Blockchain forecasting is something that is picking up momentum these days. We can use Blockchain for both demand forecasting as well as general views of the public, where polling used to be the case for decades now. One of the critical factors of cryptocurrencies is its unpredictability. It’s the reason for its popularity among the retail investors, but at the same institutional investors stay away due to the very reason. Hence using Blockchain for forecasting is a bit of irony, but it has started proving its mettle in the prediction as well.
Creating a demand forecasting is being proved to be a really tough deal because of the quality of the data. At the enterprise level, demand forecasting is done mostly based on the old data. For example, due to the COVID19 situation worldwide, demand has been slumped to almost zero other than essential goods.
If we consider this data for next year’s forecast, we will be doomed with the figures that come as a result. Hence, we need quality data when it comes to demand forecasting. Many enterprises have different sets of data internally and externally as per their requirement for forecasting. Enterprises using ERP and CRM systems have the code inbuilt, and it would be very tough to change the logic as per the recent evolutions in the market.
When we take FMCG companies, each company have their own set of data, but they won’t share the data with other FMCG companies due to various constraints. If they come together on a blockchain platform and share only essential data leaving inventory, pricing, and other confidential details, it would be beneficial for the whole industry. The data should be immutable, permissioned so that only people with access can view it.
If we combine the blockchain technology with Artificial Intelligence and Machine Learning, we can extract more value from the data set. Using AI, we can know why the demand was deficient this time when we check the forecasting for next year. Alternately based on geographical conditions, weather, any external factors like elections period, if we input these fields demand that particular, region, or for a store can be easily predicted with these combined new technologies.
Often during election times or with some programs as well, people or audiences of the program are asked questions to know the opinion of the people. Usually, a huge amount of data is received, which is a strength in numbers. One’s opinion on a given topic depends on the personal experience, prejudice, bias with the information available to them, which may be correct or wrong.
But what if the individuals have more data? With better quality and quantity of data, people might come up with more accurate predictions. Blockchains are, of course, made for collecting a large amount of data on a decentralized platform. Hence a blockchain prediction project can take multiple data points and come up with an accurate forecast on the input generally like prices would go up or down, consumption is likely to increase or decrease. Usually, precise predictions on what is going to happen next can be known.
Hence Blockchain is foraying into forecasting and gives more reliable forecasted figures when combined with AI/ML than any other forecasting model we have today.