21 May 2019
Updated on May 31st, 2022

Everything You Need To Know About Storing Data On Blockchain


Techugo Pvt. Ltd.

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Widely known for creating cryptocurrency bitcoin, blockchain is expanding its reach. Not for creating cryptos, but for developing stringent, secured and highly competitive systems. Businesses are striving to utilize this technology for various purposes. Since the development of bitcoin, this technology has created a ecstasy among enterprises. Every business is engaged in finding ways to leverage this technology.

Not among businesses, but also among people it is well known, and everyday various new application and utilization come in this space. Everybody is aware of the fact the blockchain stores transactions in the form of digital packs of data, and for that, it utilizes the concept of storing data in blocks.  Altogether, there is no such adherence for data to be a financial entity. It can vary according to the industry and utilization.

Since its emergence, its usage has been questioned by various people, but! its utilization for storing document interests, everyone. Indeed, storing documents of a highly secured system like blockchain is what every enterprise aspires for. owing to that, businesses are looking towards it to store important documents. Let’s take a deeper look into this and understand how it is effective.

Storing Documents in Blockchain

Digital documents are prone to data theft and hacking that’s why there is a great need to utilize highly secured system. Storing a large amount of sensitive data in existing systems, which are vulnerable to loss, theft, and leakage, is wastage of time and efforts.

Actually, these trustless storing environments are expected to store and manage data for long duration of time. for which they are not compatible enough. This technology is revamping existing systems for storing and managing digital documents.

The invention of blockchain ledger system can reduce the traditional practice of storing digital documents and transaction and eradicate the need for middle authority to manage data. On blockchain platform, cryptographic algorithms prevent unauthorized access to all records and instil. An access control environment where only authorized persons can access the data.

What makes Blockchain a fit for storing documents?

A document storage system with this technology is very dull and less exciting, though it offers various improvements over existing document storage systems. Surely! how these systems are better for document storage is a matter of concern. Here are some aspects that make it a fit for storing sensitive information.

Avoids Tempering

Surely, the immutability makes it different from others and offers great benefit of blockchain. In this model, blocks of data linked with each other through cryptography offer a data immune for tampering. This immune resistance is a great way of preventing counterfeiting of documents and chances of fraud. Altogether, storing of a large document on blockchain is also easy and hash makes data linking seamless.

The fact is documents need a lot of space, and storing the whole of a document over the blockchain is troublesome. In this system, hash algorithms take up a fraction of space for hash, which makes document storage more efficient.

Storing of hash offers the temper resistance, in result whenever someone modifies the file the corresponding hash value also changes. This is the best benefit of hash algorithms. It doesn’t matter where the document is stored, one can verify the consistency of document and can find out the document hasn’t been tampered.

Enables Visibility

Another beneficial aspect is visibility, it means enterprises can make their documents accessible to public. But for this, enterprises need to be absolutely confident that what they want to make visible. once a document will be stored with the hash. It will stay there permanently. no changes and modifications could be made in the block. These systems allow you to preselect the group for permanent visibility.

Decentralization of documents

Another most effective aspect is decentralization of documents. Owing to the confidential nature of your documents. you cannot trust a third-party storage provider to not tamper and delete the document.

By uploading hash or document to the public blockchain, enterprises don’t need to worry about the safety of document or corporate censorship.

How to store the document on a blockchain?

Mainly there are only two ways to store document on the blockchain. one is to store whole document on the chain and another is to store a hash on the chain. Where the processes of storing whole document on-chain require certain blockchains. But! This method isn’t effective because the problem of access latency arises in this system. It means how long it takes to upload and download the file on such network.  File storage must have low latency, otherwise, the system becomes slow, costly and clogged up.

Another way to store the documents on blockchain is storing the hash for files. This is a very efficient way, as you store the hash of document on-chain and store the whole document somewhere else. Altogether, there is no restriction for database, both centralized and decentralized database can be used. In this method, the document gets secured by hash through hashing algorithms like SHA-256.  The hash values are smaller than the document and can be stored in less space on-chain. This is a good way to save space and cost and prevent document tempering.


Blockchain is paving the new ways for data storage and triggering digital transformations. In context of privacy, the benefits of blockchain are more apparent. Utilization of it, for storing digital records solves all the problems such as data theft, data leakage and more. As the data is decentralized, enterprises can expect smooth functioning of the system and it is not dependent on any particular storage service provider.  It is best way to protect the sensitive. Altogether, as records are immutable there is no chance for data loss and alteration.

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