Big Data & Blockchain: A Ground-Breaking Collaboration
The radical shift in digitalization has led to an increase in the global data traffic at an unprecedented rate. This has given rise to a “special interest” in Big Data by companies of various industries. The current era of digital transformation has been so impactful that it has compelled every industry to embrace automation and work in a manner that is smart, efficient and productive. This is where the role of data begins. Data is that prerequisite which is needed to make processes smarter and faster.
Big Data is defined as a huge and diverse set of information that is growing at an exponential rate. Every time you send an email or get a heartwarming comment on your newly uploaded picture on Social Media, the universe of Big Data expands. This universe has grown and become so enormous and complex that it has become nearly impossible to process using traditional methods. This plethora of information is utilised by various vertical industries to ensure that their products and services reach the market at faster speeds and at reduced costs. Due to its multiple uses that ultimately lead to successful operations, Big Data is a technology that is becoming popular among companies and gaining more and more traction with each passing day. As data becomes the new treasure trove, the role of Big Data in the expansion of a company has increased significantly.
According to the research report of Global Forecast to 2025, the global Big Data market is going to grow up to USD 229.4 billion by 2025 whereas the compound annual growth is expected to be 10.6%.
But… Every bean has its black!
Big Data, Big Challenges
Being one of the fastest growing sectors in the world, Big Data grabs the attention of every possible industry. Through Big Data, companies can get the much desired valuable insights into the usage patterns of their consumers. These insights can further help companies to make better decisions and strategic business moves and keep them updated with the emerging market trends. Not to forget, all these things give companies multiple advantages over their competitors.
Since Big Data is all about volume, velocity, variety, variability and veracity, there are various challenges associated with Big Data techniques and applications. To start with, the privacy and security of such massive data is a big challenge. To understand this, we need to first understand that every second some data is being generated and for companies, maintaining regular checks is a strenuous task. Although to reap the most benefits of Big Data, companies need to perform security checks and observations in real-time. As the universe of Big Data expands at a speed that is faster than light and the web of connected devices grows larger, it leads to potential security breaches to a company’s data. Additionally, companies collect personal information about people that might be sensitive and not worth sharing.
Moving forward, another hurdle that comes in the way of Big Data is accessing and sharing of data. For companies, accessing data from external sources poses as a huge problem. Once the data is accessed from various sources, sharing this data requires the need for inter and intra-institutional legal documents. Furthermore, the data that is collected should be in a clear, complete and timely manner so that the companies could make accurate decisions that work in their favour. Energy management, scalability of computing infrastructure, data interpretation, data management and Big Data intelligence are some more challenges that require immediate attention for the technology to be successful and derive meaningful results.
How can Blockchain be a helping hand?
Currently one of the most prevalent and disruptive technologies, Blockchain, also referred to as Distributed Ledger Technology (DLT), is a shared, immutable database or ledger that facilitates the process of recording transactions and tracking assets in a business network. It works by recording each transaction as a ‘block’ of data, as it occurs. Any new data that is added is stored in a new block but each block is connected to the ones that were recorded before and after it. These blocks form a chain of data in chronological order, confirming the exact time and sequence of transactions and restricting any new block from being inserted between two existing blocks.
Some of the most essential features of Blockchain are listed down below:
1. Decentralization: Being a decentralized technology is blockchain’s biggest strength. The network is not controlled or governed by a single person or authority, rather it allows all the participants present on the network to access the blockchain through the web and store their information using private keys. The immunity of the blockchain is continuously verified by every computer on the network. Through this decentralized approach, blockchain ensures that the security and privacy of data are intact.
2. Distributed: Blockchain is a shared or distributed ledger system, where each transaction is recorded in a way that cannot be manipulated. As stated earlier, each transaction is recorded as a block of data. This block of data includes the entire transaction history for that entry, making it almost impossible for anyone to alter or manipulate the data. Since it is a distributed network system, the same information is shared network-wide, making it highly secure against hacking and data leaks.
3. Immutable: Data that is generated via blockchain is structured, complete and immutable. Once a transaction is recorded in this system, it can never be changed by anyone and has to remain in the same state for as long as the network exists. The immutability of data becomes an important factor for companies that are concerned with Big Data. Any modification or manipulation with the data is bound to result in inaccurate analysis.
Benefits of Collaboration of Big Data with Blockchain
Governments and private corporations share a keen interest in the collaboration of Big Data with Blockchain Technology due to its potential to solve real-world problems. In a world where the number of online transactions is increasing with each passing second, it becomes crucial for corporations to correctly analyze this digitally generated data. This data can help provide invaluable insights into the purchasing patterns and needs of the customers. But securely storing this data which is constantly expanding, presents challenges of its own. This is where blockchain technology comes into play. Blockchain technology’s unique features like decentralized storage, transparency and immutability can help in overcoming the challenges that are associated with Big Data.
The interception of these two ‘B Heroes’ would result into the following benefits:
1. Strengthening of Data Security & Privacy: When it comes to Big Data, data security and privacy are two major issues which arise due to the volume and variety of data that is being generated. To tackle this challenge, blockchain technology offers infallible security to store information. Since the system is decentralized, no single person or authority has control over the transactions being made. This guarantees that no information can be altered without the approval of everyone present on the network. This brings transparency into the entire system and leaves no scope for fraudulent activities.
2. Fraud Prevention: Detection of fraud and other risks is still a prevalent issue in the financial sector mainly because existing detection and assessment methods depend on historical data. With the advent of blockchain technology into the financial sector, institutions would be able to monitor each transaction in real-time. This would allow them to prevent frauds by identifying potential risks before they even take place.
3. Improving Data Integrity: Blockchain technology can help prevent tampering with the datasets which is usually done with some malicious intent. With its immutability feature, blockchain ensures that it is impossible to alter any data that is already stored on a blockchain network. Also, the data that is stored on a blockchain network automatically becomes more reliable as it goes through an extensive process to ensure that the quality of data remains intact.
4. Simplifying Data Access: Since blockchain is a decentralized ledger with no single person or authority governing it, data storage and processing become much more quicker and efficient. This data can also be easily accessed online by authorized employees working in the company without having to go through multiple other permissions and security checks.
5. Better Data Sharing: Big Data that is recorded and stored on a blockchain network becomes much easier to share. The service providers can share data with other parties without worrying about any sort of data leakage. Also, storing Big Data on blockchain ensures that there is no repetition of data as each and every transaction is being recorded on the blockchain network.
6. Improving Data Quality: Recording data on a blockchain network helps data scientists to shift their focus and efforts from data integration to better data analysis. Since the data that is stored on a blockchain network is complete and structured, it enhances the quality of the data. This data then assists companies to make more accurate predictions in real-time and take decisions that work completely in their favour.
