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How Small-Business Owners Can Use Blockchain And Big Data For Bigger Profits
According to a 2014 EY report, big data is changing the way businesses operate and outpace competitors. However, technology, or the lack of, has been an issue for the effective use of big data. This is all changing as more and more small businesses adopt blockchain technology. Small businesses can now analyze consumer data faster, with a higher degree of accuracy and more securely using blockchain-based protocols. Check out this article to learn how businesses can use blockchain and big data for bigger profits.
Marcela De Vivo
Marcela De Vivo is a marketing advisor for Brilliance, a trusted jewelry retailer with 25 years of experience.
According to a 2014 EY report, big data is changing the way businesses operate and outpace competitors. However, technology, or the lack of, has been an issue for the effective use of big data.
“While the ability to capture and store vast amounts of data has grown at an unprecedented rate, the technical capacity to aggregate and analyze these disparate volumes of information is only just now catching up,” the EY report details.
This is all changing as more and more small businesses adopt blockchain technology. Small businesses can now analyze consumer data faster, with a higher degree of accuracy and more securely using blockchain-based protocols. I am currently a marketing advisor for a cloud-based financial services platform. During my time with them, I have experienced and learned about the different uses of blockchain and the impact it will have on business-to-business industries, social media, marketing and even customer service. The applications of this technology are infinite, and we are just getting started!
The pairing of blockchain technology and big data has also cut cost and complexity, making it far more accessible to small business owners. Before we jump into the blockchain/big data relationship, let’s look at how big data can catalyze small business success.
Why Big Data Is Essential To Small Business Success
Big data has a lot of utility for small business owners. They can use data to make smarter marketing decisions, improve product quality, and nurture more meaningful customer relationships.
Benefits of big data for small businesses include:
• Improved Transparency: Big data puts information into your hands in real-time. This allows you to implement effective strategies based on current consumer behavior.
• Better Products/Services: Knowing the demands of your customers better allows you to develop products and services to meet consumer expectations. Big data also streamlines product and service improvements after launch, delivering quality throughout the life cycle.
• Competitive Advantage: Obtaining competitor insights faster lets small business owners position themselves better in their industry by seeing what competitors are doing differently.
The business benefits supporting big data are pretty clear. The expertise needed to make the most of big data analytics may be mind-bending for some small business owners. Luckily, technology is bridging the gap.
Blockchain Technology Makes Big Data Strategies Easily Accessible
All that is great about leveraging big data aside, only 23% of organizations have a big data strategy, according to IBM Big Data & Analytics Hub. Developing a big data strategy can be challenging for small businesses.
Enter blockchain technology, an innovative solution that makes developing a big data strategy cost-effective and user-friendly for small businesses. Now small business owners can increase their competitive stance by leveraging big data and analytics.
Artificial intelligence (AI) and machine learning blockchain platforms provide access to accurate data and business insights without software or data analytics experts. For example, Endor is a blockchain platform that combines AI and blockchain-based protocols to improve big data insight for businesses. Businesses can ask predictive questions and get highly accurate predictions via social physics technology.
How do businesses get predictions based on their questions? Consumers will opt-in to share their information with Endor. When consumers decide to opt-in, they get paid in EDRs that can be converted to cash or cryptocurrency.
MedRec is another excellent example of blockchain technology combined with big data in the medical industry. Using MedRec, patients can let others access their EHR community and approve changes and share between health providers.
Using Tokens For Small Business Marketing Initiatives
Small businesses know the value of focused marketing campaigns. Now that big data is easier to access and analyze via blockchain technology, there is no more need for marketing middlemen. These middlemen have been feeding marketers, advertisers, and small-business owners with inaccurate consumer data and personal browsing history for far too long.
By cutting out the middleman, businesses can get more accurate customer data straight from the customer. This is due to the decentralized and highly transparent peer-to-peer network of the blockchain.
How does this work? Using Basic Attention Token (BAT) to deliver ads to customers they have already opted-in to receive. This gives small-businesses owners a built-in consumer lead system. It’s a win-win, since customers get paid via BAT tokens based on their attention to the advertisements they agreed to see.
Real World Example Where Big Data Meets Blockchain Technology:
One company coupling blockchain technology with big data is Storj, an open source end-to-end storage solution. Storj launched with one aim in mind, pair cloud storage with a decentralized encrypted network.
By distributing big data over a decentralized network, they have made big data storage safer and far cheaper. Jeremy Epstein wrote in VentureBeat when Storj was testing last year, “One enterprise pilot phase rollout indicates this decentralized approach could reduce the costs of storing data by 90% compared to AWS.”
That is a massive cost reduction for companies. There are others entering the enterprise storage space, like FileCoin, MaidSafe and Sia. For instance, Sia software combines blockchain technology and big data to sort and segment files. The software also distributes the segments to assure that no one host has a single point of failure.
Blockchain technology adoption continues to trend as businesses, both large and small see the benefits. As it gains mainstream acceptance, the big data applications it supports will become more accessible. Gain the competitive advantage in your industry by applying blockchain technology to your big data strategy.