What is the relationship between Blockchain and Big data?

In these rapidly changing times, mobile Internet is coming when you have not learned the PC Internet, and big data is coming when you have not learned  the mobile Internet. Nowadays, Blockchain is coming. So what is the relationship between big data and Blockchain? After reading the following views, you can get the conclusion about: Big data is coming flying with Blockchain.

• Data Safety: Blockchain make data flow confidently

With the dependability, security and immutability, Blockchain can liberate more data. For the gene sequencing, Blockchain can use the private key to access authority, then avoid legal access to individual gene data, and finish the whole sequencing services with a low cost by distributed computing. The safety of Blockchain make it possible for sequencing to an industrialized solution, even to a global scale to promoting the massive growth of data.

• Opened & Shared: Blockchain protect the privacy of data

The government owns a large number of high density and high value data, such as the medical data and population data. Opening data is a trend for the whole economic and social development, which will have an immeasurable impetus. However, the difficulty and challenge of the opening data is about how to protect the privacy. The desensitization technology that based on Blockchain can ensure the data confidentiality and provide the solutions for the opened data. The data desensitization technology mainly adopts the encryption algorithm about hash processing. For example, the Enigma system that based on blockchain technology, it can computing data without accessing to the original data, and prevent information security problems in data sharing process.

• Data Storage: Blockchain is a storage technology of database for immutability, historicity and strong endorsement

Block chain technology makes all the nodes participate in the network computing, and reach to the whole network consensus by the mutual authentication. In another way, blockcahin technology is a specific database technology.  So far,Big data still in a basic stage, and Block chain data that's based on the whole network consensus is immutability, historicity and strong endorsement of data quality, all of these make the development of a database to a new era.

• Data Analysis: Blockchain can ensure data security

Data analysis is the core to realize the value of data. How to protect personal privacy and prevent the core data leakage is the primary consideration. For example, with the popularity of fingerprint and gene detection & analysis, more and more people worried about the data leakage that may lead to serious consequences. And Blockchain can prevent these situations by multi-signature (private key), encryption and secure multi-party computation technique. Data can be stored in the decentralized Blockchain, doing the data analysis without access to the original data, and can be safely shared to the global scientific research institutions as the health database, to bring great convenience for sudden illness and future diseases.

• Data Flow: Blockchain can guarantee the related interests

For the individual or organized valuable data assets,. which can be registered by Blockchain, the transaction recording is approved by the whole network with transparency and traceability, then explicit the source, the ownership, the use and circulation path of data assets, having great value for asset transaction.

All of these with protection in Blockchain, Big data will naturally be more active.

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Challenges for Blockchain

Fields & Superiority & Instances

Application Fields	Technological Superiority	Fields Instances
Payment & Settlement	Reduce the cost of clearing intermediary(bank, third party payment)	Ripple，the world’s first open payment network
Asset Transaction	Reduce the cost by reduce the number of intermediaries and improve the efficiency of the process	NASDAQ launched the equity trading system（Linq） that based on blockchain technology
Registration & Authentic Right	Information transparency, information security and effective (Immutability)	Honduras government uses Blockchain registration for real estate information
Quik Auditing	Ensure data integrity and accuracy, and improve data reliability and efficiency	DDT in the service of auditing by Blockchain

Superiority & Challenge

• To solve the trust problem in the sharing economy, reduce fraud and increase trust:Blockchain can make it difficult to tamper, add or delete transaction recording. This can solve the distrust problem between consumers and sellers, then accelerate the development of the sharing economy, especially for the distance users in a far business scenary.
• To improve the efficiency and transparency of the parties: improve the transparency of the sharing data in the exsisting system, then reduce the cost and improve the efficiency. For example, all transaction parties can share the transaction data by blockchain technology, simplify the process of transaction clearing and settlement, completely avoid data errors caused by manual proofreading, manage process and shorten process time.
  With the high credibility and transparency of blockchain technology, the commercial operation will face many hard challenges. And the key challenges in any fields are as followings:
• Standard: If Blockchain used in extensive fields, the data and process should be standardized and defined well by enterprises and IT service providers, and ensure this agreement can be used in the entire industry.
• The interest conflict and business process conflict between enterprises: If the trading parties cannot reach to a consensus due to these commercial conflicts, which may slow down the acceptability of blockchain technology.
• Policies and regulations: There are many polices and regulations in the bank business, payment, clearing and some related insurance and stock products. All of these fields should change the data format and business process, so it need to adjust the relevant policies and regulations, some of these should be authorized by the supervisory level before implementation.
• Speed: The response time of the traditional database is faster than the distributed database, because it is a distributed database with full backup by any nodes. So the Blockchain system in real-time and on-line should be suitable for high-speed trading with high frequency. But the experts cannot learn the practical loading potential of the technology due to the lacking of instances.

Company site：https://www.baoquan.com/en/
Contact email： js@baoquan.com

Technical characteristics of Blockchain

The concept of Blockchain is an important part of Bitcoin, it is a centralized database with the underlying technology of Bitcoin. The blocks are produced by encryption algorithm, each block contains the Bitcoin network transaction information and used for verifying the information effectiveness, then generate the next block.

Due to the full use of these underlying technologies, the database based on blockchain technology owned the absolutely safety and trusty for data. The characteristics about transparency to the internal and external are extremely enhanced, specially to these superiorities such as decentralized, immutability, openness and autonomy.

Outstanding features of Blockchain

Characteristics	Description
Distributed & Decentralized	Each node stores the entire copied database, non-centralized management mechanism, and there is no need for both sides to establish a trust relationship through the third-party.
Immutability & Safey	Once the information is verified and added to Blockchain, all these will be stored permanently, it is invalid to change the data unless it can control more than 51% nodes. So Blockchain has data stability, safety and high reliability.
Public system with openness	Using the mature cryptology to protect the immutability of transaction data, establish the trust relationship; Bllockchain data is open to anyone, and the entire system information has highly transparency.
Collective maintenance	Based on the strict encryption and data verification protocol, the nodes in the system can exchange automatically and safely, then update all data.

Blockchain is a highly credible and transparent database system that can be used to cross trust barriers between companied or individuals. The past database system was controlled by a company or an alliance, so its own data storage security and data credibility problems could not be guaranteed, only through the third party or multi-party to realize it. But Blockchain can solve all these problems, any company or individual can own the only node in Blockchain to join the whole system, technology and system can ensure the data identity and reliability. Blockchain database system can verify data by itself without additional investment, manpower or computing ability, so as to abtain the completely trust and improve the effectiveness of the system.

Company site:https://www.baoquan.com/en/

Contact email: js@baoquan.com

An introduction for Blockchain

With the development of blockchain technology, it will take great changes to the application areas. In fact, Blockchain has the high application value in many areas, such as finance, shared economy, Internet of things and so on, attracting the positive layout from Goldman Sachs, Citigroup, NASDAQ, DDT, Airbnb and other enterprise giants. So what is Blockchain?

What is Blockchain?

Simply speaking, Blockchain is similar to an account book, all of the transaction information can be recorded.  The account book stored in the Bitcoin node of the Internet, and each node has a full backup. The former ID will be recorded in each block, then forming a chain structure, and called Blockchain.

What is the superiority?

Intuitively, it can be said that Blockchain has the following three advantages: Open & Transparent; Collective Maintenance; Reliable Database.

First of all, the data in the Blockchain has a high degree of  sharing, anyone can check the transaction information or the related information you need, with the full transparency.

Secondly, the nodes with maintenance function can maintenance the data blocks in the whole system, and everyone can participate in such nodes. Obviously, Blockchain is a “big data family” involving all users’ maintenance.

Lastly, the most important point is the superior data reliability. For the regularly refresh of data, system chooses the earliest and the most accurate data to record and send it to others to backup. So the more nodes in the system, the higher computing needed, and system will have the higher data security.

Due to the above three advantages, Blockchain owned the trustworthy characteristic and the whole operation is open and transparent, all the data could be maintenanced with unchangeable. So within the defining rule and time scope,  the nodes can not deceive other nodes, and the data exchange between each node does not need the trust.

What is the application prospect?

For these advantages of Blockchain, the industry pays attention to the Blockchain application prospects. The Blockchain ecological circle has rich and perfect resource, from financial market to the emerging fields, perfect the industrial chain to support blockchain technology with rapid and sustainable development.

Blockchain has multitudinous bonding points with future industry, with huge investment opportunities, and everything can be digitizes and digital scene will have Blockchain figure. By other ways, blockchain technology can be applied in broad areas, such as currency, finance, intellectual property, notarization, networking, medical, communications, data storage, supply chain and many other fields.

Zhejiang Shuqin Technology Co.,Ltd (https://www.baoquan.com/en/)is a innovating enterprise that is devoted to the blockchain development and application. We have made a great contribution to the development of blockchain chip design, primary digital asset transaction and consensus mechanism network from 2013. Founded in 2015, BAOQUAN.COM is a one-stop service platform for e-data attestation with the experts from the industry chain, the financial, the law, etc.

Part 11: The Value of Blockchain Application

 Blockchain Internet of things

The Internet of things formed by hundreds of billions of devices, the identity authentication mechanism for user security associated with the device. User creates and maintains other devices with the interaction rules dynamically. These rules provide a powerful mechanism to determine the relationship between the user and device, and the standards defined by users—— the rules for the society, the material or the temporary rules —— to allow the device whether is available.

When upgrade software security by device test or forbid the incorrect behavior participant, rules can also be defined by the 51% consensus mechanism. User should create and execute the digital list based on a predefined set of rules, and the goal is to help ensure that the running device with no failure.

The role of device

On the other hand, device has been authorized to upgrade by searching for their own software, confirm each other’s credibility and pay for resources and services, execute the contract automatically, such as protocol, payment and deal with other devices. This allows them to play a role in self sustaining and self serving.

The ability for automatically trading of intelligent devices creates a new business mode that facilitates new business opportunities: each device from the Internet of things can act as an independent business entity, share the capacity and resource with other devices by a low transaction cost, such as computing cycle and bandwidth. In addition to more fully utilizing the one billion devices then ever before, not only formed the new business mode, but also promote the birth of new market with the related service and consumer goods of devices.

The role of manufacturer

For the device manufactures and service providers, the Internet of things based on Blockchain has a great appeal. It allows they transfer the responsibility of equipment maintenance to a self-maintenance community, which makes the Internet of things will not be outdated whenever in the device life cycle or over the life cycle, and save infrastructure cost at the same time.

In this mode, user controls his privacy, not by a centralized institute, and the device is the master. The cloud’s role has changed from a controller to a service provider. In the new democracy, the power of the network moves from the center to the edge. Device and cloud have become the equal citizens.

The device driven democracy is clearly to attract the interest of participants in the Internet ecosystem of things. However, its greatest value may lie in the macro level, not only to create a scalable and efficient Internet of things, but also create a new market and a new business mode.

Part 10: The Value of Blockchain Application

Anti money laundering Skry

In April, 2016, Blockchain analysis company Coinalytics officially renamed Skry. Skry originally refers to “using the crystal ball or other reflector to predict the future”. In October 12^th, Skry announced the decision for the anti-crime network together with intelligent company Terbium Labs. They supply services for the financial institutions, bitcoin companies and the legal operation department for the investigation of criminal activities. Meanwhile, the two companies also published a research report on the dark network with the attacks topic of the bitcoin and blockchain technology from criminals. The report also refers to the common illegal activities , including extortion, exchange attack and finance the drug-traffickers.

Skry and Terbium wrote in the report: public chain, digital currency and the distributed currency have opened the door to the criminals unconsciously. In addition, some mixed currency applications improve the privacy and anonymity to a certain extent, such as Coin Join, Confidential Transactions and Mimblewimble. Even these applications can ensure the user privacy, it also encumbers the anonymous transaction for the investigators tracking to some enterprises.

Skry and Terbium believe that the threat intelligence and risk solutions in the dark network and management network are very necessary. The CEO Fabio Federici of Skry said, working with Terbium Lab can help them to achieve their goal: it is satisfied to enrich the dark data in their platform. High-end technology of Terbium Lab combined with the Blockchain intelligence platform of Skry stimulate inspirations and appeal for more important information for customers.

In the report, Skry lists a detailed case to explain how they fight for crime activities. They will use the Match light system of Terbium to monitor the bitcoin public key. Then all the public keys from Tor, DNM, and forum will be collected and recorded. And the related data will be taken over by the Skry analysis platform, officially entered the analysis phase. The report tested about 3,697,408 URL, mostly from Pastebin site, DNM site, code repositories site and so on. Skry believe that these URL can provide important data intelligence for the investigation program. The analysis result shows that about 11,000 different URL and DNM are bundled together, which contains about 22,000 public keys. According to such data, Skry successfully identified 798 single bitcoin public keys. The report also shows that the biggest dark market are Dream and AlphaBay, and a psychedelic forum Majestic Garden following closely.

Part 9: The Value of Blockchain Application

 Blockchain for credit inquiry system  

ShoCard is a startup company in America. In 2015, the former vice president Armin Ebrahimi of YaHoo and the former vice president Jeff Weitzman of Coupons.com set up ShoCard with the fund-raising $1.5 million from Digital Currency Group and other three venture firms. ShoCard devotes a commitment to the digital identity authentication management by blockchain technology. Ebrahimi takes ShoCard as a way for people to check their own insurance accident, provide the identity authentication information for the e-commerce providers, banks, or any third party organization. The interface user can upload identity ID card to Shocard application. All these files will be stored and encrypted immediately to the Blockchain. And ShoCard does not have to store or hold any of these files. Files are sealed on the Blockchain that cannot be changed. Anyone who needs to know your identity could be allowed to authenticate on Shocard.

 For example, if a bank needs to verify your identity, you can send your encrypted Shocard. Then bank through checking the Shocard data whether matching with the encrypted data on the Blockchain. And bank will create their own recording that related to Shocard, encrypt them by using their private key. In this way, bank will verify you at any time. This verification can be used for account login, account management, credit card authentication and so on. It is similar to the signature card in the storage file of bank, have the use for matching the signature on a personal cheque. The followings are the use cases from bank and tourism industry:

Case 1: When logging in, you just need to scan the QR code on the bank web from your Shocard app, taking trouble free of forgot the username and  password or easily hacked. Then your app will receive a message about fingerprint verification. After providing fingerprint, you will sign in automatically.

Case 2: When you need to call the bank customer service for the account problems. In the traditional way, they will ask you some security questions, something about your mother’s surname, your account ID, or your username. If your account hacked, all these can be destroyed. Instead, using Shocard to send a message to your application, communicating with the bank operator: notify you to be verified by a fingerprint. After being verified by Shocard app, bank will determine your identity.

Case 3: Passengers use Shocard APP to upload all their travel documents. These files will be sealed and encrypted on Blockchain, and anyone can use the public key to verify their authenticity. Passengers can share such information by scan the QR code when they check in, pass security check or immigration checkpoint. Perhaps passengers need to provide the original documents to verify in the first time, but those people who often flying can use the app as needed.

Part 8: The Value of Blockchain Application

The traditional exchange platform needs to advance large amount money for the settlement, reconciliation and coordination between the tenants, which increase the operating cost of exchange platform. The profit model often comes from the sale returns of exchange tenants. For the non-unity return mechanism, the larger tenant has lower commission and contrary to the smaller ones. This will lead to the increased cost for tenants, then influence the participation enthusiasm.   

For the centralized exchange platform with the non-transparent commission mechanism, the users’ resource can be used in other ways or transfer to the specific issuer, leading to the non-transparent market chaos for the competitors. In addition, the poor operating will damage the interests of issuers, tenants and ordinary users.

Non-transparency and asymmetric information also eventually led to the lack of trust for issuers, tenants and users.

Blockchain digital points      

Bitcoin as the most mature Blockchain application, which is similar to the accumulated points, called the digital assets. And the only difference is the maintenance mode, Bitcoin relies on the transparency of the underlying Blockchain and consensus mechanism, realize the uniqueness, trustness and valueness. Therefore, the accumulated points as the digital asset can realize the openness and safety exchange mechanism that references on the digital characteristics of Bitcoin, maximize the value for flowing.      

Meanwhile, the Blockchain characteristics of non falsification and traceability can make use to analysis the realistic user’s behavior by the circulation data of Blockchain accumulated points, enhancing the marketing influence.

For the open joining mechanism, Block chain can realize the fair asset exchange  on the premise of perfect symmetry parties. The consensus mechanism can realize the exchange voting, and keep the checks and balances for a stable marketing structure.

Part 7: The Value of Blockchain Application

Security system based on Blockchain and big data

• The real data source.
• Establish the data chain.
  Connect the key nodes of the data source by Blockchain.
  Realize the unforgeability, non falsification and traceability.
• The third party Baoquan help to achieve a better user experience that leads to the transparency and verification.The forensic expertise for electronic evidence and the basic infrastructure for blockchain technology.
• Promote the cost of fraud, formatting a continuous superposition of trusty. It could well help the evidence chain of big data to form a high probability.
• The wide big data model support for detecting, monitoring and authenticating.
• The effective and positive incentives. Transform the goodwill, customers, markets, supply chain into the domain value.The innovative OTO about F2C.
• From self evidence to social transparency, then to the formation social rules.
  For the Blockchain distributed billing system, the real data of the whole process has been recorded on the chain: consumers -> commodity -> weighing data (Internet of things) -> service provider (market or electric business) -> commercial tenant -> testing business -> regulators -> logistics -> peanut -> production logs, realize the undeletebility and non falsification, then to share data on the chain. The blockchain encryption technology can protect any content at the same time. And combined with big data to verify the risk information, forming a food system with safety and traceability for the main focus on the Blockchain authenticity, take the scalability of big data as a supplement.   

Blockchain points exchange       

The accumulated points have become the primary mean to increase the stickiness of customers for the various tenants, formed a huge market scale in China. According to statistics, the credit card points have 25billion points in 2015, communication industry and airline company about 5 billion, oil company about 20 billion, some other rest industry about 120 billion, total amount is 200 billion.

Even within the integrated closed system, when the user takes the goods away from tenants, there will exist settlement period between tenants and points issuers, forming the credit vaccum. It also makes difficult for tenants to access to the issuers, the insufficient convertible tenants also reduce the value of accumulated points.

Part 6: The Value of Blockchain Application

The structure of Blockchain big data transaction

• The openness protocol. The interactive protocol and data format have been made public by the system, and the participants can make related components join the system by self technology, ensuring the safety and controlled of the data.
• The open source code. The data access module has been written for the participants by system, and the openness code can make users more clearly, proving the innocence of the system at the same time.

Whole architecture

The whole system consists of three parts:

• The public chain for exchange: common area in the main chain. The operation has been constructed by the third party, building the foundation of communication architecture to realize the connection between members and the written of hidden protocols; Member authentication and access management; Maintenance the public record chain to realize the record of index and transaction; Set rules for the data and transaction to maintain the transaction order; Assist parties to complete the traceability rights of data.
• The member chain for exchange: member area in the side chain. The area for parties data, storing the backup recorded data of common area, supervision the correctness of Blockchain record from the common area; Maintain the private data of the shared data, provide the query service; Initiate query, access to the external data.
• Node device. Connect the common area to member area, realize the backup record from the common area, then complete the generation and submit of the block chain and receive the message from the common area access to communication terminal. According to the openness code, members can develop by themselves and also can obtain the source code from the trading platform.

The traceable Blockchain

Food safety is one of the international livelihood projects called “popular project”, which is directly related to people’s health and life safety, then related to the economic development and social stability. In recent years, the food safety incidents about pork, mutton fraud and pesticide residue on vegetables that will increase the consumer concerns. So the food safety in China is an important topic. 

The food traceability can ease consumers’ anxiety and develop the safety responsibility consciousness of food producers. The traceability system can connect every sector like production, inspection, supervision and consumption, then improve the degree of consumer confidence. At the same time, it can help to find the cause of problems by analysis and tracking, prepare the measures ahead of time to avoid the expansion of problems.

• The current food traceability system is mainly based on the development of enterprises, it can meet the traceability needs of enterprises but it is difficult to achieve information sharing;
• The chain of traceability is not long enough, so as to the information transfer between the upstream with the enterprise, the product information is difficult to be found in time, and impact the survey of food safety problem.
• Due to the lack of credibility of the third party, consumers have doubts about the traceability data, while the cooperate enterprises have misgivings about providing the operation data, resulting in the platform data in lack of accurate verified and managed.

Part 4: The Value of Blockchain Application

Bid data transaction with Blockchain

Nowadays, the high quality data often hailed by the government, such as high density, high value data, like medical data, population data and so on. The general trend with the openness, government data will promote the development of economic society. However, the main difficulty and challenge of the openness data is how to ensure the protection of personal privacy.         

The most commonly used mode is managed transaction, and each business agency will own the data interface managed to the transaction system, then matched market with the external. By the managed data interface, the data centre owning the actual control of data, then the subsequent retrieval and application of data has nothing to do with agencies, such as the transaction amount and object. The rights and interests are completely dependent on the integrity of centre.

Data is a special commodity, essentially different from the ordinary commodity, and mainly with the characteristics like the clearness ownership, replication means owning and so on. All of these determine the traditional transaction mode of commodity cannot meet the requirements of data sharing, exchange and transaction. 

Digital assets circulation + Privacy protection     

Blockchain technology can ensure the data notarization and ownership right with non tampered. As an asset for the transaction, data should be cleared the powers of ownership, disposal and transaction. On the blockchain, the hash value of the data packet is unique, used for verifying the authenticity and confirming the original ownership. All of the transaction records are recognized by the whole network with transparency and traceability, including the source of digital assets, the ownership, the use right and circulation path.

Blockchain is the distributed technology for digital assets circulation, recording each digital asset transaction, then establish the digital asset transaction environment by consensus algorithm, getting rid of data reproduction, so as to protect the legal rights of the data owner.

Blockchain can realize the application of data privacy protection and data encryption. The main data security includes data confidentiality, authenticity, integrity and prevent unauthorized copying. Blockchain technology combines the technology of data security and privacy protection involving SHA256, RSA and some other encryption algorithms. Hash algorithm can protect the data privacy and integrity with non-tampered; Asymmetric encryption can verify the data source and protect data security; Zero-knowledge proof can protect personal privacy by anonymous algorithm, prevent information from leakage.

Part 5: The Value of Blockchain Application

Timestamp 

Baoquan of data attestation, the joint established chain with Fadada of e-signature and OnChain, and Blockai are all based on the Blockchain to realize the digital copyright registration protection. The whole process of written copyright data with network broadcast is instantaneous through Blockchain, and cost only a few cents, in contrast to the traditional registration.

Blockchain has played a major role in the copyright registration by the timestamp which approved by the entire network consensus mechanism. The unified timestamp can ensure the creation time of the works with non repudiation proof.

However, the creation evidence with timestamp itself can not solve the problem of infringement. On the one hand, register on the Blockchain has weak legal effect. If the actual infringer obtain the original works copyright registration through other traditional channels, then he may bear the substantial infringement from the non-belonging copyright at law. Therefore the digital copyright trading mechanism based on Blockchain has become another solution.  

Blockchain copyright trading market

Ascribe from German has a copyright trading market based on the timestamp of Blockchain. Blockchain is not only for the creation copyright registration, but the transaction process data is also anchored to the chain. At the same time, Ascribe offers the blockchain browser to browse the transaction flow records on chain but the actual transaction contract performance remains offline. This is the same as the evidence chain structure of Baoquan, but for the off-chain trading, it does not have mandatory, and also can not solve the problem of contract breach on both sides.

A better solution for copyright will be as the digital asset register on the chain when writing, and all of the transaction process is not only for querying, but also should be performed automatically, so as to solve the performance issues of both parties.  The transaction works on the blockchain can not be shown to the non-chain trader through the encryption mechanism, thereby limiting the off-chain network crawling behavior and tort. Of course, the closed chain trading will inhibit the promotion of the copyright works.