We all know the big data is a massive technology, which has been considered as a highly technical concept over the years. The modern era of digital world have given full access to big data in order to lead the digital transformation of various industries and nations across the globe. Big data is not, just like that concept, it is an ocean of interesting data science methods to understand and to implement. As I said above, big data is already started to revamp many interestries and platforms like artificial intelligence, ecommerce, IOT, Banking, Government, SCM, CRM, healthcare, dbms, education, agriculture and more. Just like this, there is a another huge technology creating huge impact all over the world.
( i.e) “The Blockchain Technology”.
Just like big data, the blockchain technology is also creating its master level influence on more than 20 + industries including, banking, healthcare, education, finance, insurance, supply chain and more across the world.
So today we are going to cover up a huge concept, (i.e) The knot between big data and blockchain. Also we are gonna discuss how these two technologies are taking responsibilities in digital transformation of the world by exploring their powerful use cases together.
First of all let us understand what is blockchain,
Blockchain, is a decentralized technology, powering the cryptocurrency world. In general, blockchain has been recognized as familiar distributed public ledger technology. Blockchain is a connection of individual virtual blocks, where each block is taking responsibility to store and access the information of cryptocurrencies & their transactions. Know more about blockchain technology here : what is blockchain technology
Blockchain has came to limelight after the success of popular cryptocurrency “Bitcoin”. Followed by bitcoin there are several altcoin have been invented in cryptocurrency, where as all the new cryptocurrencies are made to underlie the public ledger technology of bitcoin, that is blockchain. After that to get separated from bitcoin, ethereum has been introduced along with its own blockchain. Then, this kind of creating separate blockchain for cryptocurrencies is continued to grow inside the blockchain network. After that, the powerful use case of blockchain, have made to take it out from cryptocurrency industry and avails for industrial level usability.
By recognizing this immense technology, industries and organizations have started to adopt it, in order to tighten their security, privacy, transparency and accessibility inside a closed network. This paved the way for emergence of Private blockchains. You can check out the most notable industries which are powered by blockchain here. 9 Industries which are distributed by blockchain.
Hope we have given enough introduction to the blockchain, so let us move to the next segment of this article where we are gonna discuss how blockchain and big data works together, where they actually get connected, what are the use cases big data in blockchain, impact of blockchain on big data, Big data challenges. big data blockchain projects,
We all must have to understand both the technologies are dealing with data. Blockchain is in terms of ensuring the data storage, privacy and hence to increase the data integrity, where as the big data deals with data in terms of ensuring the data quantity, variety ,velocity in order to bring better predictions.
So simply we can say like this,
● Big Data Ensures Data Quantity
● Blockchain Ensures the Data Quality
Quantity and Quality are very important when the handling of data is large hence risky. So, the only place where these two technologies can meet each other is, if there is a need of ensuring both data quality and data quantity. Large scale businesses like GAFA’s ( Google, Amazon, Facebook and Apple) are often facing inconvenience in data management, as they are in the control of huge data. So this kind of business are must have to deal with two big giants on time to ensure the security level of their business data and drive their business in the right direction with better predictions.
Inorder to understand the impact of blockchain in big data, We just have to understand the challenges of big data. Just like every other industry, big data is also facing some technical challenges and looking for a better solution that could pave the way for it. Big data is already in the top of the superior level technologies list, so in order to enhance such technology and driving it in a smooth manner, there must be a another superior level technology. So, while finding a way to resolve the challenges in big data industry there is no way, only blockchain has could be the pain killer for the risks in data science. So, the big data industry ought to incorporate blockchain for better data analysis.
Security Challenge : Data’s are highly insecure when they stored in a centralized server,so there is a big chance for data hacks to occur while we handing large amount of data in central cloud servers.
You can check out the list of cyber security and data breaches occurred in 2019
Reference : varonis
Handling The Quantity: The word big data is enough to explain this, as day passes, the floating of data attains an exponential growth everywhere. This becomes the risk for enterprises to handle data in one singlre or in multiple servers.
Identifying the Malicious Data : As the data’s are in heavy in volume, it is very time consumptive to segmentize the dirty data and filter out the real data. This is like finding a black paper in a dark room. According to a report by kaggle on 2017 among 16,000+ data professionals, 49.4% of answers denoted that the biggest challenge of data science industry is identifying the inclusion of dirty data ( unwanted data)
Ref : kaggle
Understanding The Type of Data : Big data is a collection of structured and unstructured data. In just 10 years we have gone through a massive digital growth. People are using smart devices, website and applications, hence this results in inefficiency of identifying what kind of data is, and segmenting it into a certain data panel.
Innovation of New kind Of Data analytics Tools and Softwares
As data’s are getting varied in volume,velocity, and variety, big data scientist have to adopt with a big data tool that could be apt for handing a certain kind of data sets. Check out the top 20 big data tools 2019.
Meeting the Time frame
Data have to be handled on time, because every second the world is generating billions of data in terabytes. So if we missed out a milli second the data will be dumped in to existing data sets. According to big data analytics it is a very risky from the beginning, data analyst have to analyze data on time to bring better predictions.
Businesses have to invest a separate amount in order to setup a data warehouse and proceed data acquisition, ETL, data validation, data modeling, data visualization and etc. Whenever the data floating increases it increases the cost of data Management.
Blockchain - A rescuer of big data risks and challenges, we have listed around 7 big data challenges above, but the most important challenges are Security, Handling the Quantity and Identifying the Malicious Data. If we can sort out these 3 challenges, then we can easily overcome the other challenges. Blockchain is found to be the remedy for fulflling big data with security, quantity, and dirty data identification.
1. Security - This is the top most asset of blockchain ever. Data’s inside the blockchain are non tamperable
2. Transparency In Tracking - The another biggest challenge of data analytics is unable to find the origin of a data. The increased transparency nature of blockchain can easily find from where a data started to flow.
3. Data’s are Stored in Decentralized Environment - No chance for hacking, as the data’s are stored in a distributed decentralized server. So there is no chance to hack data, without getting validated by each node.
4. Flexibility In Handling Various Data - Blockchain Doesn’t restrict data in terms of it type, it can store and hold any kind of data.
So by combining all these primary nature of blockchain it could create a fruitful relationship with big data.
Refer : blockgeeks
Blockchain is adding kind of characteristic for data while proceeding data analytics process. It results in Blockchain generated big data, which is secured, and can’t be hacked as it is tightened with network architecture..Blockchain based big data, is become more valuable as it can easily differentiate structured and unstructured data. .
Reference : towardsdatascience
1. Blockchain ensures Data integrity and hence trust
As blockchain goes through a detailed verification process in order to store a data, it ensures the data quality and integrity
2. Ensures data security
It is impossible to possess a data hack in side the blockchain networks, as the entire networks verifies the data with a certain consensus algorithm.
3. Increases Computational power in predictive analytics
As blockchain integrates structured data in one place, it becomes easy to compute the data and bring better insights.
4. Real Time Data Analysis Become possible
As blockchain provides fast and real time processing access to the data, enterprises adopts blockchain to proceed real time cross border transactions.
5. Provides access to data sharing
As data’s stored in blockchain is accessible for everyone, it prevents data processing teams to proceed data analysis on already analyzed data and reusing them
According to infoworld, The worth of blockchain ledger could be nearly 20% of toal big data market in 2030, and will cultivate a massive $100 billion as annual revenue. Refer https://www.infoworld.com/article/3203748/what-can-be-uncovered-when-big-data-meets-the-blockchain.html
Real life example of Big data with Blockchain
In japan banking sector they have made a consortium along with the involvement of 50 banks and have made an arrangement by prioritizing the Ripple cryptocurrency. They have remodel their entire traditional banking system by capitalizing ripple with blockchain technology. This incorporation of banks in blockchain can produce a vast amount of data. Japan banking sector have made special concern in order to lighten the data efficiency in transactions. Ref : https://bigdata-madesimple.com/introduction-to-blockchain-technology-and-what-it-means-to-big-data/
Other Big Data Blockchain Project You Should Know
Hope we have covered a variety of information about big data in blockchain, Also we have understood the use cases of big data with blockchain. The intersection of these two giant technologies sure will take a deep part in digitizing the world in future.
Get a free consultation from our experts on integrating big data with blockchain projects.