Blockchain and AI: A Perfect Match Made in Technology World
- By Christopher Roberts
Blockchain and AI are some of the most popular buzzwords these days in almost every industry. You can't make a head-to-head comparison of them, because they differ in many ways. Their developing parties are different, not to mention their applications.
However, merging Blockchain & Artificial Intelligence Technology makes perfect sense. Whoever thought of bringing them together should seriously get a medal. When working together, these two technologies can significantly enhance one another's potential.
They can take data collection and analysis to a whole new level. Here's how.
Blockchain & Artificial Intelligence Technology: A Match Made in Heaven
A blockchain is a digital ledger stored on a distributed network and used for storing encrypted data. It is decentralized and immutable, so stored data cannot be copied or modified in any way.
On the other hand, artificial intelligence is a field of study in computer science that deals with the creation of machine intelligence. It deals with the practice of creating machines that operate intelligently, as humans do with natural intelligence.
As such, AI enables computers to analyze collected data and gain insights from it. It uses machine learning to enable them to learn from data and make smart decisions.
When AI and machine learning merge with blockchain, they can boost the digital ledger's architecture with intelligent decision making.
At the same time, blockchain technology can organize all data collected by AI and make it more coherent. It can record machine learning information and variables to help determine why AI has made particular decisions.
The Blockchain & Artificial Intelligence Technology merge is still in its infancy, but it's bound to make considerable changes in the tech world. According to the PwC's Global Artificial Intelligence Study, AI will contribute up to $15.7 trillion to the global economy by 2030.
By the same year, blockchain technology will increase business value by $3.1 trillion, according to Gartner.
Top Applications of Blockchain and Artificial Intelligence
Many Business Data Processing Services have already embraced blockchain and AI. More and more businesses are recognizing the massive potential of marrying these two technologies, as they can greatly benefit from one another. Here are their most important applications worth considering.
Creating AI Blockchain Networks for Diverse Data Sets
As mentioned above, a blockchain is a distributed, decentralized, immutable ledger that almost anyone can access. It's a public network that no central body controls. As such, it's fully transparent and authentic.
It's mainly used to power cryptocurrencies, but any industry can use it for various purposes with the goal of decentralization.
Therefore, AI can help create smart AI blockchain networks for collecting and storing diverse data sets. Businesses can integrate various APIs into the blockchain that will enable various AI agents to communicate with one another and make smarter decisions.
They can also develop multiple algorithms for different sets of data and additionally make blockchains smarter.
Reducing Computing Power
Blockchains require a lot of computing power, as they host vast amounts of encrypted data. It's one of the biggest problems for Business Data Processing Services. Fortunately, AI can help reduce this processing power by handling various tasks on the blockchain more intelligently.
For instance, the so-called "brute force" Bitcoin mining requires an incredible amount of processing power. This is simply because the blockchain needs to enumerate a large number of candidates before it can verify a transaction.
It checks them to determine whether or not they meet the necessary criteria for a particular solution. Once it ensures the candidates meet a particular statement, it verifies the transaction.
It's a very complex and time-consuming process, which is precisely why it takes a lot of processing power. AI can reduce that power by making faster, smarter decisions. It can apply algorithms on the blockchain-based on machine learning.
Moreover, it can continually hone its skills in real-time, consistently making blockchain more intelligent.
Many companies generate revenue by monetizing their collected data. The best examples are Google and Facebook.
However, we have all seen how monetizing collected user data can easily turn into serious data privacy issues. Fortunately, blockchain can prevent this by enabling users to choose whether or not they will allow data monetization.
Blockchain technology enables them to encrypt their data so that no one can misuse it. If one chooses to monetize their data, they can make sure their personal information remains private.
The same goes for AI-based programs that ask for user data. To get that data and develop, they will need to turn to decentralized data marketplaces. There they will need to purchase data from its creators.
It opens up a lot of opportunities for smaller businesses that can't afford to generate their user data. With decentralized data marketplaces powered by AI, they will be able to procure and monetize data. More importantly, data creators will rest assured that their data is not compromised.
SingularityNET is one example of blending Blockchain & Artificial Intelligence Technology to develop a decentralized AI marketplace. It enables anyone to purchase and sell AI algorithms to monetize data.
Enhancing Data Security
Blockchains use cryptography to encrypt all the collected data and ensure its security. Since they are decentralized and immutable, they can fully protect personal and sensitive information of each user.
However, integrating AI into the blockchain can additionally enhance data security. AI can be programmed and continually trained to protect against potential cyber-attacks. It can detect and identify potential frauds and thefts in real-time, instantly raising red flags and effectively stopping cybercriminals in their tracks.
At the same time, the blockchain-powered by AI can handle any possible vulnerability in its decentralized database.
It's especially important for financial and medical data. Those data sets are too sensitive to fall into the wrong hands. The convergence of AI and blockchain can successfully protect them.
The synergy of Blockchain & Artificial Intelligence Technology is still in its experimental stage. There's still a lot to be explored, as we have only seen the tip of the iceberg. Nevertheless, the merger of two technologies seems very promising.
We are yet to witness them in full power, but they will certainly bring revolutionary innovations to the world.