When AI meets blockchain; revolutionary smart contracts and digital payments
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The collaboration between the blockchain’s decentralized and transparent nature and the intelligence and automation of artificial intelligence (AI), is expected to bring in more efficient and secure systems. “By leveraging AI’s data analysis, pattern recognition and automation capabilities, blockchain networks can be optimized for scalability, efficiency and security. This synergy could be particularly beneficial in sectors such as supply chain management, finance, healthcare and digital identity verification, among others, Shivam Thakral, CEO, BuyUcoin, a digital asset exchange, told FE Blockchain.
In cases such as supply chain management, it is believed that AI can analyze large amounts of data and optimize it. This is in addition to identifying potential fraudulent activities, while blockchain ensures the immutability and transparency of the recorded information. The global artificial intelligence market size was valued at $136.55 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030, according to insights from Grand View Research, a market research platform.
Apart from these, current trends in AI in blockchain could be the use of decentralized and user-based smart contracts in digital payment systems. The global smart contract market size was valued at USD 684.3 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 82.2% from 2023 to 2030, according to insights from Grand View Research, a market research platform. “With AI in smart contracts, one can expect automated and self-executing agreements with predefined conditions. Finally, it eliminates the need for a third party and streamlines transactions. This can lead to faster, more secure and cost-effective payment processes, which can challenge traditional payment systems,” explained Om Malviya, president, Tezos India, a blockchain adoption platform.
Governance in Banks: Driving Sustainable Growth and Stability – Speech delivered by Shri MK Jain, Deputy Governor, Reserve Bank of India
at the Conference of Bank Executives organized by RBI https://t.co/Ft4Kv68X0T — ReserveBankOfIndia (@RBI) 31 May 2023
Naysayers argue that the current legal and regulatory framework must keep up with developments surrounding AI and blockchain, to ensure the enforceability and validity of this joint venture. However, if proper regulatory initiatives are taken by the government, blockchain’s immutability and cryptographic techniques are expected to protect sensitive data while AI algorithms are expected to process it to extract insights. “It can be deployed as infrastructure while giving businesses and individuals access to trained AI models. Moreover, the combined forces can provide data wrapping, record provenance, security against tampering and improve data quality,” Subhasis Bandyopadhyay, VP-DBS Domain, IG- head -BFSI, Happiest Minds Technologies
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