Big data and blockchain have been some of the most popular buzzwords in the digital world. While the two are often considered to be distinctly different, combining them could be a winning formula for small businesses. Read on to find out how blockchain and big data will transform business processes in the future.
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Trust through Seamless Data Quality Management
Big data can provide a wealth of information to improve business processes. However, organizations working with large data sets have to verify the data’s authenticity. Otherwise, errors can have an impact on your brand’s image.
Integrating big data with blockchain enables businesses to conduct audit trails seamlessly. Since blockchain is a trustworthy ledger, it boosts the integrity of the data.
Blockchain and big data enhance data quality management to facilitate transactions and operations. Therefore, it opens up more opportunities for businesses of all sizes to thrive in the booming digital world.
Reduce the Costs and Time Effort for Company Operations
Blockchain and big data also enable faster transfer of information, especially between departments. The blockchain is a decentralized ledger, and the ecosystem verifies transactions in real-time. Through its interconnected links, the blockchain can validate data almost instantaneously.
As such, blockchain technology eliminates data validation bottlenecks and facilitates communication between departments in the organization. The technology allows business to leverage their computing resources to reduce the time and effort it takes to complete operations.
Decentralization Enhances Security and Privacy
One of blockchain’s advantages is that it is a decentralized ledger. That means no single corporation or institution can control it. Decentralized computers from across the globe verify the transactions. Since the decentralized ecosystem is not under any organization, it boosts the consumer’s confidence in your business.
The primary disadvantage of the blockchain ecosystem has been the proof-of-work resources it requires. According to statistics, Bitcoin mining consumes 91terrawatts of electricity annually, equivalent to Finland’s yearly electrical consumption.
Recent proof-of-stake algorithms run on a multi-layer design platform with lower computing-power demands. For example, Cardano (ADA) is less energy-intensive and can complete transactions faster than Ethereum.
Future proof-of-work ecosystems may adopt algorithms similar to Cardano to enable faster and cheaper transactions. Improvements in transaction costs will allow small businesses to deploy smart contracts using their existing computing resources.
Identifying Emerging Market Trends
Small businesses can also combine machine learning models with blockchain to make market predictions. Big data allows machine learning algorithms to find patterns from large sets of information.
The value of blockchain for big data is that it can verify large data sets quickly. That means small businesses can analyze trends in real-time and make prompt decisions to increase revenues. For example, machine learning algorithms can determine the time of day your customers are most likely to buy a given product. Because the blockchain verifies data rapidly, your business can make timely inventory adjustments to ensure a consistent supply.
Also, immediate action is critical in some instances, such as in preventive maintenance or fraud detection. The fast speeds of blockchain-verified ecosystems reduce delays to unlock new possibilities for security and productivity improvements.
Blockchain technology provides a robust verification system, while big data finds patterns and emerging trends. By integrating the two, you can cut the costs and the time it takes to complete transactions. Machine learning and distributed ledgers will continue to open new digital opportunities for businesses of all sizes.