Industry executives and experts share their predictions for 2019. Read them in this 11th annual VMblog.com series exclusive.
Contributed by Nathan Pitruzzello, Co-founder and CEO of Scroll
A New Era Coming for Blockchain
Until there is both a comprehensive understanding of Blockchain technologies and an understanding of when it is appropriate to leverage Blockchain, mass adoption will be halted. Fortunately, in the next five years we will see the growth in advocating funds to Research and Development, specifically to optimize the performance of distributing data across the internet without the dependence of centralized servers.
The implementation of on-chain storage will provide data recovery natively and in conjunction, the potential to significantly reduce data breaches. Alarmingly, just this October, there were 1,027 data breaches with 57,667,911 records exposed according to the Identity Theft Recovery Center (ITRC). By moving away from the public decentralized blockchain model, dependent on highly cost intensive computation, we will see companies designing systems that are governed by ownership of each piece of data which will compete with traditional storage solutions.
User Interfaces that support access of information decrypted by private keys will allow users to access data upon addition of that data to a ledger system. Businesses will truly own their data and will be able to operate complex high throughput data distribution without the need to manage a private server or depend on a centralized third party. The acceptance of this new technology has been encumbered by the learning curve and understanding of the limitations and potential areas of optimization collectively, however, now that those building the technology are focused on data security and identity management, the adoption of blockchain is around the corner.
The migration to distributed ledger technologies will be complemented with the onslaught of AI and more specifically, neural networks. These smart data integrations will be imperative to increasing the performance to match traditional bandwidth speeds and data aggregators. We need to teach a computer to focus on unique key pair generation to facilitate data tagging in order to utilize data written in a distributed ledger or on-chain data. It is also important to ease a new technology into existing business systems which means before private decentralized networks are in full swing storing “heavy blocks,” AI trained to extract smalls bits of information from documentation will be recorded to dictate and facilitate business agreements through immutable automatic digital smart contracts.
Data management systems that itemize each data entry so that data accessibility is automatically managed means that the flow of data accessed needs to be recorded so that companies that “own” or maintain client/customer/consumer data can adhere to GDPR regulations. All companies nowadays are data driven which means that the companies who usually hide behind vague and evasive located Terms of Use agreements will now be forced to notify its users when they are collecting user information. This will lead to an increase in “inverse ad-blockers” that will prevent the consumption of user information while using an online service. The other approach, once companies see a dip in their revenues which is usually attributed to data collection, will be to provide incentives such a coupon, discounts, upgraded features or even direct funds to sustain the consumers acceptance of allowing a business to profit off data collected.
The next era of Blockchain, mass adoption, is just around the corner, setting off greater security and data management.
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About the Author
Nathan Pitruzzello is the Co-founder and CEO of Scroll, a data management, security and storage company that is advancing present-day Blockchain technology. Nathan’s vision of accessing files from a connected file system web application quickly scaled to involve management of data on a Blockchain network as he has become well versed in peer to peer networking technologies. Nathan is driven by innovative technology because working on infant technologies allows for the chance to learn and directly impact a growing technology at its low level development phases. By developing a safer self-governed data storage alternative, Nathan hopes to bring back data privacy in a public world without compromising both security and availability.
