AI and Blockchain- The Future of Business

Two cutting-edge technologies, blockchain and AI, are rapidly progressing in the present day. The advent of blockchain technology has altered our conception of the internet’s potential and made possible exponential increases in the speed and transparency of online financial transactions. 

Artificial intelligence (AI) has already ushered in new possibilities for several industries, facilitating the optimization of everyday operations and redirecting human effort toward more strategic and complicated endeavors.

This article will inform readers of the advantages of combining blockchain with AI. Additionally, we will demonstrate the concept’s application to a case study.

We will look at the following:

  • What is AI?
  • AI applications
  • What is Blockchain?
  • Blockchain applications
  • AI and blockchain applications
  • AI and blockchain use Cases

What is AI?

Artificial Intelligence works by using computers, data, and even physical machines to solve problems and make decisions in a way that’s strikingly similar to the human brain. Machine learning and deep learning are AI subfields that employ algorithms trained on data to produce predictions or classifications and improve with experience.

The advantages of artificial intelligence include automating mundane operations, enhancing decision-making, and enhancing the quality of service provided to customers.

AI Applications

Artificial intelligence is one of the finest technical advancements, with applications from business organizations to financial institutions. Recommendation engines, like those used by Amazon and Netflix, also use machine learning. 

The accuracy of the recommendation engine improves over time as consumers continue to see and engage with these services. Autonomous vehicles, complex video games, website bots, and voice-processed language translation all use AI in different capacities.

AI (Artificial Intelligence)
AI (Artificial Intelligence)

Automating currently performed tasks is also a central focus area within AI. This is the most significant risk posed by AI, which is why this field deserves attention. 

According to a World Economic Forum research titled “The Future of Jobs,” as many as 85 million jobs spanning 15 sectors and 26 economies are at risk. Data entry, accounting, and administrative support positions will decrease significantly.

However, the demand for new technologies like AI and blockchain will compensate for many losses.

What is Blockchain?

Blockchain is a distributed ledger that allows numerous parties to instantly and transparently communicate and exchange encrypted data as they begin and finish transactions in real-time.

Orders, deposits, accounting, and manufacturing are just some things a blockchain network may monitor. Being a distributed, unchangeable ledger that can be used to track the history of digital assets and to record transactions between parties, practically everything of value can be tracked and traded on a blockchain, which reduces transaction fees and security risks.

Permitted members benefit from increased trust and efficiency in their commercial dealings with other parties because they have a common understanding of the transactions that occur in the network.

Any possibility of fraudulent data added to the blockchain would be eliminated at synchronization as long as more than 51% of the blockchain files are identical.

Blockchain Applications

Blockchain is often associated with cryptocurrencies, although this is far from being its sole potential application. Smart Contracts are another application of blockchain tech. 

They are embedded software in the blockchain that can automatically fill out and deliver copies of documents like insurance applications and real estate contracts, eliminating the need for human intervention while saving time, money, and paper. 

Image showing different concepts of smart contracts
Smart Contract Concept

Smart contracts eliminate the necessity for third parties to form binding legal agreements. For blockchain to thrive, it needs only to be implemented wherever validating data transfers are necessary.

Blockchain has been met with resistance due partly to the theoretically “anonymous” character of the transactions it facilitates since user identities are reduced to unreadable alphanumeric keys. 

This sense of protection from identification is appealing to criminals. Blockchain is not anonymous, however, because it allows for tracking users through the use of unique identifiers generated by the technology. This makes all transactions more transparent and permanent.

AI and Blockchain Applications

AI can be used with blockchain to solve a wide range of problems. Here are four integrations of artificial intelligence (AI) with blockchain that can emerge due to AI’s widespread use in other financial sector areas.

Security

Information stored in a blockchain is secure because of its built-in encryption. If you need a safe place to keep records of your medical history or recommendation tailored specifically to you, a blockchain is a way to go. Endless and massive amounts of data are essential for AI. Experts are currently working on algorithms enabling AI to safely and effectively process encrypted data.

Yet there is another perspective on the need to bolster security. While the blockchain is invulnerable, any extra layers or apps built on top of it might be compromised (consider breaches of DAO, Bitfinex, etc.). Better adoption of blockchain applications and the ability to foresee potential system breaches are two areas where machine learning may be applied in the financial sector.

Demystifying AI

No matter how advanced artificial intelligence becomes, if people don’t have faith in it, they won’t use it. One of the main obstacles to AI’s widespread use is the inability to account for the computer’s actions. People are more likely to have faith in AI when decisions can be recorded.

The use of the blockchain in AI can open up the inner workings of AI systems. Every AI decision may be recorded in a decentralized ledger and made accessible for research. In addition, using a blockchain ensures that data is unchangeable from the moment it is recorded until it is verified.

Controlling the Data Market

This is directly related to fortified safety measures. New applications appear due to the distributed ledger’s ability to store and handle massive volumes of encrypted data. The blockchain provides a safe location for individuals to record and trade access to their personal information. This leads to markets for data, models, and artificial intelligence.

There is a wealth of data to be used in AI processes, but it is locked away from all save the likes of Google, Facebook, and Amazon. Because of the distributed nature of blockchain data and the availability of AI marketplaces like SingularityNET, even tiny businesses and startups can compete with the big giants.

Enhancing our data-management processes is another advantage of integrating AI with the blockchain. To decipher encrypted data, computers would try several permutations of characters before settling on the proper one. 

As with any human hacker, AI gains experience and becomes more proficient with each new piece of code it cracks. But AI won’t have to wait a lifetime to master its subject matter as a human would. Almost instantaneous execution is possible with adequate training data.

Smart Contract Enhancements

The blockchain has specific vulnerabilities that malicious actors can use. Not so long ago, this was demonstrated. Said, smart contracts aren’t very clever… yet. Money can be released and transferred automatically after the predetermined requirements have been satisfied. T

his requires the blockchain network to gain consensus. Since the source code for a smart contract is out for inspection, anybody may take their time and carefully examine it for vulnerabilities. Artificial intelligence aids in the validation of smart contracts and the prediction of exploitable flaws.

AI and Blockchain Use Cases

AI and Blockchain
AI and Blockchain

The synergy between AI and blockchain has been demonstrated to be strong, yielding positive results. The logistics of distributing food, exchanging medical records, distributing media rights, and safeguarding finances are all improved by the combination of artificial intelligence and blockchain.

Some examples of companies that have combined blockchain technology with AI are provided below:

CoinGenius

CoinGenius is a cryptocurrency trading platform driven by artificial intelligence that gives crypto traders AI-based grading algorithms, high-quality data feeds, and sophisticated projections to meet their news and trading features demands.

It is anticipated that by the first half of 2019, CoinGenius will have completed the development of its entire suite of tools, which will contain news, activity, and transaction data from reputable crypto sites like Hackernoon, Medium, and Coindesk.

Core Scientific

Core Scientific improves company infrastructure, servers, and software to manage anything from supply chain monitoring to real-time data reporting by fusing specialized blockchain and artificial intelligence technologies with current business networks.

Two substations and a hydroelectric power dam are located on the more than 273-acre Core Scientific complex. Since blockchain and AI demand so much computing power, Core Scientific ensures the company’s data centers and infrastructures run as smoothly as possible.

BurstIQ

To manage a patient’s data comprehensively, BurstIQ created a “Health Wallet” that makes use of artificial intelligence (AI), blockchain technology, and large amounts of data. The Burst IQ wallet provides healthcare providers access to patients’ health data and wellness initiatives. Then doctors and researchers may buy, sell, and exchange patient data to further medical knowledge or do studies on a specific health condition.

The blockchain, on the other hand, lets people share aggregate health data while protecting the privacy of individual patients. The technology developed by BurstIQ is being implemented to combat the drug epidemic. BurstIQ uses the patient’s drug usage history to recommend alternative therapies, specialists, or services intended to reduce opioid dependency.

Wrapping up on AI and Blockchain

When artificial intelligence (AI) is combined with private blockchains, new opportunities arise for business-to-business (B2B) use cases, and applications benefit from enhanced efficiency, confidentiality, reliability, and openness.

Pre-packaged solutions and Blockchain-as-a-Service options will save time and money for SMEs, while custom blockchain solutions will be available for large organizations.

Although the integration of AI with blockchain is still in its infancy, it has the potential to become widespread. When AI and blockchain are combined, their respective weaknesses are mitigated, leading to enhanced capabilities for both parties and general commercial use.

The next stage for these two technologies to help organizations expand is to develop international standards for gauging the efficacy of combined Blockchain and AI.

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