What is data and why is it important in today's era? What is the role of blockchain in the data-driven economy and what do we need to not be left behind in the new economy?

What is data?

• A piece of knowledge just acquired by the brain

• An image saved on a phone

• A sentence typed on a keyboard

• A complex algorithm stored in the memory of the most advanced machines

Data exists in every aspect of life. They are information collected through various activities such as observation, measurement,... and stored in a memory. This memory can be the human brain, machines, or more advanced information systems.

An individual piece of data is often not too important, but when gathered enough, they can be used to cross-check, analyze and lay the groundwork for future actions.

Why is it said that the economy is driven by data?

The role of data

From its most primitive form, data has been learned through the evolutionary process of animals, including humans. Until today's economy, data is used to automate many different processes, simplifying work and increasing labor productivity.

Over time, the amount of data has increased, and the demand for larger storage with higher processing power has also increased. Operating larger storage requires more effort and financial resources. We called that storage a server.

Today, any business needs an information system, not just a computer. To operate and manage that system, businesses or individuals need a server. When a large set of data reaches a certain level, they are called big data.

With a large amount of data, those data are gradually selected, classified to produce better results. This continuous process of absorbing and processing data is called Deep Learning and is the foundation of artificial intelligence (AI) and Machine Learning (ML) technology. AI and "high-intelligence" machines are those with a lot of data, and that data is effectively processed.

On the positive side, AI helps improve product efficiency and optimize user experience. Technology giants such as Facebook, Google, Amazon, Alibaba, Tencent, etc. own the best AI, which helps them understand user behavior and trends to make relevant recommendations. Business management software also helps companies better understand their operations through data input.

However, AI's "learning" process requires more data, so AI can make inappropriate recommendations for users. More data allows the owners to trade with each other to increase their data ownership. Technology giants have a large proportion of revenue from advertising, which is exploited from user data.

Data helps flatten the world

Similar to the role of the internet for computers, the value of data is only realized when data sources are connected to each other. APIs were created to solve this problem. Simply put, an API is a key that allows this storage to access data from another storage. Utilizing existing data instead of starting from scratch helps optimize work efficiency and reduce costs.

For example, a ride-hailing application can purchase Google Maps API instead of conducting a terrain survey to redraw the map, and then integrate it into their application.

Individuals or organizations that do not want to bear the burden of storage but still want to optimize the efficiency of data can use cloud storage services. This is the process of users loading data into the storage of another party. The term cloud computing refers to the fact that users can use the memory of another party to process their data.

The above breakthroughs help connect data from all over the world, making the world flat

Data plays an important role in today's economy, they are the "oil" that provides energy for the operation of individuals and organizations. Breakthroughs in data help eliminate geographical barriers and bring the world to an unprecedented era of integration.

The position of blockchain in data-driven economies

Blockchain is also data storage, and if we consider the current economy as a collection of many storages, then a blockchain is one of them.

The main difference between blockchain and current storage or servers is that current storages or servers belong to and are operated by a single entity. They have full control over the data inside. On the other hand, the operation of storage in the blockchain is ensured by many different parties, and data on the blockchain does not belong to any single entity. This is the reason why blockchain has characteristics such as transparency, decentralization, and distribution, which provide a basis for breakthrough applications.

It should be noted that the data-driven economy is a vast market, and any keywords mentioned above such as AI, Machine Learning, Cloud Computing, Big Data, etc., are fields that require a large workforce and resources for development and research. Their applications are also diverse, as we are currently seeing. Blockchain is a new approach in data-driven economies, and its potential is huge.

What do we need for the new era?

Decoding the hype of Artificial Intelligence (AI)
AI, Machine Learning, etc. have existed for many years. Tech giants, organizations, and large corporations have all owned the most intelligent AI or, in other words, the most data.

The reason why AI has received much attention in the community recently is because we now have enough data to create better AI tools and algorithms. Notably, ChatGPT, a tool that attracted 100 million users in just 2 months and is the fastest app to reach this milestone.

Can AI/ML replace humans?
We cannot deny the advantages that AI can bring:

• To translate a text with thousands of words, it only takes a few minutes with Chatgpt

• A beautiful drawing, a high-quality music piece can be created in a short time

• A welding robot can produce better results than an experienced welder

• And many other applications

The world is increasingly developing, and in an economy operating on data, productivity will gradually improve to a new level.

However, like any other revolution, this transition cannot happen overnight. Cities didn't light up immediately when light bulbs were invented, and messages weren't sent immediately when there was an internet connection. For a new technology to be widespread and reach the majority, time is needed for development and infrastructure synchronization.

Even the founder of ChatGPT, Sam Altman, has acknowledged the limitations of ChatGPT in providing results and has stated that it will take many more years to improve the automation and reliability of this tool.
https://twitter.com/sama/status/1601731295792414720?s=20&t=1IiT8a5B-vEjSC-r3bmD_w

What do we need to prepare for the new era?
With the increasing amount of data generated, more new tools will emerge to increase labor productivity. Similarly to the development of the internet, more and more people will use tools from AI/ML because of the benefits it brings. Those who cannot use these tools will find it difficult to compete with those who can. Therefore, to avoid being eliminated from the market, they have to update their knowledge.

To prepare for the new era, instead of having a conservative attitude, we should approach knowledge and improvements with an open mindset. Be ready to embrace opportunities to excel in the competitive market of the new data-driven economy.

Data appears in every aspect of our lives, and it is the new oil in today's era. Those who have data will have money. Will you take advantage of the data or deny it?