Cloud computing is a recent emerging technology in IT domain.It plays vital role for IT services such as supplement, consumption and delivery models. It is purely based on pay per usage. Service providers influences consumers in the way that the cost benefit of this computing paradigm. . In such a circumstances, tasks are supposed to planned efficiently such that the execution cost is high and time is reduced. It encourages highly skilled hackers by establishing a urge for production to be consider one of the recent top issues while viewing cloud computing. Cloud databases are effectively used for information-escalated applications, such as storage and mining of huge amount of data or commercial data. These applications are changeable and multiple reason in nature. Databases with the help of these types of applications have to include four important merits. Atomicity, Consistency, Isolation, and Durability (ACID), although employing these databases is not simple for using in the cloud. The aim of this paper is to discover out the merits and demerits of databases widely accessed and employed in cloud systems and to review the challenges in developing cloud databases.