Should Your Company Use Blockchain Technology?

What is Blockchain?

Blockchain is growing rapidly in popularity. It was originally designed for the distribution of a cryptocurrency called Bitcoin, but there are other potential uses for this technology. The main benefit of Blockchain is the transfer of electronic funds without third party intermediaries such as credit card companies. It is a new database system that is used for managing electronic transactions. The records (“blocks”) in this database are interconnected and have a link to the previous block. This makes it hard for anyone to change the data; making the data secure. More companies started investing in Blockchain and are realizing the potential of virtual currency (Time Magazine).

What Companies are Using Blockchain?

Other companies are thinking of ways to incorporate Blockchain technology into their own industries. A lot of businesses are recognizing the validity of Bitcoin and are accepting it as a form of payment. According to Innovation Enterprise, Paypal, CVS, and Whole Foods now officially accept bitcoin (Innovation Enterprise). Companies now can derive insights from payment methods. Previously, companies had to work with third parties to analyze payment data, but now are creating their own Blockchain infrastructures.

How Can Blockchain be Used in Data Analysis?

It is important for companies to understand how Bitcoin and Blockchain work because more consumers are using it.  Blockchain provides valuable data on electronic payments. By assessing patterns across user data in Blockchain, companies can identify valuable customers and gain insight into fraudulent behavior. The use of data analytics in conjunction with Blockchain can help identify patterns in consumer spending and extract valuable   customer insights. Transactional data analysis will allow organizations to identify products and services that are performing well. Through these insights, companies can better allocate their resources to anticipate customer needs.

A Blockchain infrastructure will allow companies to become more secure in their data. Entries cannot be changed, the origin of data is recorded, and there a traceable trail to other relevant data. These factors contribute to more efficient  and safe data analysis. In addition, Blockchain is capable of handling larger quantities of data. Data analysts will be able to utilize more machine learning models in the analysis of this data (DigitalOcean). According to Venturebeat, the cost of data storage will also be lower because companies won’t need to work with third parties to process transactional and social data (VentureBeat).

Benefits of Blockchain Technology

Through the adoption of Blockchain technology, organization can enhance the quality of their data and its integrity. In addition, internal operations will become more efficient because there will be more computers continuously checking the validity of the data. Blockchain is a valuable data storage solution that can be utilized to protect the integrity of data. In order to make use of this data storage solution, analysis tools that are associated with Big Data can be applied. Companies can store massive quantities of data in a central location through Blockchain so different teams across an organization can process and transform data as they see fit. It is crucial that data is easy to access in order to generate actionable insights. By using big data tools in conjunction with concepts associated with Blockchain, companies can get a competitive advantage with their transactional data.

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