Big data and blockchain have played a very important role in the cryptocurrency industry. There are a lot of reasons that cryptocurrency traders are investing more heavily in big data technology. This is a big deal for investors trying to boost their revenue, but it also provides numerous benefits for other businesses.
This shows that the benefits of big data are often interlinked between industries. Companies that rely on new big data technology could indirectly benefit others. The cryptocurrency traders depending on big data are a prime example.
Big Data is Indirectly Benefiting Other Industries through Improvements in Cryptocurrency Trading
Popular media outlets have primarily focused on the growth of Bitcoin and Ethereum tokens, but the direction of the entire cryptocurrency industry seems to be headed upward. Legislative challenges and concerns about energy usage continue to temper the hopes of some economists, but the outlook is quite strong as a whole. That’s precisely why so many new firms are trying to climb on board in spite of the fact that the space is already crowded with so many entrenched companies.
These companies have found that big data has offered a number of big changes to their operations. Data-driven business models are very effective. They can be even more impressive when data-centric companies cooperate with other organizations using big data.
Chances are that those without large hardware investments won’t be able to contribute much in the way of mining. This is especially true of anyone who plans to use a mobile platform to generate tokens in any number as well as those who want to manage traditional CPU mining workflows. However, it shouldn’t be too difficult for those interested in trading futures to get started. Perhaps far more important, though, is the fact that countless engineers have found alternative uses for big data and blockchain technology.
Using Big Data to Trade Cryptocurrency Tokens Independently from Mining Operations
Big data is being leveraged heavily in the cryptocurrency industry. One way that cryptocurrency platforms rely on big data is through using tokens more efficiently.
New companies that are entering the space have found that it’s simply too costly to purchase all of the hardware necessary for mining. The fact that there’s been a run-on GPUs in the last few years has helped to drive this point home. However, anyone who has the infrastructure needed to trade traditional securities should find that they’re already empowered to trade cryptocurrencies.
Most firms that have at least some background in trading stocks or ETFs should find that their existing gear is more than adequate for the job. Selling a particular token to a blockchain-based exchange is every bit as easy as selling off a bond fund. Some companies have found it profitable to pool their resources together and engage in crypto day trading practices.
The major difference with conventional practices, however, is how the last six months have seen many cryptocurrencies dramatically outperform the market. Past performance shouldn’t ever be taken as an indicator of future performance, but it’s likely that the next 6-12 months will see continued growth in the value of some of these tokens.
Others have employed radically different methods of using blockchain-based software in their businesses. There’s recently been some discussion of storing data as records in a continuous cryptographic chain. While this would be somewhat slower than the binary trees that power most modern file systems, it couldn’t be tampered with after the data was written to a non-volatile storage medium. At first glance, this might look as though it were entirely different from trading cryptocurrencies, especially because it requires the use of software that’s alien to the financial community.
You might be surprised to learn just how similar it is, however.
Radical New Applications for Big Data and Blockchain-derived Software
One of the more dramatic applications of blockchain technology has been video sharing. While this might seem like an unusual combination, the rise of various censorship policies on popular social media platforms have ensured that some people are moving away from these traditional outlets. Instead, they’ve taken their content to blockchain-backed video storage sites that post all videos inside of a distributed ledger that’s difficult to remove anything from. There are already at least 300,000 content creators who have taken advantage of this kind of technology.
It’s likely that online podcast hosts will start to use a similar process in the near future as a way of avoiding some of the issues that come with having content posted on a server that they themselves don’t control. This should also help to eliminate the risk of inadvertent data loss because bad actors wouldn’t be able to mess with the underlying content.
That’s become increasingly important as some creators have claimed that they’ve experienced major losses as a result of outside tampering. Others have even gone so far as to say that cryptographic ledgers are an excellent way to ensure that nobody is ever able to impersonate them.
While that might seem like a far cry from the type of work being done by financial experts, it’s certainly all the result of the same kind of technology. The number of firms involved somehow with distributed ledgers is only expected to grow. Some nodes now carry over 250GB of data, and that poses some unique challenges that no other sector of the industry has.
It’s an almost sure bet that entrepreneurs as well as managers of existing firms will step up to the plate and begin developing heretofore unseen solutions to this issue. Those involved might enjoy unprecedented levels of growth in the process.