Why does blockchain matter to Big Data? Bruce Pon, CEO and Co-Founder of BigchainDB talks about how blockchain and big data work together. Follow BigchainDB on LinkedIn, download the whitepaper or sign up with at the IPDB Foundation to get access to a first test network build with BigchainDB to build your own blockchain application.

1. Database for the Internet
Why Blockchain Matters to Big Data
Big Data Meetup London
Nov. 3, 2016
Bruce Pon
@brucepon

2. What is a Blockchain? Global View
Business LegalTechnical
All-in-one system that unlocks immense value -
value exchange, database, validation mechanism

3. What is a Blockchain? Component View
Database EncryptionConsensus

4. What Is a Blockchain? Feature View
Decentralized Asset
Autonomy
Immutable
A pragmatic definition that allows for an expanded opportunity
surface and blue ocean thinking

5. The First Use Case for Blockchain
Bitcoin is a cryptocurrency, that uses the underlying characteristics
of blockchain to issue a digital currency
= Blockchain
Bitcoin is an implementation
of the technology
Blockchain is the core
technology

6. Blockchain Disrupts Centralized Parties
Trusted Third Parties • Shared Single Source of Truth
• Conducted via consensus rules
• Enforced with transparency

7. Centralized Blockchain Model
Centralized to Decentralized
Strengths:
1. Lower coordination overhead
2. Efficient
Weaknesses:
1. Centralized power
2. Silos
3. Hackable

8. Centralized Model Decentralized
Centralized to Decentralized
Strengths:
1. Real-time Processing
2. Hack-resistant
3. Asset autonomy
Weaknesses:
1. Performance & Scalability
2. Governance & Security

9. Blockchain technology allows
The Digitization of Value
• Next wave of digitization
• Weave into the fabric of our society
• Larger than the internet

10. 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

11. 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

12. Image Credits: Ripple
Blockchain Technology will Impact $100 Trillion in Value

13. The “Real” First Use Case for Blockchain
Source: http://www.looiconsulting.com/wp-content/uploads/2014/08/Four-Vs.png

14. 3 Ways to Unlock Big Data with Blockchains
Decentralized Asset
Autonomy
Immutable
Shared
Control
Universal
Exchange
Audit
Trails

15. 3 Ways to Unlock Big Data with Blockchains
Shared
Control
Universal
Exchange
Audit
Trails

16. 3 Ways to Unlock Big Data with Blockchains
Shared
Control
Universal
Exchange
Audit
Trails

17. Audit Trails for Big Data Using Blockchain

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

19. Global Database

20. 3 Ways to Unlock Big Data with Blockchains
Shared
Control
Universal
Exchange
Audit
Trails

21. Example: Data Pipeline
IoT
Sensors
HDFS
Storage
Cleaning
Normalization
MongoDB
Storage
Analytics

22. Creating Immutable, Time-Stamped Data
Create
Tx
Write to
DB
Sign
Tx
Or if you’re already using a distributed database that BigchainDB wraps, then
simply swap out that database with it’s blockchainified version.

23. BACK OFFICE EFFICIENCY SUPPLY CHAIN RISK MODELS
Unlocks Data Lakes and Big Data Tools
Data Transparency

24. 3 Ways to Unlock Big Data with Blockchains
Shared
Control
Universal
Exchange
Audit
Trails

25. Digital Assets
Digital assets which have value and can’t be copied.
TOKENS TICKETS SECURITIES CREDIT CURRENCY

26. 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

27. Assets “Live” in the Network

29. A scalable blockchain database for the decentralized enterprise
Anatomy of a Diamond Fraud
Proof-of-Concept
January 2016

30. Case Study: The Diamond Supply Chain
30
• 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

31. What is Diamond Fraud?

32. How Detect Fraud?

33. Let’s Scrape for Data

34. Anatomy of a Diamond Fraud
34

36. Anatomy of a Diamond Fraud
36
• Diamond listing identified
• Three fraud indicators are found:
1. Offer price is suspiciously low
2. Is the Certification Lab
trustworthy?
3. “Appraisal” value serves as a
mental anchor to convince buyers
that they’re getting a deal

37. Anatomy of a Diamond Fraud
37
• 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

38. To get started with blockchain apps and use cases,
Sign up for early access at:
https://ipdb.foundation/ipdb-testnet

39. - 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.

40. Thank You
@brucepon
bruce@bigchaindb.com