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What is Big data in simple words? Application and perspectives of big data

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After 10 years, the world will move into a new era – the era of big data. Instead of a weather widget on the smartphone screen, he himself will tell you what is best to wear. At breakfast, the phone will show the road along which you will quickly get to work and when you need to leave.

Under the influence of Big Data, everything that a person does not touch will change. We will figure out what it is, and also consider the real application and prospects of the technology.

What is Big data?

Big data is an information processing technology that surpasses hundreds of terabytes and grows exponentially over time.

Such data is so large and complex that none of the traditional data management tools can store or efficiently process it. A person is not able to analyze this volume. For this, special algorithms have been developed that, after analyzing big data, give a person understandable results.

Big Data includes petabytes (1024 terabytes) or exabytes (1024 petabytes) of information that make up billions or trillions of records of millions of people and all from different sources (Internet, sales, contact center, social networks, mobile devices). As a rule, information is poorly structured and often incomplete and inaccessible.

How does Big-Data technology work?

Users of the social network Facebook upload photos, videos and perform actions every day for hundreds of terabytes. No matter how many people participate in the development, they will not cope with the constant flow of information. In order to further develop the service and make sites more comfortable – introduce smart content recommendations, display ads relevant to the user, hundreds of thousands of terabytes are passed through the algorithm and receive structured and understandable information.

Comparing a huge amount of information, it finds the relationship. These relationships are likely to predict the future. To find and analyze a person helps artificial intelligence.

The neural network scans thousands of photos, videos, comments – the very hundreds of terabytes of big data and gives the result: how many satisfied customers leave the store, whether there will be a traffic jam in the coming hours, what discussions are popular on the social network and much more.

Methods of working with big data:

  • Machine learning
  • Mood analysis
  • Social network analysis
  • Learning Rules Association
  • Classification Tree Analysis
  • Genetic Algorithms
  • Regression analysis

Machine learning

You look at the news feed, like Instagram posts, and the algorithm examines your content and recommends similar ones. Artificial intelligence learns without explicit programming and focuses on forecasting based on well-known properties extracted from sets of “training data”.

Machine learning helps :

  • Distinguish between spam and non-spam email
  • Explore user preferences and give recommendations
  • Identify the best content to attract potential customers.
  • Determine the probability of winning a case and set legal fees

Mood analysis

Mood analysis helps :

  • Improve hotel chain service by analyzing guest comments
  • Customize incentives and services to meet customer needs
  • Determine from opinions on the social network what customers are thinking.

Social Network Analysis

Social network analysis was first used in the telecommunications industry. The method is used by sociologists to analyze relationships between people in many fields and commercial activities.

This analysis is used to :

  • See how people from different population groups form relationships with outsiders
  • Find out the importance and influence of a specific person in a group
  • Find the minimum number of direct connections to connect two people
  • Understand the social structure of the customer base

Learning Association Rules

People who don’t buy alcohol take juices more often than lovers of strong drinks?

Studying association rules is a method for discovering interesting relationships between variables in large databases. For the first time, it was used by large supermarket chains to discover interesting relationships between products using information from supermarket outlet systems (POS).

Using association rules :

  • Place products closer to each other to increase sales
  • Extract website visitor information from web server logs
  • Analyze biological data
  • Track system logs to detect intruders
  • Determine if tea shoppers take sodas more often

Classification Tree Analysis

Statistical classification defines the categories to which the new observation belongs.

Statistical classification is used for :

  • Automatic assignment of documents to categories
  • Classification of organisms into groups
  • Developing profiles of students taking online courses

Genetic Algorithms

Genetic algorithms are inspired by how evolution works, that is, through mechanisms such as inheritance, mutation, and natural selection.

Genetic algorithms are used for :

  • Scheduling doctors for emergency departments in hospitals
  • Calculation of optimal materials for the development of fuel-efficient cars
  • Creating “artificially creative” content such as puns and jokes

Regression analysis

How does a person’s age affect the type of car he buys?

At a basic level, regression analysis involves manipulating some independent variable (like background music) to see how it affects the dependent variable (time spent in the store).

Regression analysis is used to determine:

  • Customer satisfaction levels
  • How the weather forecast for the previous day affects the number of calls to support
  • How the area and size of houses affect the price of housing

Data Mining – how Big Date is collected and processed

Uploading big data to a traditional relational database for analysis takes a lot of time and money. For this reason, special approaches have appeared for the collection and analysis of information. To obtain and then retrieve the information, combine and place it in a “data lake”. From there, artificial intelligence programs using complex algorithms look for repeating patterns.

Storage and processing takes place with the following tools:

  • Apache HADOOP is a packet-oriented data processing system. The system stores and tracks information on several machines and scales to several thousand servers.
  • HPPC is an open source platform developed by LexisNexis Risk Solutions. HPPC is known as the Data Analytics Supercomputer (DAS), which supports data processing both in batch mode and in real time. The system uses supercomputers and clusters from conventional computers.
  • Storm – processes information in real time. Uses the open source Eclipse Public License.

The real application of Big Data

The fastest growth in spending on big data technology occurs in the banking, healthcare, insurance, securities and investment services, as well as in telecommunications. Three of these industries are in the financial sector, which has many useful options for Big Data analysis: fraud detection, risk management, and customer service optimization.

Banks and credit card companies use big data to identify patterns that indicate criminal activity. Because of this, some analysts believe that big data can benefit cryptocurrency . Algorithms will be able to detect fraud and illegal activities in the crypto industry.

Thanks to cryptocurrencies such as Bitcoin and Ethereum, the blockchain can actually support any type of digitized information. It can be used in the Big Data field, especially to improve the security or quality of information.

For example, a hospital can use it to ensure the safety, relevance of patient data and to fully preserve their quality. By placing health databases on the blockchain, the hospital provides all its employees with access to a single, unchanging source of information.

Just as people associate cryptocurrency with volatility, they often associate big data with the ability to sift through large amounts of information. Big Data helps track trends. A lot of factors influence the price and big data algorithms will take this into account and then provide a solution.

Prospects for Using Big Date

Blockchain and Big Data are two evolving and complementary technologies. Since 2016, blockchain is often discussed in the media. This is a cryptographically secure distributed database technology for storing and transmitting information. Protecting private and confidential information is an urgent and future big data problem that the blockchain can solve.

Almost every industry has begun investing in Big Data analytics, but some are investing more than others. According to IDC, they spend more on banking, discrete manufacturing, process manufacturing and professional services. According to Wikibon research, revenue from sales of programs and services on the world market in 2018 amounted to $ 42 billion, and in 2027 it will overcome the mark of $ 100 billion.

Neimeth estimates that the blockchain will account for up to 20% of the total big data market by 2030, generating up to $ 100 billion in annual revenue. This exceeds the profit of PayPal, Visa and Mastercard combined.

Big Data analytics will be important for tracking transactions and will allow companies using the blockchain to identify hidden schemes and find out who they interact with on the blockchain.

Big data market in Russia

The whole world, including Russia, uses Big Data technology in banking, communications and retail. Experts believe that in the future technology will be used by the transport industry, the oil and gas and food industries, as well as energy.

IDC analysts have recognized Russia as the largest regional BDA market. According to estimates this year, revenue will approach $ 1.4 billion and will account for 40% of total investment in the big data sector and business intelligence applications.

Publication date 08/22/2019
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Robert Kiyosaki: Bitcoin will be the future of finance, unlike real estate and gold

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Robert Kiyosaki, author of the best-selling book Rich Dad, Poor Dad, said real estate and gold investments cannot be the future of finance, as cryptocurrency has come into the spotlight. The entrepreneur, who several times this year called the ideal investment portfolio to invest in gold, real estate and bitcoin, now believes that only cryptocurrency will strategically win.

In an interview with Anthony Pompliano, managing partner of cryptocurrency investment company Morgan Creek Capital, Kiyosaki said that you really need to look “beyond the horizon” of the current financial situation. He admitted that it was not easy for him to understand the phenomenon of cryptocurrencies, but nevertheless he made an effort, conducted an analysis and made certain conclusions.

According to Kiyosaki, bitcoin will reach the level of 75 thousand dollars within three years.

“It is very important to understand how cryptocurrencies work, as the financial world is already starting to change. Those investors who will continue to rely on gold and real estate will find themselves outside the main changes in the sphere of global finance. ”

The entrepreneur made his forecast while on July 9 a troy ounce of gold reached almost a 9-year high (about $ 1800), if we do not take into account the accumulated inflation in the US dollar.

Meanwhile, the precious metal has not reached the historical maximum of 2011, since for this formally a troy ounce it is necessary to rise above $ 1900, but in fact – it is sure to overcome the mark of $ 2050, given the accumulated devaluation in the US currency.

Recall that entrepreneur Kim Dotkom and billionaire Mike Novogratz declared their investment preferences in the form of gold and cryptocurrencies .

Date of publication 07.15.2020
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Staking and cryptocrediting – which is more profitable than stablecoins or PoS cryptocurrencies?

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In this article, we will consider the prospects of cryptocurrency staking as a new way of passive earnings, about the differences between staking and cryptocrediting, as well as about the main platforms designed for this.

If you have not been interested in staking before, then a variety of coins and platforms that support this type of passive income can make you dizzy. And with the advent of stablecoins, the choice has become even wider. What type of coins is better in terms of profit and risk?

Cryptocurrency Staking in 2020

A year ago, cryptocurrency staking was much simpler than now. The cryptocurrency market was attended by only a few specialized platforms, a pair of popular cryptocurrencies and approximately the same rate of return.

But these times have passed: in 2020, staking has grown into a serious segment of the crypto industry for several reasons.

  • Firstly, the market now has more than 30 PoS coins that support the possibility of staking.
  • Secondly, many kriptobirzh now there own PoS-nodes – an interesting alternative to special steykingovym platforms.

Moreover, now investors are provided with staking and deposit accounts in stablecoins, which allow minimizing risk and getting profitability at the level of PoS-coins or even higher. What to choose?

To find out, you need to compare the two main options on the market (PoS coins and stablecoins), according to a number of clear criteria. However, an important reservation must first be made about the nature of staking.

Staking and cryptocrediting are not the same thing

Coins that use the Proof-of-Stake (PoS) consensus algorithm – Tezos, Cosmos, BIP, and LOOM – initially support staking. While the value of stablecoins is tied to a specific asset – for example, to the US dollar.

Stablecoins are not available for styling, but loans – coins are issued as a loan to another user who pays a deposit in response. However, for investors there is no particular practical difference between staking and lending. That is why one can hear on the cryptocurrency market, for example, about “USDC staking”.

Real ROI and Volatility

Let us compare the return on investment in PoS coins and stablecoins and how this indicator is affected by the volatility inherent in the crypto market.

  • PoS coins . Each coin has its own nominal rate of return built into the algorithm. For example, for Cosmos (ATOM) it is 8.35%. However, a really important value is the real profitability, which is calculated on the basis of price changes for any period. For example, if you invested $ 10,000 in the stake of ATOM coins on January 1 of this year, then by June 1 you would have received a nominal income of about 3.5%. Instead of 2309 coins, you would have 2390. However, over the same period of five months, the price of a coin fell by more than 30%: from $ 4.33 to $ 2.96. The cost of the steak, along with interest, would be only $ 7075, and the real ROI would drop to -30%.
  • Stablecoins . Everything is simple with them: what rate is declared, the investor receives such ROI, minus the platform commissions. On cryptocrediting platforms, the rates are quite stable and allow you to predict income: for example, if you pay 1.94% per annum for USDC deposits on Fulcrum platform, then your profit in dollar terms will also be 1.94%, unless something out of the ordinary happens the USDC coin will not lose its peg to the US dollar.

Verdict: on average, the real ROI of stablecoins is higher and more predictable, as there is almost no volatility. A PoS coin can suddenly increase in price and bring profitability of 20% or more, but it can also lose half its value.

Number of platforms available and conditions

Next, we compare the number of available platforms for staking PoS coins and stablecoins and the conditions that they offer to holders.

PoS Coins

Dozens of platforms offer staking popular coins like Tezos and Cosmos. These sites can be divided into two categories:

  • Specialized sites are Staked, Staking Lab and Dokia Capital, among others.
  • Crypto exchanges – Bitfinex, Kraken, and KuCoin are among the smaller platforms.

Of course, platform competition is good for investors, but such a wide choice also means that you have to spend more time searching for information.

Having chosen a coin, it will be necessary to study the rates of return taking into account the commission at different sites, as well as assess the risks of each of them. Moreover, commission rates on different platforms can vary greatly, which affects the investor’s income. For example, for the ATOM coin, the Binance exchange promises a yield of 6–9% per annum, while on Stakin this figure will be 9.1%, and on Gate.io – only 6.1%.

Stablecoins

This type of digital asset can be deposited on various lending platforms:

  • Centralized – BlockFi, CoinLoan, Nexo, as well as a number of exchanges – Binance , Bitfinex, Poloniex.
  • Decentralized – Compound, Nuo, dYdX, Aave and others.

It should be borne in mind that different lending platforms can offer completely different rates for the same coin. For example, deposit income in USDC ranges from 1.25% to 8.6%.

Verdict: by the number of platforms, ordinary staking coins win. However, in the case of staking or lending in stablecoins, choosing a platform is easier: you do not have to compare so many options.

Risks: interest in the project

We have already mentioned volatility as a key risk factor. When staking stablecoins, the investor receives a reward in cryptocurrency , which can often be exchanged for fiat. But staking PoS-coins can lead to losses due to volatility. Another factor by which it is worth evaluating the profitability of investing in a PoS coin is the level of interest in a particular coin.

Stablecoins have a significant advantage: they were originally created as a reliable way to store and transfer funds between participants in a transaction. In the current crisis, investor interest in stablecoins can only grow. On the other hand, each PoS coin is a cryptocurrency of some kind of blockchain project , which can both succeed and fail. If the founders do not launch the product, then the price of the token may fall.

Another risk factor is the platform on which staking takes place. Both for stablecoins and for PoS-coins, both centralized (custodial) and decentralized (non-custodian) platforms are available. A cryptocurrency exchange like Binance is a classic example of a custodial solution: you transfer coins to the exchange for storage. If she is attacked by hackers, your steak may disappear.

In the case of non-custodian platforms, the risk of theft or fraud is quite low. It doesn’t matter which asset to use when staking or depositing and where: USDC – on Compound, USDN – on Waves․Exchange, XTZ – on P2PValidator.

And vice versa: on custodian platforms, the risks are higher, both in the case of providing stablecoins on credit, and in the case of PoS-coins staking. And since the bulk of PoS staking passes through exchanges such as Bitfinex and Binance, we can conclude that, on average, the risks of owners of PoS assets are more serious.

Verdict: PoS coins are more risky, because their price is highly dependent on both interest in the blockchain project itself and market sentiment. It is safer to choose non-custodian platforms for both types of coins.

Output

Nominal rates of return for PoS coins are often very attractive, but price fluctuations can lead to negative profitability. In the case of stablecoins, a positive result is almost guaranteed. At the same time, you should not expect earnings on stablecoin more than 15-17%, although it is possible with a PoS asset.

Ultimately, the choice should depend on your personal attitude to risk. Investors who are willing to take risks in the hope of earning super-high returns should invest in a classic PoS coin – for example, Tezos .

If it is important for you to keep the investment (especially in the case of large amounts), then stablecoins are definitely preferable due to the better risk-to-ROI ratio.

As the global economic crisis deepens, more and more investors will acquire crypto assets. This will undoubtedly change the market balance in the segments of staking and cryptocredit. How exactly? We will find out soon.

Date of publication 09.07.2020
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Binance Exchange added the ability to purchase cryptocurrency from Mastercard

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This Friday Binance Exchange announced the addition of the possibility of buying cryptocurrencies using bank cards in the Mastercard system.

The service covers 19 countries, including Russia and Ukraine. There are no other CIS countries on the list yet.

To use the option, you must log in to your personal account at https://www.binance.com/ , go to the “Buy Cryptocurrencies” tab and select payment using a bank card. Bitcoin, Ethereum, XRP, Binance Coin, USDT and some other assets are available for direct purchases from Mastercard cards.

Previously, users already had the opportunity to buy cryptocurrency on Binance using Russian Visa cards.

Also this morning, Binance CEO Changpen Zhao hosted another live broadcast at Periscope. Zhao’s speech mainly covered the latest achievements of the exchange, including the launch of the Binance Card , mining pool , Binance KR, OTC portal, as well as cooperation with Brave and the acquisition of CoinMarketCap . In addition, Zhao recalled the need to maintain social distance.

“We have completed the initial development of platforms, and now I think it is important for us to support mining , since bitcoin mining is now centralized. We want more players to take part in it, as well as support existing players, ” he said.

In addition, on his Twitter, Zhao shared a screenshot testifying to the preparation of the exchange for the launch of option trading.

He left no comments on this subject. In the main Twitter account of Binance, a list of tasks for testers that was “publicly available” was posted. Among other things, it includes the item “test option trading”.

Publication date 04/04/2020
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