Why Blockchain Matters to Big Data - Big Data London Meetup - Nov 3, 2016
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The document discusses the transformative potential of blockchain technology for big data, highlighting its decentralized nature and ability to provide asset autonomy, immutable records, and shared control. It emphasizes that blockchain can unlock significant value across industries, including a case study on diamond fraud detection. Furthermore, it suggests that blockchain technology could fundamentally reshape our interaction with digital assets and data transparency on a global scale.
Why Blockchain Matters to Big Data - Big Data London Meetup - Nov 3, 2016
- 1. Database for the Internet Why Blockchain Matters to Big Data Big Data Meetup London Nov. 3, 2016 Bruce Pon @brucepon
- 2. What is a Blockchain? Global View Business LegalTechnical All-in-one system that unlocks immense value - value exchange, database, validation mechanism
- 3. What is a Blockchain? Component View Database EncryptionConsensus
- 4. What Is a Blockchain? Feature View Decentralized Asset Autonomy Immutable A pragmatic definition that allows for an expanded opportunity surface and blue ocean thinking
- 5. The First Use Case for Blockchain Bitcoin is a cryptocurrency, that uses the underlying characteristics of blockchain to issue a digital currency = Blockchain Bitcoin is an implementation of the technology Blockchain is the core technology
- 6. Blockchain Disrupts Centralized Parties Trusted Third Parties • Shared Single Source of Truth • Conducted via consensus rules • Enforced with transparency
- 7. Centralized Blockchain Model Centralized to Decentralized Strengths: 1. Lower coordination overhead 2. Efficient Weaknesses: 1. Centralized power 2. Silos 3. Hackable
- 8. Centralized Model Decentralized Centralized to Decentralized Strengths: 1. Real-time Processing 2. Hack-resistant 3. Asset autonomy Weaknesses: 1. Performance & Scalability 2. Governance & Security
- 9. Blockchain technology allows The Digitization of Value • Next wave of digitization • Weave into the fabric of our society • Larger than the internet
- 10. The Internet Drove the Digitization of Information Knowledge freely shareable for the world spawned billion dollar companies: - Amazon - Google - Facebook Gave voice to the powerless Connected the powerful
- 11. The blockchain is a truly open, distributed, global platform that fundamentally changes what we can do online, how we do it, and who can participate. Call it the world wide ledger. The Internet of Everything needs a Ledger of Everything. - Don & Alex Tapscott
- 12. Image Credits: Ripple Blockchain Technology will Impact $100 Trillion in Value
- 13. The “Real” First Use Case for Blockchain Source: http://www.looiconsulting.com/wp-content/uploads/2014/08/Four-Vs.png
- 14. 3 Ways to Unlock Big Data with Blockchains Decentralized Asset Autonomy Immutable Shared Control Universal Exchange Audit Trails
- 15. 3 Ways to Unlock Big Data with Blockchains Shared Control Universal Exchange Audit Trails
- 16. 3 Ways to Unlock Big Data with Blockchains Shared Control Universal Exchange Audit Trails
- 17. Audit Trails for Big Data Using Blockchain
- 18. Audit Trails for Big Data Using Blockchain Source: http://www.bloomberg.com/news/articles/2011-09-01/the-f-35-s- global-supply-chain
- 19. Global Database
- 20. 3 Ways to Unlock Big Data with Blockchains Shared Control Universal Exchange Audit Trails
- 21. Example: Data Pipeline IoT Sensors HDFS Storage Cleaning Normalization MongoDB Storage Analytics
- 22. Creating Immutable, Time-Stamped Data Create Tx Write to DB Sign Tx Or if you’re already using a distributed database that BigchainDB wraps, then simply swap out that database with it’s blockchainified version.
- 23. BACK OFFICE EFFICIENCY SUPPLY CHAIN RISK MODELS Unlocks Data Lakes and Big Data Tools Data Transparency
- 24. 3 Ways to Unlock Big Data with Blockchains Shared Control Universal Exchange Audit Trails
- 25. Digital Assets Digital assets which have value and can’t be copied. TOKENS TICKETS SECURITIES CREDIT CURRENCY
- 26. Asset Sovereignty $ BANK COURT EXCHANGE Own your private data, intellectual property, financial assets, land property without the reliance on others to secure it. A truly global world where no government can take away what is yours
- 27. Assets “Live” in the Network
- 29. A scalable blockchain database for the decentralized enterprise Anatomy of a Diamond Fraud Proof-of-Concept January 2016
- 30. Case Study: The Diamond Supply Chain 30 • Conducted 6 week Proof-of-Concept • Entered 1 Mio diamonds into BigchainDB from multiple data sources – Certification Labs, pricing services, and marketplaces • Developed custom analytics and machine learning tools to understand and assess the data How much fraud is there on a major diamond marketplace? Conclusion: 7% of all listings have RED flags and are most likely fraudulent. This works out $750 Million per year of fraud on a single marketplace
- 31. What is Diamond Fraud?
- 33. Let’s Scrape for Data
- 34. Anatomy of a Diamond Fraud 34
- 36. Anatomy of a Diamond Fraud 36 • Diamond listing identified • Three fraud indicators are found: 1. Offer price is suspiciously low 2. Is the Certification Lab trustworthy? 3. “Appraisal” value serves as a mental anchor to convince buyers that they’re getting a deal
- 37. Anatomy of a Diamond Fraud 37 • Ascribe’s GemInSights is a backend prototype to monitor and track diamonds entering the supply chain – with a Rating scorecard that flags suspicious diamonds • Findings - RED Flags: 1. DGI lab • Online Diamond ID Lookup function finds no diamond correlating to cert# on listing • No sample certificates to show buyers authentic certificates 2. Price Estimator • List price is 70% less than expected based on analytics it’s “too good to be true” 3. Related Sightings • Exact same listing has shown up multiple occasions – once stored in BigchainDB, it’s immutable
- 38. To get started with blockchain apps and use cases, Sign up for early access at: https://ipdb.foundation/ipdb-testnet
- 39. - Erik Brynjolfsson Electricity is an example of a general purpose technology, like the steam engine before it. General purpose technologies drive most economic growth, because they unleash cascades of complementary innovations, like lightbulbs and, yes, factory redesign.