- Research shows that blockchain technology will increase overall data quality by over 50% in the next three years.
- However, the overall data availability to organizations in various sectors of the economy will dip by 30% or more by 2023.
In a new report, “Predicts 2020: Data and Analytics Strategies — Invest, Influence and Impact” by Gartner Inc., a global research and advisory firm, the overall data accuracy and quality is set to boost by 50% in the next three years due to blockchain technology adoption. Companies that adopt blockchain smart contracts will however have to do with less data as the middle men (third party data collectors) get annihilated from the P2P system.
According to the pay-walled article, companies that adopt blockchain technology and transact using smart contracts are set to improve their data quality by 50% by 2023. Lydia Clougherty, senior researcher at the firm sees the adoption of blockchain as a key differentiating factor in all businesses and organizations as she wrote in a recent blog,
“When an organization adopts blockchain smart contracts, whether externally imposed or voluntarily adopted, they benefit from the associated increase in data quality.”
A (net positive) tradeoff?
The report however warns on the reduced availability of data as the companies that acted as middlemen to collect and sell the data are cut off by peer to peer blockchain systems. In the next three years over 30% of the data available to companies will be cut off according to the report as these companies are cut off. Is this a healthy tradeoff?
Well, according to the report, the net effect is positive for data analysts and researchers who despite losing the ease of data collection will see their return on investment rise steadily as adoption rises. However, the smart contract technology is still way behind in adoption as the report states and a lot is yet to be done to increase global adoption.