How to Use Blockchain and Big Data for Better Small Business Profits
In this age of the Internet of Things, the need for businesses to make data driven decisions has become critical. The amount of consumer data available for analysis continues to grow exponentially, creating more opportunities for businesses to tap into it.
Effective use of big data means better decision making and hence business profitability and growth. According to a report by EY, the robust growth in big data is disrupting the way businesses compete and operate. Businesses that are able to derive value from their data are emerging as leaders in their industries while those that do not are finding themselves being pushed to obsolescence.
As Geoffrey Moore, the famous American organizational theorist, author and management consultant puts it, without big data, companies are blind and deaf, wandering out into the web like a deer on a freeway. But is every business utilizing big data today? The answer is no! While most Fortune 500 companies have a big data strategy in place, the majority of small and medium enterprises do not. This is because implementing an effective big data strategy requires specialized skills and expensive software the majority of these businesses cannot afford.
However, with the blockchain technology, businesses will now be able to leverage big data analytics without having to worry about cost or complexity. But before we discuss how blockchain is enabling businesses to implement big data strategies effectively and at low costs, let us first look at the relationship between the blockchain technology and big data.
While big data analytics is about deriving insights from large pools of data, blockchain is about enabling fully transparent P2P transactions and also protecting consumers’ data from exploitation by third parties. The blockchain technology involves an immutable public ledger where transactions can automatically be verified and information stored securely hence eliminating the need for intermediaries.
With this in mind, it is logical to conclude blockchain systems provide a rich data source for analytics while ensuring that the presented data is accurate and the users’ sensitive data is protected. According to VentureBeat, the application of the blockchain technology in big data and analytics makes it possible to turn insights and questions into assets.
