The Marriage of Blockchain and Big Data

The Marriage of Blockchain and Big Data

In the already rapidly changing technological industry, Big Data and Blockchain were introduced and have now started to infiltrate the finance segment. Both technologies have the capability of revolutionizing the finance sector forever, but will they? Lately, Blockchain and Big Data tend to be in everyone’s news headlines, but most people don’t understand what they actually mean nor what they have to offer to the finance industry. Blockchain is the continuous and automatic public recording of general ledger data and information using a digitalized algorithm to insure security and authenticity. Originally, Blockchain was created to record the accounting processes of the now famous cryptocurrency, Bitcoin. The term initially received its name by the process of the growing “blocks” of data being recorded in chronological order that tracks all transactions with copies of the “chain” within the multiple servers deeming it a “Blockchain.” On the other hand, Big Data is an analytical and predictive computer system. IBM is currently the leader in utilizing the Big Data analysis to presume future results based on data to determine trends and patterns within given data to predict future estimations, trends, and outcomes.

The combination or so called marriage of Big Data analytics and Blockchain. Overall, both powerhouses have changed the financial predictability analytics and accounting recordings; when combined, they have the potential to revolutionize the financial services and technological sectors. If both tools were utilized in finance companies they could begin a new wave of real time analytics. Some companies have already implemented the marriage of both systems and have started to reap the benefits of the new technology. Currently, ten of the largest public U.S. companies have already openly embraced the Blockchain technology. These companies are as follows; American Express, Cisco Systems, Walmart, Boeing, IBM, Microsoft, Coca-Cola, Merck, McDonald’s, and Apple.


The intricate design of the distributed ledger technology of Blockchain can benefit future financial services, specifically banks. Every transaction will be recorded in real time, instantaneously and without error. This could be effective during a crisis due to a rapid response with up to date recordings. The use of multiple servers in multi-server recording makes it practically impossible to hack and corrupt. In the 21st Century technological age, cyber security is one of the utmost important aspects to the financial sector. A reduction in human errors in recording the data will cause for a reduction if not an abolishment in mistakes. This is going to cause no more reconcilements in the general ledger making it more accurate and allow for instantaneous settlements. Industries, including banks, could no longer “fluff” their numbers to make it seem like they are in better financial standing and pretend to be appealing to investors. It holds companies more accountable and tells a more accurate reading of their revenues and expenses. Overall, utilizing full transparency to the public will solve the biggest issues for companies causing for a reduction in risk and fraud.

The companies that start to use this newer technology will prosper and improve the overall functions of the finances for the company. BlockChain also has the potential to improve the value chain of companies and the optimization of capital by removing the intermediaries. Considering the improvements in the value chain as an enhancement in recording, tracking, assigning, linking, and sharing. There are disadvantages, of course, which will be adjusted for when the situations occur. Specific disadvantages for Blockchain data is the blocks of data will increase in size causing for slower transactions and higher costs.


Big Data uses quantifiable history of data to determine patterns and habits to predict the potential of investing. Big Data is incorporated into the predictive abilities of a company in order for individual companies to position themselves in their sector. The company can position existing products and services in their field and cause the beginning of new products to place in the market. For companies the finance sector, Big Data can be useful/beneficial in the investments predictability. The increase in cost savings can occur due to the accuracy and effectiveness of the predictability model. Big Data understands the market conditions as well by analyzing the historical data and establishing the trends and utilizing them for predicting the potential future trends for companies to get an edge on competition.

The Big Data model can also run risk analysis based on previously gathered data. It has the capacity to  detect fraud and criminal activity within a company while simultaneously protecting the data provided. It allows  companies to use The Cloud, which is an online storing and sharing of data in real time.


Independently, both technologies bring significant benefits to companies; however, having both technologies incorporated together will increase the mutual benefit for companies utilizing them. The Blockchain system of transparent rapid recording will enhance the Big Data predictive analytics with more accurate and up to date information. The overall competitive advantage both technologies have for companies can potentially change company’s finances and the finance sector in general. The real time analytics is becoming an important aspects for businesses, especially with the upcoming Millennial and Generation Z employees starting to flood the workforce market. These generations have grown up with rapid and accessible technology abilities  of the internet era where any information that is not instantaneously in front of them is unimportant. All information must be accurate and available when making decisions, which is why the real time antics of Blockchain and Big Data will be revolutionary for the entire financial industry.




“10 Dow Stocks Currently Testing Blockchain Technology.” Yahoo Finance. Web. 31 Mar 2018.

“Blockchain Definition.” Investopedia LLC. Web. 1 Mar. 2018.

“Big Data Definition.” Investopedia LLC. Web. 1 Mar. 2018.

“Predictive and Real-Time Analytics.” Investopedia LLC. Web. 1 Mar. 2018.

Vorabutra, Jon-Amerin. “Why Blockchain is a Game Changer for Supply Chain Management Transparency.” Supply Chain 24/7. 3 Oct. 2016. Web. 1 Mar. 2018.

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