Blockchain seeks to boost data transparency within analytics

The buzz

Proponents believe blockchain builds data transparency.

Supporters say the technology is protected from abuse because there’s a copy of a given transaction for every user participating in blockchain. Previously established algorithms certify that an entry is valid; the blockchain rejects suspicious entries that the algorithms can’t verify, so the entire network of participating computers will dismiss any change that might corrupt the chain and threaten data transparency. Blockchain also shows potential for expanding analytics. For example, if blockchain provided various retailers with a full history of customer purchase patterns, those companies would enjoy a cornucopia of data that stretches across organizational boundaries, allowing analytics to better pinpoint buying trends and consumer preferences.

The reality

Despite the analytics possibilities blockchain presents, the business world isn’t at that point yet. Also, claims of blockchain being completely tamper-proof ring hollow. If a company, government or criminal could somehow gain control of the majority of nodes in a blockchain, the agreed-upon rules to certify transactions could be altered, according to Deloitte Consulting. Further cybersecurity may be needed. The technology also faces a perception issue because Bitcoin, a cryptocurrency built on blockchain, has garnered stigma after facing ransomware attacks.