In comparison of AWS and Ethereum efficiency, there is no doubt that there will be a K.O. in first round in favor of Amazon. There is no point of that comparison since those technologies have two different use cases. What your friends are referring to is
distributed architecture and in this sense they are right. Distributed MySQL databases will beat blockchain, at least today.
However blockchain is distributed and
decentralized system at the same time. There is a lot of confusion what decentralized and distributed means.
Making long story short.
distributed systems:
decentralize the location of some resource removing single point of failure but not necessarily control over that resource.
decentralized systems:
distribute control over some resource by removing central point of failure.
In example:
AWS is distributed. Data and processes are spread across severs all over the world. At the same time they are centralized because users interact through single website controlled by Amazon.
Ethereum is distributed and decentralized. Data is spread all over the world between different nodes. It is also decentralized because there is no single point of failure and control. Well, except maybe Vitalik
This is actually a really good answer but it misses the point. Just a disclaimer I am not an expert in this field hence some of my explanation can be wrong.
Databases can exist in two different partitions, horizontal (fields are horizontal?) or vertical(fields are vertical?)
To understand what TS is asking, assume the blockchain to be a data structure. I personally call the blockchain a data structure as opposed to a database because it still uses a database to store its data. It is highly technical and even I do not understand this topic in detail but I know one of the startups (Gon or something) and Ethereum are working on this.
Bitcoin's blockchain can be stored in either flat files(slower read) or in a database like MySQL, Postgres but the Bitcoin Core/Ethereum Geth uses LevelDB which is Google bigdata table system (one of the best out there technically). The other method would be to use some sort of NoSQL big data database (Hadoop/Cassandra). Then it comes to the parsing, query, storing structures, you will need to look into Merkle Patricia Tree, key-value, BTrees, Hemp, Hash Tables etc.. based on the use case. If you want for faster reading I believe it is HDFS using mapReduce, you can shard across the clusters to store the data.Some data architect here can probably explain this better.
For 99.9% of the ICO's out there, it would be better for them to use a typical relational database (which eventually they will - MySQL/Postgres) due to the complexity related to data storage and reading. Most blockchains are focusing on user usage, improving their proof-of-
, not the actual read-write process itself because of the complexity involved.
In summary, yes read/write operations on blockchains will be way much faster in the future since research funding are being poured into this field.