Widespread internet connectivity and smart devices led to a rapid rise in technological innovations in computer science. Data now ranks among the most important assets of a company. It is easy to realize why Big Data has gained such a presence in the global markets. Companies analyze through massive amounts of data to gain actionable intel beneficial to their growth. In comparison, the newly-arrived blockchain’s widespread implementation scope makes it one of the top 3 disruptive technologies. The foundational principle of blockchain is collaboration instead of competition. As we dive deeper, we will realize why blockchain and big data complement each other perfectly.
Blockchain for Big Data Storage
The rising adoption of cryptocurrencies in combination with real-world blockchain applications leads to an exponential increase in the size of transaction data stored in different ledgers. Storage solution options from cloud service providers like AWS or Azure are really expensive. Blockchain pilot projects have successfully demonstrated a 90% cost savings from AWS and other cloud service-based expenses.
Blockchain for Payment Processing
Around 50 Japanese banks formed a consortium joining forces with Ripple, the world’s 3rd largest open-source blockchain network by market capitalization. The primary objective of this partnership is the implementation of blockchain technology to facilitate riskless transactions at lower expenses. Traditional payment processing services incur high expenses due to multiple intermediate check stops. These stops also increase the time taken to process a single transaction.
Payments processing solutions from blockchain development specialists HashCash Consultants expedite the process reducing the associated costs to a minute fraction. Blockchain also helps in the elimination of risk factors like double-spending.
Mixing Blockchain with Big Data
Blockchain incorporation in analytics improves the process with the addition of an extra layer of data. The data layer complies with the 2 primary requirements of Big Data analysis:
- The derived data is secure. Owing to the network architecture, Blockchain-powered Big Data can not be forged.
- Data generated from blockchain-powered Big Data is well-structured, organized, and valuable. The dataset is complete in itself, allowing options for further analysis.
Data stored in the blockchain ledger can be easily used across multiple domains such as energy trading, property and real estate, finance, and many more. Several recent data analytics innovations have benefitted greatly from blockchain’s versatility. Blockchain’s inherent characteristics ensure fraud prevention, empowering financial organizations with the ability to monitor transactions as they happen. Banks are thus able to identify potentially risky transactions in real-time and prevent the occurrence of fraud.
In terms of market valuations, both blockchain and big data are growing at a rapid pace. Estimates suggest information stored within decentralized ledgers will reach up to one-fifth of the global Big Data market, and generate annual revenues worth USD 100 billion by 2030.
Blockchain and Big Data are perfectly compatible with each other. Not only that, they help in increasing overall efficiency. The future looks bright as technology continues to progress at a rapid pace. Tech giants over the world are racing to offer the most optimal AI/ML model working on top of data stored on the blockchain network. The immutable, transparent nature of blockchain’s distributed data will translate well into business, generating great returns for businesses embracing blockchain-powered Big Data.