What will the concoction of blockchain and Big Data result in?
The paradigm ‘Master of information, master of situation’ doesn’t work anymore. The vast volume of information we currently have an access to is just chaotic symbols without analytics. Big Data makes massive amounts of information understandable.
Read the article to find out why Big Data became mainstream, related problems, and how blockchain would fix them.
Nature of Big Data and why it is around
Big Data is a complex of methods for processing structured and non-structured data with >100 Gb volume. This data is available on multiple resources: social media, e-books, GPS signals sent by means of transport, block databases, mobile networks, etc.
Donald Trump presidential campaign is one of the most successful case studies of Big Data application. During the presidential race, he cooperated with Cambridge Analytica focused on Big Data in the development of strategic communication during the electoral processes. Roughly speaking, they pitched information about every American and divided it into groups including such segments as ‘mood’ and ‘hobby’, not only traditional ‘sex’, ‘nationality’, and ‘social status’. Trump’s speech was not empty words. It targeted the particular audience with foregone expectations.
In Ukraine, services of Big Data processing are offered by telecoms operators Vodafone and Kyivstar that pass the needed information to state structures, in particular. For instance, in 2018, Kyivstar investigated how the citizens of Ukraine’s capital move and evaluated the city’s traffic. Thus, the local authorities defined the districts with the most loaded traffic and equally distributed transport in Kyiv.
It should be noted that clients never receive the full information but only out of the box result of the analysts, recommendations for data usage. Taking into account this approach, it’s impossible to understand whether the information is reliable, confidential and worth the money paid. Well, blockchain is the way-out.
Why Big Data should be confidential and blockchain’s role in it
For example, the entertainment company Sony Pictures suffered losses estimated at billions of dollars in 2014. Not only part of information about the company (scripts, accounting calculations, casting results) leaked but staff personal data including addresses, passport and insurance numbers.
The DLT would have prevented it. It’s almost impossible to break the blockchain-based system since in most cases hacking of a 16-character key is not worth the expenses involved.
Global cyber crime rate is expected to reach $2 bn by 2019. That is why data privacy remains the burning issue.
Quantity doesn’t mean quality. How blockchain will boost information reliability in Big Data
There are several vulnerable spots in the traditional network where fraudsters can enter false data damaging all the rest files. Thus, they spread unreliable information that bustles analysts when processed.
Each transaction in the blockchain becomes encrypted. Moreover, its time is also recorded. Roughly speaking, there exists a universal document for each node. If a user makes a mistake, the document will not be recorded because other services will redirect it.
How will blockchain decrease expenses on Bid Data generation?
A vast volume of data needs storage. In most cases, companies hold the information in cloud storage like AWS or Google Drive. They also use local services. The former is hack proof and low-budget. Local services are safe but expensive.
Blockchain is a happy medium. Copies of databases or their parts are simultaneously stored on multiple computers. What is more, they synchronize so it’s almost impossible to hack such a system, and it doesn’t require a fortune.
Besides, double-spending is a problem occurring during the data transfer in real time. It means a transaction failure in which the same security token can be spent twice. Blockchain and Big Data are a perfect solution to this issue.
Big Data would help analysts work out the biggest number of possible risky transactions while blockchain would accelerate data processing. Therefore, the concoction of the two technologies makes transactions cost-effective.
As McKinsey predicts, blockchain tech would help financial companies save up to 30% within three forthcoming years, which is estimated at about $110 bn.
Find out about other advantages of blockchain technology at the international event Blockchain & Bitcoin Conference Kyiv scheduled for September 19, 2018.