why blockchain matters to big data - big data london meetup - nov 3, 2016

Database for the Internet

Why Blockchain Matters to Big Data

Big Data Meetup LondonNov. 3, 2016Bruce Pon

@brucepon

What is a Blockchain? Global View

Business LegalTechnical

All-in-one system that unlocks immense value -value exchange, database, validation mechanism

What is a Blockchain? Component View

Database EncryptionConsensus

What Is a Blockchain? Feature View

Decentralized AssetAutonomyImmutable

A pragmatic definition that allows for an expanded opportunity surface and blue ocean thinking

The First Use Case for Blockchain

Bitcoin is a cryptocurrency, that uses the underlying characteristics of blockchain to issue a digital currency

= BlockchainBitcoin is an implementation

of the technologyBlockchain is the core

technology

Blockchain Disrupts Centralized Parties

Trusted Third Parties • Shared Single Source of Truth• Conducted via consensus rules• Enforced with transparency

Centralized Blockchain Model

Centralized to Decentralized

Strengths:1. Lower coordination overhead2. Efficient

Weaknesses:1. Centralized power2. Silos3. Hackable

Centralized Model Decentralized

Centralized to Decentralized

Strengths:1. Real-time Processing2. Hack-resistant3. Asset autonomy

Weaknesses:1. Performance & Scalability2. Governance & Security

Blockchain technology allows

The Digitization of Value• Next wave of digitization

• Weave into the fabric of our society

• Larger than the internet

The Internet Drove the Digitization of Information

Knowledge freely shareable for the world

spawned billion dollar companies:

- Amazon

- Google

- Facebook

Gave voice to the powerless

Connected the powerful

The blockchain is a truly open, distributed, global platform that fundamentally changes what we can do online, how we do it, and who can participate.

Call it the world wide ledger.

The Internet of Everything needs a Ledger of Everything.

- Don & Alex Tapscott

Image Credits: Ripple

Blockchain Technology will Impact $100 Trillion in Value

The “Real” First Use Case for Blockchain

Source: http://www.looiconsulting.com/wp-content/uploads/2014/08/Four-Vs.png

3 Ways to Unlock Big Data with Blockchains

Decentralized AssetAutonomyImmutable

SharedControl

UniversalExchange

AuditTrails


SharedControl

UniversalExchangeAudit

Trails

Audit Trails for Big Data Using Blockchain

Audit Trails for Big Data Using BlockchainSource: http://www.bloomberg.com/news/articles/2011-09-01/the-f-35-s-global-supply-chain

Global Database


SharedControl


Trails

Example: Data Pipeline

IoTSensors HDFS

StorageCleaning

NormalizationMongoDBStorage

Analytics

Creating Immutable, Time-Stamped Data

CreateTx

Write toDB

SignTx

Or if you’re already using a distributed database that BigchainDB wraps, then simply swap out that database with it’s blockchainified version.

BACK OFFICE EFFICIENCY SUPPLY CHAIN RISK MODELS

Unlocks Data Lakes and Big Data Tools

Data Transparency


SharedControl


Trails

Digital Assets

Digital assets which have value and can’t be copied.

TOKENS TICKETS SECURITIES CREDIT CURRENCY

Asset Sovereignty

$

BANK

COURT

EXCHANGE

Own your private data, intellectual property, financial assets, land property without the

reliance on others to secure it.

A truly global world where no government can take away what is yours

Assets “Live” in the Network

A scalable blockchain database for the decentralized enterprise

Anatomy of a Diamond FraudProof-of-Concept

January 2016

Case Study: The Diamond Supply Chain

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• Conducted 6 week Proof-of-Concept

• Entered 1 Mio diamonds into BigchainDB from multiple data sources – Certification Labs, pricing services, and marketplaces

• Developed custom analytics and machine learning tools to understand and assess the data

How much fraud is there on a major diamond marketplace?

Conclusion: 7% of all listings have RED flags and are most likely fraudulent. This works out $750 Million per year of fraud on a single marketplace

What is Diamond Fraud?

How Detect Fraud?

Let’s Scrape for Data

Anatomy of a Diamond Fraud

34


36

• Diamond listing identified• Three fraud indicators are found:

1. Offer price is suspiciously low2. Is the Certification Lab

trustworthy?3. “Appraisal” value serves as a

mental anchor to convince buyers that they’re getting a deal


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• Ascribe’s GemInSights is a backend prototype to monitor and track diamonds entering the supply chain – with a Rating scorecard that flags suspicious diamonds

• Findings - RED Flags:1. DGI lab

• Online Diamond ID Lookup function finds no diamond correlating to cert# on listing

• No sample certificates to show buyers authentic certificates

2. Price Estimator• List price is 70% less than

expected based on analytics it’s “too good to be true”

3. Related Sightings• Exact same listing has shown up

multiple occasions – once stored in BigchainDB, it’s immutable

To get started with blockchain apps and use cases,Sign up for early access at:

https://ipdb.foundation/ipdb-testnet

- Erik Brynjolfsson

Electricity is an example of a general purpose technology, like the steam engine before it. General purpose technologies drive most economic growth, because they unleash cascades of complementary innovations, like lightbulbs and, yes, factory redesign.

Thank You

@brucepon

[email protected]