Perhaps most significant development te IT overheen the past few years, blockchain has the potential to switch the way that the world approaches big gegevens, with enhanced security and gegevens quality.
By Abhinav Venkat, Noah Gegevens.
“Arguably the most significant development te information technology overheen the past few years, blockchain has the potential to switch the way that the world approaches big gegevens, with enhanced security and gegevens quality just two of the benefits afforded to businesses using Satoshi Nakamoto’s landmark technology.”
What is a Blockchain?
Blockchain is a distributed database system that acts spil an “open ledger” to store and manage transactions. Each record te the database is called a block and contains details such spil the transaction timestamp spil well spil a listig to the previous block. This makes it unlikely for anyone to alter information about the records retrospectively. Also, due to the fact that the same transaction is recorded overheen numerous, distributed database systems, the technology is secure by vormgeving.
With the above te mind, blockchain is immutable – information remains ter the same state for spil long spil the network exists.
Blockchain and Big Gegevens
When you talk about blockchain ter the setting of Bitcoin, the connection to Big Gegevens seems a little tenuous. What if, instead of Bitcoin, the blockchain wasgoed a ledger for other financial transactions? Or business contracts? Or stock trades?
The financial services industry is commencing to take a serious look at block chain technology. Oliver Bussmann, CIO of UBS says that blockchain technology could “pare transaction processing time from days to minutes.”
The business imperative te financial services for blockchain is powerful. Imagine blockchains of that magnitude. Thick gegevens lakes of blocks that contain the utter history of every financial transaction, all available for analysis. Blockchain provides for the integrity of the ledger, but not for the analysis. That’s where Big Gegevens and accompanying analysis devices will come into play.
Opportunities for Big Gegevens Analytics
Recently, a consortium of 47 Japanese banks signed up with a blockchain startup called Ripple to facilitate money transfers inbetween handelsbank accounts using blockchain. The main reason behind the budge is to perform real-time transfers at a significantly low cost. One of the reasons traditional real-time transfers were expensive wasgoed because of the potential risk factors. Double-spending (which is a form of transaction failure where the same security token gets used twice) is a real problem with real-time transfers. With blockchains, that risk is largely avoided. Big gegevens analytics makes it possible to identify patterns te consumer spending and identify risky transactions a loterijlot quicker than they can be done presently. This reduces the cost with real-time transactions.
Ter Industries outside of banking too, the main drive for adoption of Blockchain technologies has bot security. Across healthcare, retail and public administration, establishments have commenced experimenting with blockchain to treat gegevens to prevent hacking and gegevens leaks. Te healthcare, a technology such spil blockchain can make sure that numerous “signatures” are sought at every level of gegevens access. This can help prevent a repeat of events such spil the 2015 attack that led to the theft of overheen 100 million patient records.
Possibilities te Real-Time Analytics
Up until now, real-time fraud detection has only bot a pipe fantasy and banking institutions have always relied on using technologies to identify fraudulent transactions retrospectively. Since the blockchain has a database record for every single transaction, it provides a way for institutions to mine for patterns ter real-time, if need be.
But all of thesis possibilities also raise questions about privacy and this is te rechtstreeks contradiction to the reason why blockchain and bitcoins became popular ter the very first place. Several industry experts have voiced concerns that a technology that can provide a record of every transaction can be exploited for everything “from customer profiling to other less benign reasons”.
From another perspective however, blockchains greatly improve transparency te gegevens analytics. Unlike previous algorithms, the blockchain vormgeving rejects any input that it can’t verify and is deemed suspicious. Spil a result, analysts ter industries such spil Retail only overeenkomst with gegevens that is fully see-through. Te other words, the customer behavior patterns that blockchain systems identify are likely to be a entire lotsbestemming more accurate than it is today.
Uncovering Transactional Gegevens
The gegevens within the blockchain is predicted to be worth trillions of dollars spil it resumes to make its way into banking, micropayments, remittances, and other financial services. Ter fact, the blockchain ledger could be worth up to 20% of the total big gegevens market by 2030, producing up to $100 billion te annual revenue. To waterput this into perspective, this potential revenue surpasses that of what Visa, Mastercard, and PayPal presently generate combined.Big gegevens analytics will be crucial te tracking thesis activities and helping organizations using the blockchain make more informed decisions.
Gegevens intelligence services are emerging to help financial institutions, governments, and all kinds of organizations delve into who they might be interacting with on the blockchain and uncover “hidden” patterns.
Uncovering Social Gegevens
Spil the popularity of bitcoin advanced te 2014 and 2015, the virtual currency began to fluctuate powerfully spil a result of real-world events and the general public’s sentiment about the technology. Thesis fluctuations are proof that the virtual currency has several characteristics that make it ideal for social gegevens predictions.
“Using social gegevens to predict consumer behavior is nothing fresh, and many traders have bot looking to include social metrics into their trading algorithms. However, because there are so many factors involved te pricing most financial instruments, it can be utterly difficult to predict how markets will switch.”
Fortunately, bitcoin users and social media users tend to align fairly well, and it may be beneficial to use them both for gegevens analysis, spil he further explains:
- Bitcoin users tend to be te the same demographic spil social media users, and so their attitudes, opinions, and sentiment towards bitcoin are well documented.
- The value of bitcoins and other cryptocurrencies are determined almost solely by market request because the number of coins on the market is predictable and are not tied to any physical goods.
- Bitcoins are predominantly traded by individuals rather than large institutions.
- Events that affect Bitcoin’s value are disseminated very first and foremost on social media.
Gegevens analysts are now mining social gegevens for insights into key cryptocurrency trends. This, ter turn, helps organizations uncover powerful demographic information and listig bitcoin’s vertoning to world events.
Uncovering Fresh Forms of Gegevens Monetization
According to Bill Schmarzo, CTO of Dell EMC Services, blockchain technology also “has the potential to democratize the sharing and monetization of gegevens and analytics by removing the middleman from facilitating transactions.” Ter the business world, this gives consumers stronger negotiating powers overheen companies. It permits consumers to control who has access to their gegevens through the blockchain. They could then request pricing discounts ter exchange for exposing gegevens on their private consumptions of a company’s product or service.
Schmarzo also explains how the blockchain may lead to fresh forms of gegevens monetization because it has the following big gegevens ramifications:
- All parties involved ter a transaction have access to the same gegevens. This accelerates gegevens acquisition, sharing, the quality of gegevens and gegevens analytics.
- A detailed register of all transactions is kept te a single “file” or blockchain. This provides a accomplish overview of a transaction from begin to finish, eliminating the needs for numerous systems.
- Individuals can manage and control their private gegevens without the need for a third-party intermediary or centralized repository.
Ultimately, the blockchain could become a key enabler of gegevens monetization by creating fresh marketplaces where companies and individuals can share, sell, and offerande their gegevens and analytical insights directly with each other.
Spearheaded by the large scale adoption of bitcoin, blockchain technologies are gaining ground across the business and financial worlds. The rapid and secure transactions it facilitates could potentially revolutionize traditional gegevens systems. According to a survey by KPMG and Forrester Consulting, one-third of decision makers trust their company’s gegevens. But with blockchain technologies, this trust can be considerably strengthened, and real applications will become much more commonplace.
Original. Reposted with permission.
Bio: Abhinav Venkat is associate VP – consulting at Noah Gegevens.