Blockchain technology has received a lot of hype recently. Although, it is a product of 2011, the cause of recent popularity is that many financial institutes and organizations are using blockchain technologies and benefitting from it. Similarly, big data has been a trending technology for more than a decade. It is not a recent invention, but it has become popular only since the beginning of the 21st century.
Understanding Big Data and Blockchain
Big data refers to the technology that helps manage colossal datasets. This includes creating data pools, managing them, analyzing them, etc. Blockchain is a technology that aides in financial transactions between different parties using cryptocurrency called Bitcoin.
- Big data can be identified on the basis of the 3Vs that refer to volume, velocity, and variety. In simple terms, the data should be available in huge quantities that can be processed a high speed. The data can be available in different formats or types.
- Blockchain works with blocks that are linked together to complete a transaction. Once a block is initiated, it needs to be verified by various involved nodes and parties who authenticate that the transaction is valid and complete the transaction.
Now, looking at the two technologies, they seem to be catering to different needs of an organization. While big data primarily deals with data which might include content of different types, or variety of files; Blockchain is related strictly to financial transactions.
Where Do These Meet?
At a superficial level, there would be no relation between Blockchain and big data. But, when we ponder a little, we can understand that these Blockchain can be considered a variant that deals with big data.
- Blockchain is considered a safe way for initiating and completing financial transactions. In this case, big data analytics solutions and services play a role in determining customer patterns and identifying risky transactions.
- The blockchain technology is based on blocks that represent the transaction and there are numerous blocks involved in completion of a transaction. The volume of these block creates big sets that are data pools.
- The transactions that are completed using the blockchain technology are recorded and thus, a type of a database is created. The increasing number of transactions result in increasing data records which form data lakes required in big data analytics.
- The data and user profile enable predictive analysis which is also a big data tool. The predictive analysis is helpful in lending the required security to the transactions and eliminating the vulnerability that traditional financial interactions undergo.
The rising popularity of blockchain has also created a demand for analysts, scientists, and consultants who are familiar with big data as well. As simple as it may sound, blockchain is a complex technology with a lot of questions around it. This means that the future prospect for people who have a clear understanding for the two are good.
Both big data and blockchain have been trending technologies in this decade and have been complementing each other very well. It is important to remember that big data is a well-placed and established technology that has already created a customer base for itself. While blockchain can bank on big data’s popularity, it in itself is a success so far.
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