Today, the relationship between big data and blockchain technology is getting closer. Someone may ask, big data is aimed at the processing of massive data, and blockchain technology is a network technology that realizes content sharing and peer-to-peer transactions. What is the connection between the two? It is true that the two are just different data solutions in different scenarios, but with the advent of the sharing economy era, the combination of the two will bring huge advantages and a wide range of application scenarios. Let's take a look below.
1. What is big data?
Big data, as its name implies, refers to massive amounts of data and data. The characteristics of big data are large amount of data, very rapid generation, low value density, and diversity of data. Generally speaking, the core of big data lies in its value. We can use data analysis to prevent dangers, crimes and other situations, and can also assist certain business operation decisions to drive business. In finance, e-commerce, retail, information, new media, and artificial intelligence, we can all see the results of big data applications.
2. What is blockchain technology?
In layman's terms, the blockchain is a general ledger that records all historical transactions, and each block contains several transaction records. If the blockchain is a ledger, then a block is every page of the ledger. The details of the transaction are recorded in a public account book that anyone on the network can see. Blockchain reduces the uncertainty of economic system operation. The functions implemented by the blockchain in transactions include: identity management, asset tracking, transaction guarantees, and so on.
3. The relationship between big data and blockchain technology
1. The advantages of combining big data and blockchain technology:
(1) Ensure data security
The blockchain does not upload data to the cloud server, nor does it store the data in one place, but divides all the data into small parts and distributes them on the entire computer network. It effectively excludes the middleman. There is no need to use a third party to process transactions. When you can rely on a decentralized, non-tamperable ledger, you no longer have to trust the supplier or service provider. In addition, everything that happens on the blockchain is encrypted and it can be proven that the data has not been changed. Due to its distributed nature, it is possible to check the file signatures of all ledgers on all nodes in the network and verify that they have not been changed.
(2) Guarantee the quality of data
The superior data security and data quality provided by the blockchain can change the way people handle big data. This is very useful because security is still the main concern of the IoT ecosystem. The IoT system exposes various devices and large amounts of data to security vulnerabilities. The blockchain has a strong potential to prevent hackers from intruding and provide security in many fields from banking, healthcare to smart cities.
(3) Protect user privacy
This is one of the main differences between the blockchain and today's common traditional technology model. The blockchain does not require any identification at the network layer itself. This means that no name, email, address or any other information is required to download and start using the technology. Not strictly requiring user personal information means that there is no central server to store user information, which makes blockchain technology more secure than a central server that may be compromised, and does not put users' sensitive data at risk.
(4) Keep the data transparent and open
One of the most attractive aspects of blockchain technology is its privacy. However, this has caused some confusion about how privacy and transparency can coexist effectively. The reason why the blockchain is transparent is that the holding and transactions of each public address are public. Use the resource manager with the user's public address to view their assets and transactions. This kind of transparency has never existed in the financial system before, especially in the case of large companies, and adds to a degree of accountability that has not yet existed.
2. Application of big data and blockchain technology
(1) Reduce financial crime
Blockchain technology and ledger technology can increase the transparency of regulators and improve the reporting process. Considering that the transaction history cannot be changed, the ledger is also shared and cannot be tampered with. At the same time, the ledger can also be used as a data storage center for processing transactions. It can carry out activities with risk managers from financial services companies and regulatory agencies. On a decentralized network, identity management based on encryption technology can be improved. Moreover, improving digital identities can help financial institutions meet the ever-changing "know your customer" and "customer due diligence" requirements.
(2) Guarantee privacy and safety
Blockchain technology exists in all areas of life, from banking to healthcare and other industries. Moreover, network security can benefit a lot from blockchain technology, and the future profit space will be greater. At the same time, by reducing most of the human factors in data storage, blockchain significantly reduces the risk of human error, and human error is the most important cause of data leakage. The reason why this technology is so popular is that any digital asset or transaction can be incorporated into the blockchain, and the industry is irrelevant. In addition, blockchain technology can prevent any type of data leakage, identity theft, cyber attacks, or fouls in transactions.
(3) Artificial intelligence system
In terms of financial transactions, the blockchain has suddenly become a big success and will become an important aspect of currency transactions. Big data and blockchain can simultaneously provide powerful products for the financial services industry in many other innovative ways. Through blockchain technology, auditing can be enhanced in a very thorough way.
Big data and blockchain technology are a major development trend in the future. The two complement each other and promote each other to create a more secure network information environment. The analysis of the relationship between the two is here. If you want to learn more about big data and blockchain technology, it’s a dark horse programmer.