Blockchain Analytics – 5 ways Blockchain is Impacting the Data Industry

Blockchain Analytics – 5 ways Blockchain is Impacting the Data Industry

Blockchain
June 24, 2022 by Diana Ambolis
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Blockchain-based solutions have grown in popularity over the last decade. According to research, the worldwide blockchain industry was worth $2.89 billion in 2019 and is expected to be worth $137.29 billion by 2027, rising at a CAGR of 62.7 percent from 2020 to 2027.
Blockchain Analytics – 5 ways Blockchain is Impacting the Data Analytics Industry

New technologies emerge faster than one may imagine. Emerging technologies such as big data and Blockchain are becoming commonplace. These technologies are altering the way businesses operate. It is expected that these two technologies are self-contained and used separately.

While data science is concerned with extracting insights from raw and unstructured data, blockchain technology is a shared ledger that records and monitors transactions and assets in a corporate network. The complexity and volume of data saved to grow in lockstep with the advancement of these technologies. Analyzing this data has changed the two technologies by unlocking their potential by combining them – this is where blockchain analytics comes in.

Blockchain-based solutions have grown in popularity over the last decade. According to research, the worldwide blockchain industry was worth $2.89 billion in 2019 and is expected to be worth $137.29 billion by 2027, rising at a CAGR of 62.7 percent from 2020 to 2027.

The combination of the two technologies, Blockchain and data science, will increase its market worth.

What exactly is Blockchain Analytics?

The worldwide cryptocurrency industry was valued at $1.49 billion in 2020 and is expected to expand at a CAGR of 12.8 percent from 2021 to 2030, reaching $4.94 billion by 2030.

size of the global cryptocurrency market

“Blockchain analysis is the process of analyzing, recognizing, grouping, modeling, and graphically portraying data on a cryptographic distributed-ledger known as a blockchain,” according to Wikipedia. Blockchain analysis aims to uncover meaningful information about the many individuals involved in bitcoin transactions.”

Blockchain data analysis is a process that entails interpreting, categorizing, and monitoring blockchain transaction data to provide users with essential insights and aid in risk assessment. Blockchain analytics has become the most promising data science application with all of these analytical capabilities. To put it simply, they are the data chunks that are linked together in chronological sequence.

Such data openness allows regulatory agencies and law enforcement to have a complete awareness of illicit transactions and trace the movement, which aids in identifying offenders. Similarly, people better understand trends and investments, allowing them to make more informed judgments.

We must first comprehend blockchain and data analytics to understand how it works.

What exactly is Blockchain?

Cryptocurrency The first Blockchain application was Bitcoin. Because of its enormous success, dozens of other blockchain-based cryptocurrencies, known as alt-coins, have been established. This technique has been likened to the discovery of double-entry bookkeeping. Being doubly sure is destined to cause a revolution in the commercial world.

Blockchain is a distributed ledger that records economic transactions and is accessible to anybody but cannot be changed.

Blockchains are classified as either private or public. Private blockchains provide specified parties with the relevant rights to read and write access. A public blockchain, on the other hand, may connect to any node on the internet, and information/transactions can be watched by all nodes that are linked. To view transaction information on a public blockchain, no authorization is required. The public Blockchain is where cryptocurrency fits in.

What exactly is data analytics?

Data analytics is examining raw data to identify patterns that may be used to make educated business choices. It uses machine learning and other sophisticated approaches to utilize and analyze data to extract information and insights from structured and unstructured data.

Data is the gasoline that corporations use to power their growth machinery. This data is mined, processed, and cognitively examined in different business applications. In the healthcare business, for example, data science is used to monitor patient treatment and equipment flow; in the travel industry, it is used to improve customer service and experience; and so on.

Blockchain Analytics and Data Science Interaction

This subject has received little attention. The unifying thread is that both technologies contain data at their core. While blockchain stores and verifies data, data science provides actionable insights for issue resolution and decision making. Both systems use algorithms to communicate with other data segments. In a nutshell, Blockchain is used to ensure data integrity, while data science is used to make predictions.

What Impact Does Blockchain Have on Data Science?

As previously said, both systems offer distinct advantages regarding data. Bringing them together will result in an additional layer of data that meets the following fundamental requirements:

  • With the support of its network design, blockchain technology can safeguard data created by data science.
  • The blockchain-based data is more organized, massive, and ready for further analysis.
  • When the advantages of each technology are combined, it is possible to save money by storing and analyzing data using blockchain technology, which can preserve data for lengthy periods.

The following are some advantages of how Blockchain will improve data science.

How Blockchain can help data science

  • Allows data traceability

Peer-to-peer partnerships are possible with Blockchain. This implies that if one account cannot explain the published technique, it may be read by the other peer, who can study and review the approach from beginning to end to determine how the findings were obtained.

Blockchain allows users to track data from the point of entry to the end of departure through ledger transparent routes. The user learns which data is trustworthy, how to save and update it, where it comes from, and how to utilize it.

  • Allows for real-time analysis

It is challenging to analyze real-time data. However, blockchain technology allows businesses to evaluate data in real-time, which aids in the detection of abnormalities at an early stage. Blockchain allows two or more individuals to work on the same kind of information simultaneously, similar to the spreadsheet capability, where multiple users may make and analyze changes in real-time.

  • Ensures the accuracy of data

As previously stated, blockchain data is kept in private and public nodes. The data is inspected and cross-checked at the input point before being added to different blocks. This is a data verification procedure in and of itself.

  • Facilitates and simplifies data sharing

The seamless and simple flow of data keeps the organization running smoothly. Managing data on paper is not only time-consuming but also complex. When it comes to data flow and access, blockchain technology is exciting. It may be readily watched, transferred, and accessed in real-time, allowing two or more people to use it simultaneously. The administration process is streamlined by the free and simple flow of data.

  • Enhances data integrity

Today, corporations are particularly concerned about data validity. In previous decades, the issue was to increase data storage capacity. By the end of 2018, technological improvements have assisted in overcoming this obstacle. Then there was the problem of securing and confirming data integrity. Because the data is derived from several sources, it is prone to mistakes, duplication, and inaccuracies.

Blockchain analytics is a breath of fresh air since it verifies the legitimacy of data at each block of the chain. Businesses are making use of blockchain technology because of its immutable security. Data is validated and cross-checked using multiple signatures on the decentralized ledger records at each block. Access will be restricted until an exact match for the signature is verified at each stage. As a result, the likelihood of data hacking and breaches is considerably decreased.

  • Consult a professional.

Some of the security elements of Blockchain that are advantageous to data science are listed below.

Transactions that are encoded

Blockchain encrypts every transaction on the ledger using advanced mathematical methods. These serve as irreversible and unchangeable digital contracts between the parties.

Lakes of Data

Data lakes are often used to hold information about organizations. Blockchain uses the data source to record it in a particular block with a specific cryptographic key. Having the correct key of the head of the data origin assures the data’s correctness, quality, and validity.

Final thoughts!

As the use of blockchain technology advances, so does the relevance of blockchain analytics. Transparent access to ledger transactions with immutable data is no longer a pipe dream. Because of blockchain data analytics!

The technology in question has already been embraced by businesses ranging from digital banking to food safety, healthcare, and weapon monitoring. Other sectors will eventually reap the advantages as well.