Combine AI and blockchain for the future of data analytics

No longer only associated with cryptocurrencies, blockchain technology is now being leveraged in other industries, helping organizations gain insights from mountains of data.

Business relies on information. The faster it is received and the more accurate it is, the better. According to IBM, blockchain is ideal for delivering that information, providing instant, shared and fully transparent information stored on an immutable ledger that can only be accessed by authorized network members.

“A blockchain network can track orders, payments, accounts, production and much more,” says IBM. “And because members share a single view of the truth, you can see every detail of an end-to-end transaction, giving you greater confidence as well as new efficiencies and opportunities.”

Today, businesses and governments around the world are adopting blockchain to suit their needs in everything from welfare management to voter registration and tax calculation, with a recent Deloitte survey finding that 86% of executives believe there is great business potential in blockchain technology.

Data and blockchain

A blockchain – as described by McKinsey & Company – is an encoded digital ledger stored on multiple computers in a public or private network, consisting of data records, or “blocks”. Once these blocks are assembled into a chain, they cannot be changed or deleted by a single actor; instead, they are verified and managed using automation and shared governance protocols.

“A blockchain is a database that maintains a set of records that are protected from tampering or revisions,” comments Mo Sahib, CEO of Borderless Security and FilesDNA. “In its simplest terms, imagine making multiple copies of a document. Every time the document is viewed, moved or opened, it is compared to all the other scopes to ensure that no changes or errors have been introduced. All this happens automatically without the need for human interaction. If someone tries to change a document or access something they shouldn’t have access to, those instances can be easily identified.”

From product identifiers to medical records or land registries, blockchain and distributed ledger technologies are already working in many sectors. According to the World Economic Forum, up to 10% of the world’s GDP could be stored on blockchains by 2025.

“We’ve never lived in an age of so many transformative technologies,” says futurist and business consultant Bernard Marr. “Tech trends like ML, robotics, blockchain and the metaverse are reshaping every business in every industry.”

Data is the lifeblood of successful companies, according to Marr, but this comes with great responsibility. “Companies must keep information secure and comply with all applicable security legislation. The companies that succeed in the future must have a solid strategy in place that makes the most of their data while protecting partners and customers.”

“Blockchain has only been around for a little over 10 years, and in that time it has been widely adopted in the financial sector and beyond,” explains Sahib. “It offers better speed, accuracy and security than was possible before its inception. Forbes has predicted continued growth and development over the next 10 years. In 2021, the market was worth $4.9 billion; by 2026, this is predicted to grow to $67.4 billion.

“Growth like this hasn’t been seen since the Dotcom boom of the ’90s.”

Securing IoT data

As IoT growth accelerates, there will simply be too many devices and too much data for human intervention. According to research by IDC, the amount of data generated by IoT devices is expected to reach 73.1 ZB (zettabytes) by 2025. And while big data technology is capable of processing and analyzing large amounts of data, it does not provide security and trust.

“This is where blockchain comes in,” comments Jonas Lundqvist, CEO of Haidrun. “Like a distributed database or ledger technology, blockchain stores and manages data in so-called blocks, encrypted and linked together to form a chain. Each block also contains an immutable record of exactly when it was created, which cannot be destroyed, lost or altered without the network’s knowledge.”

With a public blockchain, anyone can download the peer-to-peer client software, view the ledger, and interact with the blockchain. This means that no single party has control over the vast amount of data the IoT devices generate, and Lundqvist claims this makes it virtually impossible for anyone to compromise or corrupt data records.

“However, public blockchains were developed for, and largely associated with, cryptocurrencies and are designed to preserve an individual user’s anonymity, treating all users equally,” explains Lundqvist. “This means that when it comes to enterprise applications – including managing IoT ecosystems – the strength of public blockchains also becomes a weakness and poses more challenges around privacy and control.”

For many companies, the idea of ​​allowing each participant to have full access to the entire content of the database does not suit. “As a result, a new generation of private blockchain is emerging where a single authority or organization ultimately retains control, and no one can enter this type of network without proper authentication,” says Lundqvist.

“Some private blockchains may look more like centralized networks, but they offer many, if not all, of the benefits. All the overall control they retain helps improve privacy and eliminate many of the illegal activities often associated with public blockchains and cryptocurrencies. »

Blockchain powered by AI and ML

The foundation of blockchain technology, and the driving force behind its continued development, is AI. The ever-improving fields of AI, combined with ML, have helped keep blockchain up-to-date with developments in hacking and cybercrime.

As Sahib explains, there are many benefits for companies looking to move their data to digital storage and transmission systems. With modern document management systems, files are easier to access and edit, searchable, automatically backed up and protected from unauthorized access and tampering.

“AI and ML help automate many time-consuming manual processes,” explains Sahib. “When you scan or upload a document, AI systems can tag, save and store your files in multiple locations on a distributed network. When you want to access your file, it will be easy to find, accessible to you remotely, and you can be sure that no unwanted changes have been made.

“AI systems are also capable of screening your documents for sensitive information. In that way ensure that this is properly flagged, secured and not shared unnecessarily, concludes Sahib. “The software can also be set up to detect and prevent unwanted access to certain files while opening others up for wider viewing. This helps ensure that only your chosen users have access and helps identify any potential threats, inside or outside your organization .”