Why Is Blockchain The Next Big Thing For Data Science Industry
New technologies are being made faster than anyone could have imagined. Big data and blockchain are two new technologies that are becoming more common. Businesses are changing the way they do business because of these kinds of technologies. It is assumed that these two technologies can work on their own and are used separately.
But data science is about figuring out what to do with raw and unstructured data, while blockchain technology is a shared ledger that keeps track of business transactions and assets.
As these technologies get better, the amount and complexity of the data they store also get better. By using their full potential, the two technologies have been changed by analyzing this data. This is where blockchain analytics comes in.
Over the past 10 years, technologies based on the blockchain development services have become more popular. A report says that the global blockchain market was worth $2.89 billion in 2019 and is expected to reach $137.29 billion by 2027, growing at a compound annual growth rate (CAGR) of 62.7% from 2020 to 2027.
When the two technologies, blockchain and data science, are used together, the market value is sure to go up.
Let’s Understand The Concept Of Blockchain Analytics!
In 2020, the global market for cryptocurrencies was worth $1.49 billion. By 2030, it is expected to be worth $4.94 billion, with a CAGR of 12.8% from 2021 to 2030.
Wikipedia says, “Blockchain analysis is the process of looking at, identifying, grouping, modeling, and displaying visually the data on a cryptographic distributed-ledger called a blockchain.” The goal of blockchain analysis is to find out useful information about the different people and groups involved in cryptocurrency transactions.
To put it simply, these are the pieces of information that are linked together by time. Blockchain data analysis is the process of understanding, categorizing, and keeping an eye on blockchain transaction data. This gives users valuable insights and makes it easier to figure out how risky something is. With so many ways to analyze data, blockchain analytics is the most promising way to use data science.
Because the data is so open, regulators and law enforcement can see all unauthorized transactions and track the movement of criminals, which helps them catch them. In the same way, people get more information about trends and investments, which helps them make better decisions.
Before we can figure out how it works, we need to know what blockchain and data analytics are.
Cryptocurrency Bitcoin was the first thing that used the Blockchain. Based on how well it did, thousands of other blockchain-based cryptocurrencies called “alt-coins” were made. People say that this technology is like the idea of double-entry accounting. To be twice as sure is sure to change the way business is done.
Blockchain is basically a distributed ledger that keeps track of all economic transactions and can’t be changed.
There are two kinds of blockchains: private and public. Private blockchains only let people who have the right permissions read and write on them. On the other hand, any node on the internet can connect to a public blockchain, and all connected nodes can see information and transactions. In a public blockchain, you don’t need anyone’s permission to look at the information about transactions. The public blockchain includes cryptocurrency.
Data analytics is the process of looking at raw data to find patterns that can help a business decide what to do. With the help of machine learning and other advanced ways to use and analyze the data, it gets knowledge and insights from both structured and unstructured data.
The organizations’ growth machines are powered by the data they collect. In a number of business applications, this data is mined, organized, and cognitively analyzed. For example, data science is used in the healthcare industry to track patient care and the flow of equipment. It is also used in the travel industry to improve customer service and experience, among other things.
How Blockchain and Data Science Work Together?
Not much has been learned about this area. But what both technologies have in common is that they are based on data. While blockchain stores and verifies data, data science provides insights that can be used to solve problems and make decisions.
Both technologies use algorithms to make data segments talk to each other. In a nutshell, data integrity is what blockchain is for, and data science is for making predictions.
How does Blockchain Affect Data Science?
As you can see from what has been said so far, each technology has its own benefits, with data at the center. When you put them together, you’ll get a new layer of data that meets the following basic needs:
The network architecture of blockchain technology can be used to protect the data that is made by data science.
Blockchain data is more organized, has a lot of it, and is ready to be looked at in more depth.
Combining the benefits of each technology can save money by storing and analyzing data using blockchain technology, which can store data for a long time.
Here are some ways that blockchain will make data science better.
Allows Data Tracking
Blockchain makes it possible for people to talk to each other. This means that if one account can’t explain the published method, the other peer can look at it and analyze and review it from beginning to end to figure out how the results were reached.
Blockchain lets users track data through clear channels in the ledger, from the point of entry to the point of exit. The user learns which data can be trusted, how to store and update it, where it comes from, and what it is used for.
Allows for Real-Time Analysis
It is very hard to analyze data in real time. Blockchain technology, on the other hand, lets companies analyze data in real time and in a way that makes it easy to spot any problems early on.
Blockchain development consulting also lets two or more people work on the same kind of information at the same time. This is similar to how spreadsheets let different users make changes and evaluate them in real time.
Ensures Data Accuracy
As was said above, data on a blockchain is kept in both private and public nodes. Before the data is added to other blocks, it is looked at and checked at the entry point. In and of itself, this is a way to check the data.
Makes it Easy and Smooth to Share Data
The organization works well because information flows easily and smoothly. Keeping track of data on paper is not only time-consuming but also hard to do.
When it comes to how and where data moves, blockchain technology is very interesting. It is easy to view, send, and access in real time, which means that two or more people can use it at the same time.
Having a smooth, easy, and unrestricted flow of data makes it easier to run the business.
Improves Data Integrity
Today, organizations are very careful about whether or not data is real. In the past few decades, the problem was how to increase the amount of data that could be stored. By the end of 2018, this problem had been solved thanks to technological progress. Then came the problem of keeping data safe and making sure it was correct.
Since the data comes from many different places, it is very likely to have mistakes, duplicates, and other mistakes.
Blockchain technology is a relief because it makes sure that all of the data in each block of the chain is correct. Blockchain technology is being used by businesses because of how secure it is. At every block, multiple signatures on the records of the decentralised ledger are used to check and double-check the data. At every step, access will be denied unless the signature matches exactly. So, the chances of data being hacked and leaked are much lower.
Here are a few of the security features of blockchain that help data science.
Blockchain uses complicated mathematical algorithms to encrypt every ledger transaction. These are digital contracts between the parties that can’t be changed or undone.
Details about organizations are often kept in data lakes. The source of the data is used by blockchain to put it in a certain block with a certain cryptographic key. Having the right key to the source of the data makes sure that the data is accurate, of good quality, and real.
As the number of people who use blockchain technology grows, so does the importance of blockchain analytics. No longer is it a dream to have clear, unchangeable access to the ledger transactions. Thanks to data analytics on the blockchain!
This technology has already been used in digital finance, food safety, healthcare, tracking weapons, and other fields. Soon, the benefits will also be seen in other industries.