As two of the newer technologies out there, both the blockchain and Big Data are being viewed as the future of businesses large and small. No matter what size a business is and no matter what industry is involved, there will always be a need for data analysis and with the benefits inherent in the blockchain, the two combined can be a driving force, a literal powerhouse.
As both technologies continue to evolve and intersect at some point, it will be interesting to note some of the benefits big data can capitalize on by existing in the blockchain. Let’s take a closer look at just how big data can benefit from blockchain technology.
How Exactly Does the Blockchain Work?
The blockchain explained in the most simplistic understanding is that it is a database distributed over millions of computers around the globe. Information is anonymous to anyone who doesn’t hold a ‘private key’ and, as such, it is the perfect method of gathering unbiased data. The implications of this are beyond the current paradigms we’ve established for analyzing the data that comes in day by day, hour by hour.
One example might be assessing market conditions for a crypto trader. With the ability to assess the Ethereum current prices at OKX, a trader would have the benefit of following transactional history to see if this is the right time to buy, sell, or hold. It negates the need for human financial advice. Authentic data in real-time is right there in front of them.
The data collected isn’t subject to human emotions or prejudice in the blockchain because it is simply a series of transactions held in the ledger and disseminated across millions of global computers. It’s truly unbiased data, or as unbiased as it gets since the information collected cannot be changed or manipulated. Big data in the blockchain is the epitome of authentic transactional histories.
Greatly Improved Security Getting Greater by the Day
Since the blockchain is decentralized and not controlled or manipulated by any private individual or government institution, any data out there is authentic. No data can be changed without the approval of all parties involved, so that offers the greatest level of security imaginable. Even so, as an open-ended, open-sourced technology, even greater security measures are predicted within the very near future.
One issue which has yet to be resolved is how the blockchain is unable to assess risks. Since how we currently assess the risk of fraud is based on historical factors, i.e. past data, there is yet no solution in the blockchain. However, what the blockchain can do is provide current data that businesses and financial institutions can analyze in mere seconds because of how it is gathered, collated, and filed in those transactional ledgers. Fraudulent patterns become easy for humans to evaluate but there will come a day when blockchain technology will be able to do all that and so much more.
The bottom line is that with such a controlled method of sharing, big data that is gathered can be immediately authenticated. Without the need for human interaction, big data can paint the way forward through honest analysis that cannot be manipulated. And that is your key takeaway for today. Big data in the blockchain is as authentic as it gets.