Distributed Ledger Technology vs Centralized Databases

Developers should learn DLT when building decentralized applications (dApps), financial systems, or solutions requiring tamper-proof data integrity, such as in healthcare, voting, or identity management meets developers should use centralized databases when building applications that require strict data consistency, centralized administration, and simplified backup and recovery, such as in enterprise systems, financial applications, or legacy systems. Here's our take.

Distributed Ledger Technology

Nice Pick

Developers should learn DLT when building decentralized applications (dApps), financial systems, or solutions requiring tamper-proof data integrity, such as in healthcare, voting, or identity management

Pros

• It is essential for roles in blockchain development, fintech, or industries prioritizing transparency and security without intermediaries, like in cross-border payments or asset tokenization
• Related to: blockchain, smart-contracts

Cons

• Specific tradeoffs depend on your use case

Centralized Databases

Developers should use centralized databases when building applications that require strict data consistency, centralized administration, and simplified backup and recovery, such as in enterprise systems, financial applications, or legacy systems

Pros

• They are ideal for scenarios where data volume is manageable and network latency to the central server is low, ensuring reliable and controlled data access
• Related to: sql, database-management

Cons

• Specific tradeoffs depend on your use case

The Verdict

These tools serve different purposes. Distributed Ledger Technology is a concept while Centralized Databases is a database. We picked Distributed Ledger Technology based on overall popularity, but your choice depends on what you're building.

The Bottom Line

Distributed Ledger Technology wins

Based on overall popularity. Distributed Ledger Technology is more widely used, but Centralized Databases excels in its own space.