- June 4, 2021
- By Joshua Reid
- Blockchain Technology , Technology
- blockchain , blockchain network , blockchain networks , blockchain technology , future , prediction , predictive , predictive analytics , technology
How Predictive Analytics Helps Blockchain Technology
In my article about the future of blockchain technology, I talked about some of the ways in which blockchain technology was being utilized, specifically in regard to the COVID-19 vaccine distribution. However, vaccine distribution isn’t the only way in which companies see blockchain technology being utilized, and blockchain has the potential to become an enterprise like Amazon or Microsoft.
But what predictive trends do companies see blockchain technology generating in the future?
An article by TechHQ titled “4 blockchain trends to watch in 2021, beyond cryptocurrency” notes that since last year, blockchain technology has been utilized more readily across the world in a variety of businesses and industries in order to make life easier, safer, and more convenient for businesses (TechHQ). Additionally, the article writes that even prior to the pandemic, companies had begun to see the benefits of blockchain technology beyond just cryptocurrencies like Bitcoin.
“… organizations and individuals have come around to the many uses of blockchain beyond cryptocurrency, from making transactions online easier and safer to making transportation of goods more streamlined, and even making the food we eat safer for us.” (TechHQ)
The trends in blockchain technology, from tracking where supplies are shipped to making the transportation of said supplies easier, is just the beginning. When blockchain tech was first introduced in 2008, no one could have predicted the trends we are seeing now, especially in healthcare, finances, and supply chain optimization
When it comes to trends such as supply chain optimization, it’s more than just the cost-distribution side that companies are concerned about. They, of course, also care about the trustworthiness of the optimized system. This is where blockchain tech can help businesses. In the article, TechHQ notes that, with a desire for more transparency with the supply chain of command, a system like blockchain is needed in order to “map each good as a digital twin and store it permanently in a trustworthy, distributed database” (TechHQ).
A system of blockchain, with its ability to allow more transparency, requires data–and lots of it. This is where predictive analytics comes into play. Predictive analytics essentially means gaining insight into future phenomena by using previous data, something companies that utilize blockchain tech will hopefully have a lot of.
Something that has kept companies from utilizing predictive analytics in the past is “the lack of a singular source of data” to analyze (Blockchain Industry Group). But blockchain technology can help with this as well. Because blockchain tech can handle the influx of data, it can become that singular source needed to make predictive analytics effective. This allows predictive analytics to gain better and more accurate insights, helping companies look into the future for new trends within the ever-changing market.
In an article titled “Why Blockchain is set to Transform the Predictive Data Market,” Janet Williams argues that one way in which blockchain tech is set to transform the predictive data market is through a better handling of data analytics. According to Janet, in the past, a poor handling of data analytics raised questions within the medical records system (due to a lack of information thanks to space available) caused widespread identity theft.
“With no centralized database management, any chances of tampering with the data are nullified immediately.” (Williams)
Because of a centralized database, cases of incorrect medical data and the possibility of widespread identity theft are diminished. Additionally, blockchain technology has an advanced encryption software that further helps give companies a better feeling of security about their data. This is because only those users who have access to the digital “server room” are able to utilize the data.
Because of the predictive analytics involved in blockchain technology, businesses like insurance companies have to have an abundance of data in order to answer their customers’ questions. With blockchain technology giving companies a secure and trustworthy network,and predictive analytics allowing companies to have a better guess as to the trajectory of their company going into the future, companies should be secure in gaining a foothold into the future trends of their company and their competition.
“4 blockchain trends to watch in 2021, beyond cryptocurrency.” TechHQ, https://techhq.com/2021/04/4-blockchain-trends-to-watch-in-2021-beyond-cryptocurrency/.
“Understanding the Predictive Capabilities of Blockchain.” Blockchain Industry Group (BIG), https://blockchainindustrygroup.org/understanding-the-predictive-capabilities-of-blockchain//
Williams, Janet. “Why Blockchain is set to Transform the Predictive Data Market – PromptCloud.” PromptCloud, https://www.promptcloud.com/blog/blockchain-set-transform-predictive-data-market/. Accessed 1 April 2021.