🕵️ What’s Big Data?
Have you ever wondered why Netflix effortlessly brings to your attention shows that you might probably like? How searching for a flight on Google magically populates your Web2 browsing experience with hotel deals in your intended country of destination? Don’t you love how your YouTube homepage is tailored to take you down deeper rabbit holes when it comes to the pursuit of your interests, be that coding, learning DeFi, or beating Elden Ring?
We take for granted the many day-to-day conveniences that these algorithms afford us, but there is one all-encompassing term that powers this invisible machine.
“Big Data” fragments information to make sense of the greater puzzle that is human behaviour. It helps businesses, data scientists, and researchers recognize enhanced patterns of user behaviour, translate actionable insights, improve fraud detection, and reduce costs associated by highly optimizing resource allocation.
In this article, we’ll discuss how prevalent the use of Big Data is in Web2, as well as how much of it can be applied to Web3 given the current limitations (and opportunities) of blockchain technology.
🔍 Recognize Patterns of User Behaviour
Businesses are inundated with an avalanche of data generated by user interactions across various platforms today. Big Data serves a solution in offering granular insights into customer data (i.e. click stream data, social media activity, and purchase history), such that businesses can tailor their user experience much better when navigating the overwhelming plethora of products and services offered.
🖱️ Click Stream Data
Businesses can gain insights into the preferences, which products are servers users are interested in for a given time period, understand how they navigate the landing page, and where they tend to drop off in the sales funnel.
Recognizing these patterns in data, can help businesses optimize and develop better product/service offerings for its customers to maximize the purchasing process, boost conversion rates, and better their user experience. Google’s Ads is a prime example of providing these actionable insights for businesses.
🥸 Granular Insights
Big Data analytics allows businesses to dissect and analyze user data at a granular level. It involves processing and scrutinizing every click, every interaction, and every transaction. This level of granularity is critical because it uncovers intricate details about user behavior that would otherwise remain hidden. Datadog offers a good solution in scaling these insights without compromising security.
💪 Competitive Advantage
In today's competitive landscape, businesses that harness the power of Big Data to recognize user behavior patterns gain a significant advantage. They can adapt quickly to changing consumer preferences, make data-driven decisions, and stay ahead of the competition. Adobe’s Analytics helps you track the customer journey, to prolong customer experiences within businesses.
📶 Network Analysis
Big data can examine network traffic patterns and identify anomalies that might suggest a cyberattack or unauthorized access to a network. This can help prevent data breaches and protect sensitive information. Allowing to quickly identify suspicious activities that may indicate a cybersecurity threat, such as malware infections, unauthorized access attempts, or unusual data transfers. Solarwinds services help many of the networks today using these modern techniques to preserve security.
🤖 Machine Learning Models
Big data leverages machine learning algorithms to continuously learn and adapt to new fraud tactics. These models can identify emerging fraud patterns, even those that are not explicitly programmed into the system, by analyzing historical data. Such patterns could include multiple large transactions within a short period, inputting the incorrect or transactions from unfamiliar locations. When these anomalies are detected, it triggers alerts for further investigation, potentially flagging fraudulent activities like credit card fraud or identity theft.
💳 Reduce Costs
🪵 Resource Allocation
By analyzing data on resource utilization, organizations can make more informed decisions about resource allocation. This is crucial in fields like healthcare, where big data can help hospitals optimize staff schedules, reducing labor costs while maintaining quality care.
⚡ Energy Consumption
In industries like utilities, big data can analyze energy usage patterns to identify opportunities for energy conservation. This can lead to significant cost savings through reduced energy consumption.
Marketing Efficiency
Through targeted marketing campaigns, big data reduces marketing costs by ensuring that advertisements reach the right audience. This minimizes spending on broad, less effective campaigns.
Blockchain data is not there yet
Despite the immense potential and promises that blockchain technology holds, it has not yet reached its full potential in addressing several critical issues related to blockchain data management and utilization. These challenges include:
👥 Sybil Of Services
One of the persistent challenges in the blockchain ecosystem is the "Sybil problem," where malicious actors can create multiple fake identities to manipulate the network. This issue can compromise the integrity and reliability of blockchain data, affecting various applications such as incentive structures, voting systems, reputation systems, and more.
💵 User Acquisition Costs
Many blockchain and DeFi applications struggle with the high cost of acquiring users. This is partly due to the complex and unfamiliar nature of blockchain technology, which can deter potential users from participating in blockchain-based services or applications.
🌎 Accessibility of Data
While blockchain technology promises transparency and immutability, accessing and extracting relevant data from blockchains can be challenging. Traditional methods of querying and analyzing data may not be suitable for blockchain systems, leading to inefficiencies and delays in data retrieval.
💶 Affordability for usability
The cost of interacting with blockchain networks, including gas fees and transaction costs, can be prohibitive, particularly for individuals and small-scale businesses. This high cost can hinder the widespread adoption of blockchain technology and limit its potential impact. We examine this much more closely with how Kenshi can build Power Apps on a Budget.
Addresses these Challenges with Kenshi
Kenshi, as a blockchain data indexing platform, aims to play a pivotal role in mitigating the aforementioned challenges and advancing the blockchain ecosystem. Here's how Kenshi aims to make a difference:
💳 Cost Efficiency
Kenshi offers a cost-efficient solution for indexing and accessing blockchain data. By optimizing data storage and retrieval processes, Kenshi helps reduce the overall cost of interacting with blockchain networks, making it more accessible to a wider audience.
📈 Convenience for DeFi Apps
Decentralized Finance (DeFi) applications rely heavily on real-time and historical blockchain data. Kenshi's indexing capabilities streamline data access for DeFi developers, making it easier to build powerful and efficient DeFi applications.
📶 IoT Accessibility
The integration of blockchain with the Internet of Things (IoT) is a promising avenue for tangible accessibility and data security. Kenshi's services facilitate efficient interaction between IoT devices and blockchain networks, ensuring that data from connected devices can be securely and seamlessly integrated into blockchain applications. As elaborated in the future vision for Kenshi.
🔢 Problem Solving
Kenshi acknowledges the riveting issues facing blockchain technology today and is dedicated to providing practical solutions. By addressing data-related challenges, Kenshi contributes to the overall maturation and widespread adoption of blockchain technology.
In summation, while blockchain technology holds immense promise, it still faces several hurdles in terms of data management, accessibility, and affordability. Kenshi emerges as a proactive player in the blockchain ecosystem, offering solutions to these challenges and supporting the evolution of blockchain technology into a more robust and accessible framework for a wide range of applications.
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