The complete history of all bitcoin transactions is included in the data. In order to rectify itself, if one node makes a mistake, thousands of other nodes are used as a reference.
  • Corda – This is one of the more important block chain applications that is open-source and does not rely on a global broadcast. It helps streamline business operations while lowering the cost of recordkeeping. Here, the usage of graphs and persistent queues allows for the verification of peer communication without downloading the entire dataset.
  • Ethereum – Ethereum uses a trie data structure to store data. It distinguishes between mining transaction data and temporary data. Only when the transaction has been verified is the data put into the transaction trie. In Ethereum, there are three types of trie used for data storage.
  1. Transaction Trie – Ethereum blocks each have their own unique transaction tire. A block includes numerous transactions.
  2. State Trie – This global state tree, which holds the key-value pair for each account that is active on the Ethereum Network, is regularly updated.
  3. Storage Trie – The contract information is saved here. A storage trie is present in every Ethereum account, and the global state trie stores the 256-bit hash value of the storage trie’s root node.

How can you use Blockchain to store data?

Blockchain store data in the form of blocks. Storing data in a Blockchain can be accomplished using different methods – 

  1. On-chain Storage – As the data is saved inside each block on the chain, this is the most expensive way to store data in the blockchain. Data can be accessed and recovered if an intrusion occurs.
  2. Off-chain Storage – Only the metadata is stored in the chain under this sort of storage. Since the entire metadata is not kept in the chain, it might not be able to recover the data in the instance of a breach. This is a less expensive way to store data.

Wrapping up

Without a doubt, this field holds extraordinary potential. However, how prepared would you say you are to exploit it? 

There aren’t numerous dependable Blockchain courses in the market today since the vast majority are themselves attempting to get it. Furthermore, out of the not many that there are – upGrad’s Blockchain course is truly outstanding. It contains everything you require to think about this innovation and transform it into a rewarding profession while others are still figuring out things.

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How can businesses take advantage of data storage using blockchain?

There are several ways that firms can use blockchain to store data. One option is to construct a private blockchain network for your company using a blockchain platform like IBM Blockchain. This network can be used to store and share information with your consumers and business partners. IBM Blockchain enables you to build a secure, tamper-proof network in which you have complete control over who has access to your data. Another approach for organizations to benefit from blockchain data storage is to use a blockchain-based storage platform. This can be a good option for companies that need to store a lot of data and want to make sure it's secure and untampered with.

Are there any potential drawbacks to data storage using blockchain?

The most significant disadvantage of employing blockchain technology for data storage is that it is still in its infancy. As a result, there are few, if any, enterprise-ready blockchain-based storage solutions. Furthermore, because blockchain technology is still relatively new and unproven, there is a level of risk connected with its implementation. Moreover, blockchain technology has not yet reached the same level of adoption as other storage technologies such as standard cloud storage solution

How can we prepare for the future of data storage using blockchain?

There are a few things you may do to get ready for the future. Learning about blockchain technology and how it works, investigating how blockchain can be used to store data and how it could potentially improve data security, considering how blockchain could be used in your business or organization and planning for how to integrate it into existing systems, and staying up to date on the latest news and developments in the blockchain world to stay ahead of the curve are some possible ways to prepare.

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