Question 1

What's the difference between blockchain and a traditional database?

Accepted Answer

A traditional database is usually controlled by one organization and can be changed by admins (with logs and backups). A blockchain is a shared ledger where multiple parties keep synchronized copies, and new records are added in a way that’s hard to alter later. Blockchains are useful when multiple organizations need a common, tamper-evident record without relying on a single central owner.

Question 2

When should I use blockchain?

Accepted Answer

Use blockchain when you have multiple parties that don’t fully trust each other, need a shared source of truth, and require strong auditability (for example, supply chain events, inter-company reconciliation, or shared asset registries). Avoid blockchain if a single organization controls the data, you need high throughput/low latency, or you can meet requirements with a standard database plus access controls and audit logs.

Question 3

How much does blockchain cost?

Accepted Answer

Costs depend on the model: (1) Public blockchains: you may pay transaction (gas) fees that vary with network demand, plus node/infra costs if you run your own nodes. (2) Permissioned/enterprise blockchains: you pay for managed service pricing (node hours, storage, networking), operations, and integration work. Major cost drivers include number of nodes/validators, transaction volume, data storage growth, availability requirements, and security/compliance controls.

Blockchain

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