Blockchain and big data: walks side by side
Blockchain and big data are all new generation information technologies. Their concepts are different and there are certain differences in application fields. Blockchain and big data are also two technologies that are booming and both are complementing each other.
In recent years, blockchain technology has gradually become the core of computer technology. It is an encrypted secure distributed storage database technology for storing and transmitting information. Each record in the database is called a block and contains details such as the transaction date and the link to the previous block. The main advantage of a blockchain is that it is distributed and no one can control the data entered or their integrity. However, these checks are performed continuously by various computers on the network. These different machines hold the same information. In fact, corrupted data in one computer cannot enter the chain because the damaged computer does not match the equivalent data held by other computers. Simply put, as long as the network exists, the information remains in the same state.
Coming to the present, both blockchain and big data are all new generation information technologies. Their concepts are different and there are certain differences in application fields. Some people think that blockchain technology will replace big data. On the other hand, some people think big data can’t be replaced. Being a customer or normal people we can’t judge which views are correct. After all, their starting point is different. What we are going to talk about today is that blockchain and big data do not replace each other, but walk side by side complementing each other.
How blockchain and big data complementing each other:
- Blockchain and big data guarantee data security – Blockchain technology helps prevent data leakage. Once the information is stored on the chain, even the highest level of management in the company requires multiple permissions from other points in the network to access the data. Therefore, cybercriminals cannot possess it.
Through scalability, blockchain allows data to be shared in a calmer manner. In the case of hospitals, institutions may need to share health data with courts, insurance companies, or employers of patients. However, this process can be risky if there is no blockchain.
- Blockchain and big data technologies can be used for data analysis – The blockchain also complements data analysis techniques. For example, in 2017, a consortium of 47 Japanese banks signed an agreement with the startup Ripple to transfer funds between bank accounts through the blockchain. In general, real-time transfers are expensive, and there is also the risk of double-spending fraud (using two transactions with the same asset). The blockchain eliminates this risk.
Even better, the blockchain allows banking institutions to detect fraudulent attempts in real-time. Knowing that the blockchain holds a record of each transaction, it allows banks to explore data in real-time. Blockchain and big data ensure the security of bank transactions.
- Blockchain and big data resolve privacy issues – The use of blockchain also poses privacy issues, which is directly attributable to the original popularity of the technology. Some experts worry that transaction records may be used to create consumer profiles or other abuse.
However, blockchain actually improves the transparency of data analysis. If the entry cannot be verified, it can be automatically rejected. Therefore, the data is completely transparent. Other experts are also concerned about the impact of blockchain and big data on the environment.
- Social data that predicts bitcoin prices – Data from social networks is very useful in predicting consumer behavior. However, it turns out that Bitcoin users and social network users have many similarities in demographics, and they have a lot in common in terms of opinions and attitudes.
That's why many data analysts are now researching social data to predict the price of bitcoin and other cryptocurrencies and to link the price of these cryptocurrencies to real-world events.
By 2030, the blockchain will account for 20% of the big data market. According to Neimeth's estimates, by 2030, the value of blockchain distributed ledgers could reach 20% of the entire big data market, generating annual revenues of up to $100 billion. Its annual revenue will exceed $100 billion, exceeding the sum of PayPal, Visa, and Mastercard. Big data analytics is critical to tracking transactions and making better decisions for companies that use blockchain. That's why new data intelligence services are emerging to help financial institutions, governments, and other businesses understand who they interact with the blockchain.