Blockchain Big Data Options will Change Entire Industries

Big data has been big news for businesses in recent years. The rapid rise in internet use and smartphone technology means we are now generating vast quantities of data every minute. According toone 2016 estimate from IBM, 90 percent of the data in the world was created within the last two years.

Having access to such unprecedented volumes of data comes with both opportunities and challenges. This data can accelerate growth and success for businesses. For example, one telecom provideruses customer location and travel data to create targeted real-time promotions, advertising, and up-sells of its services. In the finance sector, big data analysis can be used to identify and prevent fraud.

Big data requires enormous storage capacity and processing capability. It must also be readable by humans and not just computers. Perhaps most critical -the data being used must be correct in order for it to provide meaningful insights.

Companies such as Google and IBM have developed solutions that address these issues. However, the costs of overcoming big data challenges often put big data out of the budget reach of SMEs. This limits the use of big data to sectors featuring large global players that can afford to invest in solutions with more fragmented industries with smaller players getting left behind.

The emergence of blockchain provides many benefits for big data. Distributed computing eliminates the need for centralized servers to take all of the storage and processing load which reduces the cost of big data, making it more accessible to a broader audience of smaller businesses and enterprises.

Through consensus protocols, a blockchain network can also perform the essential task of validating data for accuracy before it is entered into a database. This ensures that the data can be trusted, and the information is more likely to be adopted by businesses as a decision-making tool.

As the financial sector is one of the leaders in the adoption of big data, it is unsurprising that banks are among the first to start leveraging the power of blockchain in their big data efforts. At the end of 2017, a consortium of 61 Japanese bankssigned withblockchain companyRippleto develop real-time authentication and verification of interbank transfers. With transactions stored in realtime, the banks use big data analytics to examine consumer spending patterns and identify risks such as fraud and money laundering.

Real estate is one example of a sector that has been slow to adopt big data due to its fragmentation and a large number of smaller players in the field. Due to its fragmentation, most data currently bought has no way of being verified by the buyer.

All parties to a real estate transaction are dependent on data to enable it — whether they be buyers, sellers, mortgage providers, insurers or realtors.

Posted on