Talking about blockchain or chain of blocks can cause surprise, since outside the technological field it is still a little known term.
Basically, it is a distributed database in which all nodes participating in the network keep an identical copy of that network . While some associate Blockchain with cryptocurrencies, few are aware of other applications of this technique, such as data processing. The 7 Vs of “big data” technology – Learn More of This
Blockchain applications go far beyond digital money, therefore, it is revolutionizing all sectors. Some consider that the blockchain is the greatest technological advance since the arrival of the internet . Others consider it one of the technologies of the future , along with big data. Recruitment 2.0: innovation in human resources.
The role of blockchain in data processing
Basically, as we have mentioned, the blockchain is a distributed database and each of its nodes has a copy of the entire network. The key to this technology is consensus : if all nodes have the same information, that information is true.
The blockchain allows to develop a large volume database and distribute it in tens, thousands or millions of nodes to compose a large decentralized P2P network . It is an immutable log book that contains the complete history of all transactions that have been executed on the network. CDO: the strategic vision that data management needs
Between themselves, these nodes transmit tokens , a representation of information about any type of asset, good or service, so it can be applied to any transaction that requires verification (making purchases, participating in voting, contracting insurance, etc. ). Information, of course, travels encrypted . Thanks to this it can be distributed without security problems.
Token transfers are grouped into blocks that are generated from time to time. New transfers that have not fit in one block are grouped into the next one, which is inextricably linked to the previous one, and so on. Hence its name: blockchain .
The arrival of the smart contract thanks to the blockchain
The design of a blockchain is immutable and secure by definition . In practice, it offers, among other things, an improvement in the security of information and our data , and the elimination of intermediaries .
If all the users participating in a network have the same immutable information and in which every transaction must verify by consensus the majority plus one of the rest of the nodes, why are intermediaries needed? The very architecture of the network means that It is impossible for anyone to alter the information on the records retroactively , since the same transaction is recorded in multiple distributed database systems. Tips for implementing an effective customer scorecard
The ability to execute smart contracts is one of the most interesting features of the blockchain. Thanks to these programs that execute agreements established between two or more parties, certain actions occur as a result of the fulfillment of specific conditions. That is, when a pre- programmed condition occurs , the smart contract automatically executes the corresponding clause. A true revolution in data processing.
A technology like this , with the ability to ensure that the information remains in the same state as long as the network exists and with the ability to execute smart contracts, is very attractive and beneficial for certain sectors. For example, for the financial or insurance sector, and it is also having a strong impact on big data , as we will see below. Why is the brand ambassador the most powerful branding resource?
Big data and blockchain: the perfect union
The combination of blockchain and big data can become the perfect union to ensure the protection of any database .
The massive amounts of data that make up big data have made it necessary to use a number of new techniques that have transformed data processing. Even so, these techniques still raise some questions , especially when it comes to data security :
- Who are the true owners of the information that users provide?
- How can users know for what purpose their information will be used?
- Who will have access to that information?
- Can organizations keep the source of their data anonymous?
On the other hand, the blockchain provides integrity , but does not guarantee analysis . That’s where big data comes into play. Therefore, among the potential benefits provided by the integration of the blockchain in the big data ecosystem, the following could be highlighted:
- Confidence . As we have seen, the blockchain provides much-needed security between the data source and the end user.
- Transparency . The blockchain does not allow to alter anything without the approval of all the nodes of the network. As a result, the analysts’ work focuses on completely transparent data .
- Accuracy . The use of big data techniques allows fast and accurate navigation and classification of billions of data records , and blockchain-based technology ensures their verification .
- Real-time analysis capacity . The blockchain provides the ideal means to exploit the possibilities of analysis in real time.
The combination of big data and blockchain techniques provides the ability to analyze the provenance of data and to ensure that data is trustworthy . Likewise, the convergence of big data and blockchain represents a true revolution in data processing and offers great opportunities to organizations and consumers.
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