Blockchain & Big Data: 5 Blockchain And Big Data

BLOCKCHAIN BIG DATA 5 BLOCKCHAIN AND BIG DATA

BLOCKCHAIN & BIG DATA 5 BLOCKCHAIN AND BIG DATA

Big Data and Blockchain are amongst the top rising technologies tipped to transform numerous industries, drastically changing the way organizations and businesses are run. These technologies are not applied independently from each other. When these two technologies are applied concurrently, a lot of good can be realized. Like data science, blockchain is steadily changing the operations of many industries. And while the focus of data science is harnessing data for appropriate administration, blockchain ensures the trust of data through the maintenance of a decentralized ledger (Zikratov et al., 2017, p.535).

One of the critical features of blockchain technology is data integrity. Data recorded on blockchain are trustworthy since they undergo a process of verification that ensures their quality. It also offers transparency because the transactions carried out on the blockchain network are traceable (Zikratov et al., 2017, p.538). For example, blockchain can be used to detect fraudulent documents and digital autographs, whereby computers process these autographs to verify their authenticity via blockchain records.

Most often, data integrity is ensured when details about the origin and transactions related to a data block are stored on the blockchain and are validated automatically before use. Blockchain employs a consensus algorithm for transaction verification, making it impossible for a single node or unit to threaten the data network. If a node begins to act abnormally, it can be easily identified and removed from the network. The distributed nature of blockchain makes it highly resistant to malicious attacks because numerous nodes must collude to alter the system, which is practically unfeasible without majority consensus (Jiang et al., 2018).

Moreover, blockchain data can be analyzed to disclose critical insights about trends and behaviors, enabling predictive analysis to forecast future outcomes. Data scientists can leverage blockchain's structured data to identify patterns related to customer behavior, preferences, or business operations (Shafagh et al., 2017, p.47). The ability to analyze blockchain data extends beyond business applications, facilitating insights in various social and technological domains.

Real-time data analysis is another significant advantage of blockchain technology. In fintech, blockchain facilitates fast, real-time cross-border transactions, allowing banks and financial institutions to process large sums instantly regardless of geographic barriers (Jiang et al., 2018). Such capabilities allow for rapid decisions, like blocking suspicious transactions and tracking unusual activity, which enhances operational security and efficiency. Additionally, businesses that require swift data processing can benefit from blockchain-enabled systems, ensuring rapid insights and prompt action in dynamic environments.

Another critical application of blockchain is data sharing management. Data obtained from various studies can be stored and accessed via blockchain networks, reducing redundancy and mainstreaming collaboration among data scientists across projects. This process prevents the repeated analysis of data already processed by others, saving time and resources. Furthermore, blockchain platforms offer opportunities for data monetization, enabling scientists to trade or license their analysis outcomes stored on the blockchain (Shafagh et al., 2017, p.49).

Challenges and Future Outlook

While blockchain technology holds notable promise for Big Data applications, several challenges remain. Notably, the cost of storing large datasets directly on the blockchain can be prohibitively expensive compared to traditional data storage solutions. As blockchain technology evolves, ongoing research aims to address these limitations by developing more scalable and cost-effective solutions (Shafagh et al., 2017, p.49). As more industries adopt blockchain integrating Big Data, the potential for innovative applications will expand, transforming data management and analysis paradigms.

In conclusion, the synergy of blockchain and Big Data offers substantial benefits, including enhanced data integrity, security, transparency, and analytical insights. As blockchain technology matures, it is poised to significantly impact data management strategies across sectors, fostering more trustworthy and efficient systems. The future of this intersection will likely involve hybrid approaches that balance the need for large-scale data storage with cost-effective solutions, ensuring broader accessibility and application of these transformative technologies.

References

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  • Shafagh, H., Burkhalter, L., Hithnawi, A., & Duquennoy, S. (2017). Towards blockchain-based auditable storage and sharing of IoT data. In Proceedings of the 2017 on Cloud Computing Security Workshop (pp. 45-50).
  • Zikratov, I., Kuzmin, A., Akimenko, V., Niculichev, V., & Yalansky, L. (2017). Ensuring data integrity using blockchain technology. In 2017 IEEE Conference of Open Innovations (FRUCT) (pp. 205-212).
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