4 Ways Blockchain Data Indexer Outperforms Traditional Database Solution

In a data-driven world, it is only natural that data management becomes an integral part of it. From data storage to retrieval, the need for practical tools for data management cannot be overemphasized in today’s world.

The development of technology has given rise to the introduction of centralized and decentralized data management tools. In the traditional tech space, we have centralized data management systems for data storage, data retrieval, and data access. This similar problem is resolved in the blockchain space using a decentralized tool called indexer.

Get a glimpse at what you can achieve with the best blockchain indexer API from Chainnodes

Now, let’s examine why data is so important

Why is data so important today?

In the traditional tech and blockchain space, developers rely on data to improve existing systems. For instance, dapp developers require on-chain data to create more decentralized applications that offer sophisticated solutions to users’ problems. However, to rely on a data storage system for this purpose, the system must ensure:

Data protection: For data to be useful for developers, its integrity must be ensured and protected. This requires that data be stored in a system that is effective for storage and resistant to manipulation.
Data accessibility: Access to properly structured data is fundamental to the development of innovative tech. However, surfing through endless amounts of data can be mundane, costly, and time-consuming. This is why a data storage system must go beyond storing data to ensuring that data are strategically stored and defined in a way that querying a particular dataset for accurate and specific information is possible.

Now that we’ve discussed two fundamental reasons why data management is crucial in both the traditional technology and blockchain space let’s examine the tools employed for data management: Indexer and centralized database.

What is a Blockchain Indexer?

In the blockchain space, an Indexer is a tool designed to extract data from blockchain nodes and present the data in a structured and digestible format for users. Ordinarily, blockchain on-chain data is not readily readable, given its cryptographical nature. This is where an indexer becomes expedient because it is a tool that can extract, transform, analyze, and store data in a way that can be easily retrieved and understood by users.

Indexes like The Graph store different information in a dataset. Searchers can then input these indexes to get specific data. For instance, a particular dataset may contain indexes like transaction volume, wallet addresses, transaction log, transaction hashes, transaction ID, blockchain, and more. A developer who needs to know the transaction volume can just input transaction volume in the search section on an indexer to generate the specific data required.

While system specifications may differ, a typical indexer features components like a user interface, data source, database, search API, and indexing engine to offer users a more efficient and swift data storage and retrieval system. Also, some indexers may feature additional tech tools to provide complex data querying, smart contract filtering, and more.

In the traditional space, data is stored in different centralized systems where it can be accessed and used by organizations for several purposes. While data in this space is usually analyzed and stored in a structured way to ensure easy retrieval as well, the truth is blockchain indexers offer additional benefits that transcend simple data storage.

4 Ways Blockchain Indexing Outperforms Traditional Database Solutions

1. Data Modification

In the traditional database, stored data can be modified by anyone with access. This means that data integrity is ensured only to the extent that the data storage agent remains trustworthy. Indexers rely on blockchain to render data tamper-proof, given its immutable feature. This implies that once data is analyzed and stored, it can no longer be modified.

2. Data Access

Blockchain data is often stored and distributed in a decentralized manner, which makes using a centralized storage system completely inappropriate. Indexing tools, like The Graph, must be accessed through an efficient, scalable framework like the Chainnodes Indexing API to ensure that dapp developers can easily access blockchain data to facilitate quick decision-making.

3. Performance

Traditional databases are primarily unreliable due to system performance and vulnerabilities. Aside from the fact that data integrity is not always ensured, it is also true that manual processes may be required in the process of retrieving data from a traditional database. This is contrary to the experience with blockchain data indexers, where every operation is automated and can be initiated through the search APIs.

4. Compatibility

In terms of utility, using a traditional or blockchain database may require that a user conduct a system compatibility test. For instance, while the indexer basically stores on-chain transactions, it does not store web2 data that users may require in some cases. For example, while building a decentralized application requires reliance on blockchain indexers, organizations that need to access employment information need to rely on their internal data storage system for that.

Conclusion

While there are several data indexers, The Graph has consistently proven to be a desirable option for developers looking for fast and reliable means of accessing the multichain data. Its advanced functionalities and interoperability ensure that developers can go beyond accessing structured and readable blockchain data to performing complex indexing activities.

To access this reliable tool, Chainnodes provides a cost-effective API that allows developers to integrate it with their system for swift data access and retrieval.

Want to know if The Graph is a suitable for your dApp? Read about its features and capabilities here