Blockchain & What It Means to Big Data
Oct 20, 2017 Posted / 19221 Views
There are various developments in information technology that have made the world a better place to live, but the most significant one is blockchain. Yes, it has the great potential of changing existing financial world. It can also change the people’s approach towards big data. With data quality and enhanced security, it can give financial world a new appearance. Now, come to the big data. It is certainly a great option to go with when it comes to analyzing the large amount of data especially to capture the human behavior. Do you want to know about blockchains and what it means to big data? If you want to grab answer to this most asked question, you should keep reading this informative article.
Before you proceed to identify the relation between big data and blockchain, you first need to know about the same. So, what is blockchain? Actually, a blockchain is a kind of decentralized as well as distributed digital ledger, which is highly used to record all transactions throughout various computers. The main motto behind using blockchain is that records should not be changed retroactively even without the changes of subsequent blocks as well as the collusion of a certain network. Obviously, blockchain plays a significant role in making financial process easier, swifter and more secure than ever before.
Now, come to big data. Without knowing about what exactly a big data is, you aren’t supposed to relate it with blockchain. Incredibly large amount of data sets that could be analyzed computationally to expose trends, patterns and associations, especially associated with human interactions and behavior. Big data is certainly a great option to go with when it comes to revealing certain analyzed data. Here, one point should be noted that lots of IT investment is required for maintaining and managing big data.
The key benefit of blockchain is that it is a kind of decentralized option. It means that no single company or individual controls its integrity or data entry. Here, one point should be noted that the sanctity of blockchains is thoroughly verified continuously by every device or computer on a specific network. Since all points contains the same information or data, corrupt data available at point “A” isn’t supposed to be matched with the equivalent information or data at available points whether “B” or “C”. So, keeping this point in mind, it can be concluded that blockchain can be immutable. So, the information may remain in the same state or position as long as the certain network functions or exists. One of the earliest users of blockchain was online casino and iGaming.
It is an obvious question that may hit your mind when you are advised to go with big data option. If you are confused about the benefits of big data, you need to understand it by analyzing healthcare industry. A healthcare provider or hospital can be a right example for it. Remember, poorly managed and maintained patient data or information may increase the risk of that a patient could be misdiagnosed, treated wrongly, or that medical test outcomes become corrupted or lost. There could be possibility of two different touch points on a specific patient’s treatment journey i.e. a GP and medical specialist may have different database or information for the same patient.
So, putting healthcare industry databases on the blockchain can create a single, unalterable resource for medical practitioners to use especially when they are treating a certain patient. Earlier, healthcare industry is using big data to store most of healthcare databases. But now, if they want added security, they need to unlock the benefits of blockchain.
When you start thinking about blockchain especially in the context of cryptocurrency like bitcoin, its connection to big data may seem a bit tenuous. Now supposed what if, bitcoin could be replaced with blockchain ledger especially for financial transactions? Or it could be used for stock trades or business contracts. Now, financial services world is taking blockchain technology very seriously. According to experts, blockchain technology has the potential to reduce transaction processing time from various days to a few minutes.
The industry imperative in financial solutions for blockchain is really powerful. Now, just imagine blockchain of certain level. Big data lack of blocks that contain the complete history of each financial transaction, so all available for thorough analysis. Remember, blockchain offers for the integrity of certain ledger, but it is not meant to analysis. This is the point where big data as well as accompanying analysis devices or tools come into play.
Here, one example should be illustrated. Recently, a consortium of total 47 Japanese financial organizations signed up with a startup blockchain firm known as Ripple especially to facilitate fund transfers between various bank accounts using innovative blockchain. The key motto behind this move is to attain real-time transfers at a very low cost. One of the key reasons behind why traditional real-time money transfers were highly expensive is double spending. Remember, double-spending is a kind of transaction failure where the same amount of security token can be used twice. So, huge expenses can be the real problem behind the traditional real-time transfers. If you want to eliminate this risk, you need to go with blockchains. Moreover, big data analytics may make it possible to detect patterns especially in consumer purchasing and detecting risky transactions quicker than they are done today. In other words, it simply reduces the overall cost with real-time financial transactions.
Apart from banking industry, most of the other industries too want to get involved into blockchain technology just for security reasons. It is observed that across retail, public administration, healthcare, establishments or companies have started experimenting with innovative blockchain technology to manage data especially to avoid data leaks and hacking.
So, when it comes to blockchain and what it means to big data, it can be concluded that both can help enhancing the security, efficiency and yes reducing the overall cost of financial transactions. Blockchain technology can be a great option for companies seeking a reliable, quick and affordable option for real-time fund transfers.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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