Blockchain VS. Big data Part 3

Blockchain+Big data：Using big data technology in Blockchain

Blockchain is a distributed database storage technology with full history, the large Blockchain data set contains the whole history of each transaction. With the rapid development of blockchain technology, the scale of data will become increasingly large, the different business scenarios will futher expand the scale of data and rich the variety.

With the credibility, security and immutability of Blockchain, more data can be freed, to promote the massive growth of data. The traceability of Blockchain can record each step data from acquisition, exchange, circulation and calculation analysis on Blockchain, so that the quality of data can be comfirmed with the turst endorsement, then to ensure the correctness of data analysis results and the efficience of data mining.

Blockchain can further standardize the use of data, fining the authorized scope. After the desensitization of data transactions, it is conducive to break through the island of information, to establish the data flow mechanism, then to form the socialized large data. Based on the value transfer network of Blockchain, then to promote the formation of a global data trading scenario.

Blockchain can provide the integrity of data, and the statistical analysis for data is weak. But big data owns the massive data storage technology and flexible and efficient analysis techniques, then greatly enhance the value of Blockchain data and the use space.

By combining big data and Blockchain, to maximize the data value in Blockchain, then to allow the data forecast analysis become possible, all these will be the cornerstone of the digital economy era.

Blockchain VS. Big data Part 2

What is the main difference?

Big data is usually used to describe how large the data set is, and it is impossible to deal with in a traditional way.However, the loading information capacity of Blockchain is limited, which is still far away to the standard of “Big data”. There are several significant difference between Blockchain and big data:

• Structured vs Unstructured: Blockchain is a structured defined block, which formed by the pointer, the typical structured data, and big data need to deal with more unstructured data;
• Independence vs Integration: To ensure the security of Blockchain system, the information is relatively independent, and big data is focused on the integration of information analysis;
• Direct vs Indirect: Blockchain system itself is a database, and big data refers to the deep data analysis and data mining, which is an indirect data;
• Math vs Data: Blockchain trying to use mathematics to verify that code is the law, and big data trying to use data to verify;
• Anonymous vs Individual: Blockchain is anonymous( open ledger, anonymous owners, the open account with respect to the traditional financial institutions, account confidentiality), and big data is intended to personalize;

Whether the difference can be reconciled?、

For a distributed system, exsisting CAP theorem, also called Brewer’s theorem, it is pointed out that a distributed system cannot satisfy the following three points:

• Consistence: All the backup data in the distributed system, whether the same value at the same time.
• Avaliability: After a part of nodes failed, whether the whole cluster can respond to the client’s read and write requests.
• Partition tolerance: If some nodes in the cluster are unable to communicate with each other, whether the whole cluster can continue to provide service.

Due to the issues of packet delay and loss for the current network hardware, and the partition tolerance is needed. In other words, CAP indicates that we must show the trade-offs between consistency and availability.

Specific to the Blockchain and Big data, big data is to sacrifice consistence in exchange for availability and partition tolerance, while Blockchain gives the priprity to ensure consistency.

Big data VS. Blockchain Part 1

Common keyword: Distributed, which means the transferring from technological monopoly to distributed technology.

Distributed storage: HDFS VS. Block

Big data, which should meet the requirements for the massive and rapid growth storage space, and it is a great cost for underlying hardware architecture and file system compared with traditional technology, then can be flexible for the expansion of storage capacity. Google’s GFS and HDFS has laid the groundwork for big data storage technology. In addition, there is another challenge for storage about the data formats. So the storage architecture of underlying storage layer is not just HDFS, as well as HBase and Kudu.

Blockchain, which is the underlying technology architecture for Bitcoin, and it is a kind of distributed ledger. As a sustained growth data structure with ordered blocks, all of the nodes involved in computing and recording through nework, to verify the efficiency of mutual  information. From this point, blockchain technology is a specific kind of database technology. Due to the characteristics of secutity and convenience for the distributed database, many industry insiders believe that it is the upgrade and supplement for the exsiting Internet technology and it will have a optimistic future.

Distributed computing: MapReduce VS. Consensus mechanism

Data mining is a kind of data intensive computing, which requires a large amount of distributed computing capabilities. And the key techbology is for nodes management, task scheduling, fault-tolerant and high reliability. MapReduce of Google and Hapoop is a representative of such distributed technology, and it can improve the scale out ability for the extened linear system by adding server noedes, to reduce the cost and enhance the scalability. Nowadays, in addition to batch computing, big data also includes the flow calculation, graph computing, real-time computing, interactive query and other computing framework.

Consensus mechanism of Blockchain is to reach a consensus among all the distributed nodes, to generate and update data through the algorithm, then to determine the effectiveness of a record, which represents a means of identification and a way to prevent tampering. Blockchain mainly includes four different consensus mechanisms, which can be suitable for different application scenarios, to reach a balance between efficiency and security. Take Bitcoin as an example, the Proof of Work (POW), it is possible to forge a record only by taking control of more than 51% accounting nodes in the whole network.

Wang Maolu participates in the initiated project about “electronic evidence standard”

Baoquan participates in the initiated project for the electronic evidence standard, which is instituted by information and communication institute for technology and standard, and together with the famous e-data attestation enterprises like Meiya Pico, State internation center and so on. The meeting has discussed the necessity of the establishment of standard, the process for electronic data attestation, technical requirements, plarform verification requirements and so on, and then reached to a consensus drafting. During the meeting, Wang introduced the e-evidence application with blockchain technology, and the services of Baoquan,com as a SAAS platform for Blockchain attestation.

Under the general informatization trend of evidence, the electronic evidence attestation that based on computer and network plays a more and more important role in the process of facts proving. 《Electronic evidence standard》is an important index for electronic evidence, the legality of electronic evidence should be defined by the laws, and all the processes like provide evidence, evidence collection should be with the law. The materials for proving the case should be adopted without the concern for legality, but not every piece of evidence can be used in judicial and law activities, and legitimacy is one of the most important standards for evidence collection.

In the age of information, electronic evidence should solve the problems of fraud and forgery, and Wang indicated that using the new technology to slove the authenticity of electronic evidence is an inevitable trend in the most effective way, then to reduce the cost and improve the efficiency. The prime minister Li Keqiang also encourages society to ues the new technology——Blockchain. And its characteristics of immutability and transparency can ensure the reality of electronic evidence on the collection chain. All in all, 《Electronic evidence standard》should connect the tranditional evidence collection way with new technology, together to improve the efficiency and reliability.

Value transfer for Blockchain integral application Part 2

Application value for Blockchain integral

The basic for Blockchain value transfer is to establish a credit mechanism. As a digital asset with real value, how to design a credible mechanism with other businesses to form a new and equal business alliance, which can not only guarantee the opening win, but also with high degree of autonomy. It is the key to realize value transfer for Blockchain integral application.

Compared with the traditional integral exchange platform, adding the user exchange channel to it, but it caused the loss of customers and damage of brush machine, and the platform is also difficult to achieve a higher commercial value. In view of these pain points, to truly implement the business flow of cross domain integration, blockchain technology as a distributed trust network technology, has the potential to against the pains, so that partners are involved in the transaction, lydger storage, real-time clearing, then to fundamentally innovate business model.

The Alliance Party has full autonomy with non repudiation. Block chain technology support for the functions of integral like digital assets distribution, donation, payment and settlement. Alliance participants can constitute the center node for Blockchain, to realize the common supervision. A party (enterprise) use their own signature to ensure the immutability, other people can use the public key to confirm the authenticity. Consumer use his private key again in circulation to ensure this payment. All the processes will be recorded in the Blockchain with integrity and reality.

The alliance parties  jointly formulate common rules, meet the right of supervision to different levels. There is no discrimination in the rules, and it has equal treatment to the alliance members regardless of size; Secondly, the common interests of the league are reflected in the rules, and the rules explicitly reward rules maintenance behavior contrary to the rules of disciplinary behavior. Finally, these rules were written in Blockchain code, and automatically executed by system with real-time effect, without manual intervention.

Blockchain Integration Application Ecosystem

The architecture of Blockchain is very flexible, and reflecting the strong decentralization and scalability in the construction of the new integral ecosystem process. As shown in the following figure, the upper application is the user end and insititue end, background of integral is the third party wallet, data analysis provider, while the bottom is the complete Blockchain solution.

• For the institute, access mode of Blockchain bottom is API, provide service interfaces for user registration, integration issue, consumer records, and user oriented services. Take integral issue as an example, integral publishers registered an institution account first by integral wallet, generates a pair of account and private key by the blockchain bottom; Then businesses get their assets issued account, you can issue their own integral, integral assets to the blockchain bottom. After successfully issued, the issuer can see the number of assets on their own account.
• For the user, the core functions are the user experience and digital asset management, rather than to emphasize blockchain technology itself. First of all, to ensure the user experience in the integral circulation process. For example, through the third party integral wallet, as shown in the following figure, the payment can be achieved easily, to form a closed loop, truly reflect the integral value.

Then to ensure the security of integral digital assets. Blockchain has no center or third party agencies responsible for the management, other nodes will continue to verify and store transaction data even a node broke down. Through the distributed shared ledger structure of Blockchain, key signature transactions and consensus algorithm, it can build a more secure underlying system compared with the traditional distributed system. In the future, in addition to the integral digital assets, Blockchain can be applied in other kinds of digital assets such as equity, music copyright and so on.

Value transfer for Blockchain integral application

Blockchain technology dependents highly on the scene due to its Internet property, can not be divorced from the scene to further development. But limited by the processing efficiency and standardization, blockchain technology is not suitable for high frequency scene, in order to avoid the expense of user experience. And the integral as a common means of promotion, with variety scene but low frequency. Use blockchain technology characteristics of distributed and consensus to reconstruct integral win-win ecosystem with high degree of autonomy, to eliminate the pain points.

Blockchain promote renovation for business mode

Transaction processing mode of blockchain technology has great difference compared with the traditional mode, it designs rigorous and orderly data structure at the technical level, introduced to build, share, strong supervision mechanism, and construct a set of distributed shared ledger to increase the network trust. Overall, blockchain technology is a collection of a variety of existing technologies, including distributed dynamic network (P2P), irreversible hash algorithm and consensus mechanism.

• For the P2P perspective, Blockchain system adopts distributed deployment mode for multi center, there is no subordinate relation between each center; Deploy the same system, share the same data, collaborate data validation and consistency of storage, all these will be done in the case of equal status.
• For the view of Blockchain hash algorithm, it can minimize the friction coefficient. The block is the information storage medium, each block contains the index data of the previous block, establish a blockchain, end to end. Using digital signature to ensure the authenticity, timing and integrity of the data.

For consensus mechanism, it is the core technology of Blockchain. Consensus mechanism undertook transaction verification and validation. It can solve the traditional distributed consensus problem, maintain a unified network ledger, and resist the malicious attacks, to ensure the accuracy of transactions. The blockchain consensus mechanism is widely used in the field of finance. According to different application scenarios, there are different strategies in the selection of these consensus nodes.

Blockchain in mutual insurance Part2

Blockchain is a distributed ledger, if needed, each participant can see the detail cost of mutual insurance with others through Blockchain, to know the time of joining patients mutual health plan, and the investment data will not be tampered with, which effectively solve the isuues from accounting, data transmission, verification, trust problem in the process of contract execution, largely avoid the credit risk of data tempering at mutual security platform.

Take blockchain technology into mutual insurance, when participants fell ill, all members can learn the participant time of the mutual guarantee programme through public channels, since the data cannot be tampered with, information authenticity on the Blockchain platform can be solved effectively. The personal data information of each participant would be encrypted and storaged into Blockchain platform based on the characteristics of the distributed  ledger. Through the Blockchain network, each user can know you need to fulfill mutual security agreement, also can check all members' information, and information and mutual security requirements of diseased participants, and record all the information of the public, certification, contract execution. Anyway, it can solve security issues of responsibility from regulators.

With blockchain technology, mutual insurance still need to face the problem of compliance in domestic. Important purpose of  blockchain technology, is to promote mutual security of the whole operation process in a more transparent way, rather than using blockchain  for "edge ball" of policy.

Blockchain in Mutual insurance

Blockchain technology provides a solution to solve these problems of mutual insurance, which based on the Blockchain platform for network mutual application, to maximize the security guarantee of fund, agreement and information, then to improve the ability of risk control.

• Transparency of capital flows

Keep all detailed capital flows in Block chain, data cannot be tampered with or forged, to ensure data reality, and all regulatory agencies, public media, ordinary users can check and supervise at any time.

• High efficiency of rule execution

Funds transfer is executed in accordance with the open and immutability smart contract, once determined, it can be executed accurately without any intervention, which improve the efficiency of rule execution.

• Information Security

All of the personal sensitive information will be encrypted, no one can access to or steal the data without user’s authorization.

• Never for Service downtime

Mutual network running on the public chain does not rely on a central server, to ensure the provided service never be down at any moment.

Nowadays, the disputes between the insurance company and insured, still happen sometime. The insured falsify the claim information to obtain high compensation insurance; The insurance salesman falsify the insurance policy to obtain insurance premium of the insured. All these problems occur due to the lack of authentic ways for data collectiona and data storage.

With the development of medical information digitization and personal credit system, more and more authoritative data can be recorded in Blockchain, and will be accompanied by each person with digital identity, the recorded data with immutability and reliability can synchronize at any time, bring great benefit for risk management of the insured.

• All the data will be opened between different companies for mutual reference, so as to find the information like duplicate insurance, historical claims, and detect high-risk users in time.
• Recording the data from different industry in Blockchain, which can improve the accuracy and efficiency of  insurance claims.

Even blockchain technology has good prospects for application, like a new technology in early stage, and many aspects have caused concerns for the industry.

Overall, financial service institutions should continue to explore and develop new technology which is suitable for financial application.

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