New technologies are emerging quicker than one can think. Emerging technologies like big data and blockchain are becoming conventional. Such technologies are changing the way organizations do their business. It is assumed that these two technologies are stand-alone and are being employed independently.
As these technologies grow, the complexity and amounts of data stored too are proportionately increasing. Analyzing this data has revolutionized the two technologies by tapping their potential by bringing them together – there comes blockchain analytics.
Integration of the two technologies, blockchain and data science is bound to provide a boost to its market value. A blockchain software development company definitely sees the potential in bringing them together if they look with a future point of view.
What is Blockchain Analytics?
The global cryptocurrency market size was valued at $1.49 billion in 2020 and is projected to reach $4.94 billion by 2030, growing at a CAGR of 12.8% from 2021 to 2030.
As defined in Wikipedia, “Blockchain analysis is the process of inspecting, identifying, clustering, modeling and visually representing data on a cryptographic distributed-ledger known as a blockchain. The goal of blockchain analysis is discovering useful information about the different actors transacting in cryptocurrency.”
To put it in simple terms, these are the blocks of data that are chained together in chronological order. Blockchain data analysis is a process that involves understanding, classifying, and monitoring blockchain transaction data that allows users to get valuable insights and helps in better risk assessment. With all these analytical possibilities, blockchain analytics becomes the most promising application of data science.
Such transparency of data enables the regulatory authorities and law enforcement to have full visibility of unauthorized transactions and track the movement that helps them to identify the criminals. Similarly, individuals get better visibility of the trends and investments that empowers them to make more informed decisions.
What is Blockchain?
Blockchain services basically refer to the distributed ledger that records economic transactions which anyone can access but cannot be manipulated.
What is Data Analytics?
Data analytics is the process of analyzing the raw data to find trends that help in getting the answers to make informed business decisions. It extracts knowledge and insights from structured and unstructured data with the help of machine learning and other advanced methods to use and analyze the data.
As understood above, both technologies have different benefits with data as the center. Bringing them together will add another layer of data that satisfies the following basic requirements:
- The data generated from data science can be secured with blockchain technology with the help of its network architecture.
- The data based on blockchain is more structured, huge, and ready for further analysis.
The specific benefits of each technology, when combined together, can save money by storing and analyzing data using blockchain technology that can store data for long periods of time.