How blockchain-oriented AI can bring about a new definition of data management
Recent increases in data breaches and digital surveillance have underscored the need for better privacy and security, with the rise of safeguards over users’ personally identifiable information (PII). The blockchain-based artificial intelligence (AI) model’s decentralized ledger technology (DLT) protocol is believed to protect data through decentralized identity and other privacy protection mechanisms. In a study conducted by Emergen Research, a research and consulting firm, the global blockchain-based AI market stood at $226.9 billion in 2020 and is expected to reach $1,414.1 billion by 2028, at a compound annual growth rate (CAGR) of of 25.6%. “AI and blockchain can solve problems for various industries. While blockchain can handle trust, privacy and accountability, AI can handle scalability, safety and security in a process. Through blockchain-oriented AI protocols, companies can get support in decision-making to build better products and services, and process internal business matters faster. AI models in smart contracts have the potential to improve inventory management, reordering, recalls of faulty products and even resolve opportunities for financial disputes arising due to disjointed data sets,” Shantanu Sharma, Growth and Marketing, EasyFi Network, a decentralized finance (DeFi) platform, said.
According to various reports, blockchain-based AI is believed to help manage data in sectors such as manufacturing, retail, automotive agriculture, financial industry, among others. Insights from Fortune Business Insights, a market research firm, mentioned that the adoption of blockchain-based AI platforms and services among small and medium enterprises (SMEs) to develop blockchain applications such as payment systems, smart contracts, among others, is likely to fuel growth for this market, with countries such as China, Japan, the US and the UK expected to invest heavily in this sector. “Integration between AI and blockchain provides data security through encryption. Through cryptography, enterprise databases can exchange information in real-time without compromising user security. Blockchain-based AI can ensure that recorded data is not breached,” said Pardeep Narwal, founder, New Edge Soft Sol Private Limited, a software company.
Moreover, experts believe that blockchain-based AI can help create a transparent data economy, to make data immutable and free from third-party access. It is expected that blockchain-based AI models can help users read, correlate and understand large amounts of information at a faster speed. Research conducted by MarketsandMarkets, a market research company, highlighted that blockchain-based AI models can help monetize data to make it available to smaller companies. “By correlating AI and blockchain, all types of platforms can find ease in creating decentralized AI applications. It has the potential to allow devices to overcome difficulties through real-world challenges, reasoning and trial and error. The presence of autonomous agents will play an important role in the governance of data,” said Amanjot Malhotra, country head of India, Bitay, a cryptocurrency exchange.
Also read: Avalanche proposes way to cut lasting losses in decentralized finance
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