How Blockchain and AI can complement each other
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Businesses are now waking up to the idea of how blockchain and AI complement each other, which will amplify the enormous benefits that both technologies have to offer. Blockchain makes sure to provide large amounts of tamper-proof, highly accurate decentralized data, while AI knows how to use and implement it for a business model, as well as develop better mechanisms to obtain it.
Advantages of merging the two technologies
Blockchain technology, a decentralized database management system that offers higher security and transparency for large amounts of data and AI (artificial intelligence), which has sailed the 21st century closer to the ever unexpected, is now being considered significantly to be combined together that will improve what each one is capable of.
Blockchain will produce highly secure data records with every transaction accurately present. Large amounts of data can be accessed that AI can use to gain actionable insights, whether they are largely obvious or small but important. AI processes and manages data which in turn uses blockchain data more efficiently.
Since AI is highly centralized, incorporating blockchain helps increase transparency, thereby making computing power more distributed. The provenance and traceability of blockchain systems helps AI make more accurate and intact decisions, better identify flaws and increase reliability.
AI tackles the notorious problem of scalability in blockchain. The problem is only expected to magnify as every business requires the generation of tons of data and more and more users access the technology, more and more businesses emerge. AI can speed up transactions by faster processing and eliminating the need for human verification.
AI is also capable of digging into deeper spaces to look for data. There is always a certain amount of data that is not yet available on the market. AI can thus improve the collection and record of data of the blockchain available on peer-to-peer connection, thus making the data available to everyone on the network.
Some use cases where Blockchain and AI can be combined
Finance: Blockchain obviously makes the financial and banking systems safer and more efficient. When combined with AI, it can detect fraudulent activities faster, provide unused inputs from client history and speed up the traceability of the entire system. Blockchain smart contracts can give an advantage to the performance of AI while AI can develop ways to generate better smart contracts for the banking system.
Health Service: From the records maintained on the blockchain, AI can gain unerring insights that can provide early detection and better diagnosis, and help devise personalized medications and treatment plans. From the proven and traceable history that blockchain provides, AI can also provide calculated probability and forewarning of a disease, and by observing trends from the chain, it will help advance medical development and research.
Life Sciences: AI has already unlocked new discoveries in this field – from protein chain structures to neural networks. Blockchain will greatly improve the efficiency and accuracy of the system as protein structures, DNA fingerprinting, genome sequencing and research areas – all require handling huge amounts of data.
Supply chain: By digitizing the process, making the data transparent and secure, blockchain will greatly benefit the logistics industry. AI can help induce automation of the process for seamless execution and expansion of complexity such as identifying issues such as counterfeit goods, correcting destination errors, and anticipating potential issues.
Applications of the combined AI and blockchain technology are surprisingly useful in cases where critical decision-making, learning skills, pattern recognition, calculation of upcoming trend probabilities etc. are required along with the necessity of reliable, traceable, hack-proof and tamper-proof record-keeping systems in place.
Situations where history of transactions, traceability and accountability play an important role in decision making, to leverage AI to provide untapped insights into the data and convert it into productive results that were not even perceived before, this merging of the two technologies becomes essential.
DeepBrain Chain, SingularityNET, Numerai, Peculium and other projects that have successfully combined and entered into pioneering this great idea of AI and Blockchain marriage.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional money exchange systems. She is also fascinated by the blockchain technology and its function.
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