Data analysis is the procedure of evaluating, refining, modifying, and remodeling information. Data analysis’s end goal is to highlight valuable information, draw undeniable conclusions, and support decision-making. Big Data Analytics has various approaches, including several methods depending on the domains such as social science, business, or science domains. Cryptocurrency is benefiting big data in numerous ways, and we have listed a few in this article, which you’ll find later.
Bitcoin and overall Cryptocurrency fall under a volatile asset class. Investors are looking for more ways to analyze the crypto industry and make some money and alternatives, like Litecoin and Ethereum. While still in its initial stages, big data analytics is starting to analyze bitcoin, and another cryptocurrency is benefiting big data.
While many people discredit the possible usages of big data analytics for Cryptocurrency, like recognizing users, saying that undermines Cryptocurrency’s soul, there are still ways in which Cryptocurrency is benefiting big data by identifying dangerous or fake users, preventing fraud, and predicting trends. The numerous advantages of merging Big Data Analytics with Cryptocurrency are mentioned below.
How is Cryptocurrency benefiting big data?
● Protecting Against Hacks and Improving Security
Lack of security is one of the primary barriers that dissuade people from entering the cryptocurrency industry. Cryptocurrency is benefiting big data by protecting against hacks and enhancing safety as well. Big Data Analytics empowers security by utilizing just two simple tools: in-depth blockchain data analytics and pattern recognition over the transactions. Applying these tools makes it easy to identify dangerous and fake crypto users, and therefore legitimate users can avoid trading with them.
Nevertheless, a machine can leak data irrespective of how protected it is. There are loads of data-driven hacking, and hence, it is easy for a crypto investor to lose their coins. Big Data Analytics is crucial in this case to recognize possible leaks and security threats. Security analysts are even employing Big Data analytics to improve overall security and counter hacking attempts.
● Big Data Analytics Helping Spot Volatility
The worth of Cryptocurrency depends on the trade volume; hence, it is crucial to acknowledge the market trends to be a successful crypto trader. Cryptocurrency is benefiting big data by thoroughly evaluating market trends by predicting the traders’ expected value while trading. The worth of market demand defines cryptos’ value, which is so imperative to be informed about market trends due to cryptocurrencies’ volatility.
Cryptocurrency is benefiting big data by enabling big data analytics to accumulate data from social media platforms to portray the customer’s behavioral patterns towards Cryptocurrency. Crypto traders can then acknowledge people’s feelings towards the present state of the crypto market. Acknowledging customer behavior by utilizing social data is necessary as crypto trading depends on individuals and all the events that can influence cryptocurrencies to get posted on social media platforms, and this is how Cryptocurrency is benefiting big data.
● Boosting Blockchain and Crypto Startups
Cryptocurrency is benefiting big data by applying Big Data Analytics in the industry by making this industry more secure. Accordingly, investors feel much more assured in investing their funds in cryptocurrency-driven startups. Tracking and evaluating cryptocurrency transactions by using Big Data Analytics is also a big deal in improving crypto startups. It enables startups to develop more informed and lasting collaborations.
Biggest Challenges of Big Data Analytics
Cryptocurrency is benefiting big data, as you can imagine, although big data analytics implementation has numerous challenges.
● Big data analytics, as the name implies, deals with a large volume of data. Even with modern progressions, the fact is that the amount of data floating around keeps rising exponentially. As such, it becomes extremely tough to keep a record of all the data securely.
● Because the amount of the data is vast, fraud detection and data cleansing are notably labor-inductive tasks. Data scientists spend a large chunk of their time just cleansing up data.
● Keeping up with big data technology is a continuing obstacle since it is amazingly innovative.
The notion of Cryptocurrency is still foreign to many in the United States and across the world. There is a vast mass appeal of cryptocurrencies such as Litecoin, Bitcoin, and others. Generally speaking, although they are still mysterious in the eyes of an average individual. In the cryptocurrency market, we are beginning to see the convergence and emergency of crypto and big data analytics. You know Cryptocurrency is benefiting big data for those who know more than an ordinary individual when it comes to crypto.
While the established use cases of Cryptocurrency benefit big data, big data analytics presently involve identifying malicious users, theft prevention, trend prediction, and more. Likely, new uses for cryptocurrency-related data analytics that we can’t imagine will appear. The same way that Cryptocurrency, bitcoin, and blockchain have evolved and given way to new companies, industries, and more.