Two emerging technologies that are high on the agendas of many firms are “blockchain” and “big data.” Both are anticipated to significantly affect how companies and organizations run in the next years. Although “Big Data” has been around for a while, blockchain technology is currently experiencing a surge in popularity. What possible results could arise from integrating these two innovations? Due to how much data organizations produce, blockchain technology and big data have seen significant growth. At this critical juncture, blockchain technology emerges as a trustworthy, cost-effective, and decentralized ledger for storing anonymous data generated on a daily basis. At first glance, these technologies may appear to be mutually exclusive in terms of long-term development. However, that point of view is changing.
How does a blockchain operate and what is it?
Blockchain technology is a “distributed database” system that acts as an “open ledger” to store and manage transactions. A block is a database record that includes details like the transaction timestamp and a reference to the block before it. The records’ data cannot be changed in the future by anyone seeking to do so. Due to the fact that the same transaction is logged across several, distributed database servers, the system is also secure by design. In light of the aforementioned, Blockchain is immutable—information keeps its original state throughout the network’s existence. Bringing together blockchain and big data. Blockchain introduces a new “Bringing Blockchain” and “Big Data Together.”
The addition of blockchain to the Big Data analytics process adds another data layer. Most notably, this data layer satisfies two major “Big Data analysis” requirements: Blockchain-generated Big Data is secure because the network architecture prevents forgery. Big Data based on blockchain is useful since it is structured, abundant, and full, making it an ideal source for further analysis. Most significantly, this data layer complies with two important criteria for Big Data analysis:
1. Big Data generated by blockchains is secure since “forgery” is prevented by the network architecture.
2. Blockchain-based big data is beneficial since it is well-structured, plentiful, and complete, making it the perfect source for further research.
Blockchain has a compelling business case in financial services. Consider the magnitude of blockchains. Massive data lakes of blocks contain the complete history of every financial transaction and can all be analyzed. Blockchain ensures the integrity of the ledger but not the analysis. “Big Data and the analysis tools” that go with it will come in handy here. Companies may be able to save money by using “Blockchain technology” to store Big Data. Blockchain has the capacity to store massive amounts of data for extended periods of time.
Benefits of Blockchain in Big Data Transformation
- Understanding Transactional Data
The most “obvious advantage: of using big data techniques to crypto blockchains is finding “transactional information.”
This information can help in figuring out how many individuals use a particular cryptocurrency, as well as how often and how much is sent and received. This might assist you in making wiser choices regarding “your actions” and seeing “emerging patterns” in the use of cryptocurrencies.
- Exercise Command Over Data Sharing
With a “blockchain-based big data solution,” providers might “exchange records” with any interested industry without worrying about the risks associated with a network of “different data silos.” In this scenario, data from data studies can be kept on a blockchain network.
This stops project teams from “misusing” previously used data or from duplicating “data analysis” work done by other teams.
By enabling them to exchange “analysis results” that are stored on the network, a blockchain platform can also help data scientists make money from their job.
- Sharing and Monetization of Data
Data is the most important piece of information in today’s society, and by merging blockchain and big data, we can improve how data analytics is shared and monetized.
Because of this, customers may be able to negotiate with businesses to determine which entities have access to their data and which do not.
- Boost Information Security
The biggest advantage that “blockchain technology” offers to “big data analytics” is probably the data security that it offers. Because the system is decentralized and cannot be changed without the agreement of all stakeholders, no one person has control over it. This enhances “transparency” throughout the system and lowers the likelihood of fraud.
- Facilitate Data Access
“Big Data and analytics” can benefit from blockchain in part through improving data access. The blockchain can be expanded to include users from different corporate divisions, providing them with access to the data required for analysis.
As a result, “work is completed more quickly and data collection and analysis take less time.”
All users who have been given access to particular data will have a single, unchangeable source of information thanks to the database’s inclusion in a blockchain. Additional “authorized signatures or permissions” from other network participants may be needed to access records on a blockchain.
This will guarantee that everyone obtains the precise information they need to carry out their job.
- Fraud prevention
The challenges of “identifying fraud and evaluating risk” in the “financial services” industry have not yet been resolved by big data. This is because “existing detection” and “assessment systems” rely on historical data. Thanks to blockchain technology, “financial institutions” can monitor every transaction in real time.
As a result, banks are now able to spot risky or fraudulent transactions instantly, eliminating the need to review the records of previous frauds.
If financial institutions can use blockchain to carry out transactions, they will finally be able to assess risk and spot suspicious patterns in real time. By doing this, fraud against banks and their customers will be reduced.
7. Data Exchange
Thanks to data sharing platforms like Dock, working professionals can manage their employment profiles on a single platform rather of juggling many profiles on different job boards.
In order to enable professionals to create thorough profiles, Dock also gathers certificates and other experiences from a number of sites and keeps them all on the blockchain. Studies show that only about 75% of corporate data is used for data analytics. Blockchain, however, has the ability to ease these restrictions by enhancing the security and ease of data sharing without incurring large infrastructure costs.
- Data quality is better
Technology is revolutionizing data storage. By using blockchain in place of conventional storage methods, businesses can increase the quality of their data because it is comprehensive and well-organized. Blockchain also strengthens the foundation of a Big Data analytics solution by eradicating weaknesses. This enhances accuracy and encourages thorough analysis, producing rich and reliable business insights. When the data gathered by large enterprises is secure, dependable, and available, it will be simpler for firms to make decisions based on their insights.