Blockchain and AI: The Wonder Duo
Artificial Intelligence, undoubtedly, is one of the key technologies that is driving the waves of digital transformation and innovations. And, recognizing the vast potential of the robust technology, Blockchain, experts have experimented to blend the capabilities of both to improve current business processes and models, disrupting different work spheres.
Artificial Intelligence and Blockchain are two of those concepts that must be taken into account today. While blockchain can increase trust, transparency, security, and privacy in business processes via shared and decentralized distributed ledger, one can make the best use of Artificial Intelligence in improving the processes by detecting patterns, optimizing results, and making wise business decisions.
The General AI-Blockchain Talk
#Artificial intelligence
When the talk is about AI, we talk about algorithms capable of processing unimaginable amounts of data through machines, with the aim that they are capable of reasoning and making decisions like a human being.
Although its functions have not yet been fully optimized, its impact is a reality. So much so, that sectors as diverse as medicine, agriculture, scientific research, or the fight against climate change already incorporate Artificial Intelligence in their daily activity.
In addition, the latest research ensures that by 2020 a third of the world’s companies will have, to a greater or lesser extent, some progress with this technology.
Along these lines, a PWC report puts the impact of AI on the world economy at 15.7 trillion dollars until 2030, equivalent to global GDP growth of 14%.
[Prefer Reading: “Artificial General Intelligence: Is Superhuman AI Too Far to Commence?”]
#Blockchain
Blockchain can be defined as a chain of data blocks linked by cryptography and chronologically. In other words, the blockchain allows transactions and exchanges of information in a reliable, permanent, and secure way.
Therefore, although in its early stages it has been widely used in the banking sector, its impact on the entire ecosystem can be enormous. According to Gartner, Blockchain will contribute 3.1 trillion dollars in value by 2030 to the global economy.
When talking about blockchain, the emergence of cryptocurrencies comes to mind, with bitcoin at the forefront, and its great development in recent years. New Zealand, for example, already allows paying salaries in cryptocurrencies, and there are numerous examples of people who invested in them years ago and today see their investment multiplied.
[Prefer Reading: Blockchain: What it Holds for Businesses Today?”]
Is the Union of Both Technologies Possible?
The combination of AI and Blockchain is not only possible but natural. The two are powerful technology trends on their own, but they have the potential to become even more revolutionary when combined.
Their union will create new business models in different fields and will allow research in many other technologies, such as the Internet of Things (IoT) or Big Data.
Despite the fact that there are millions of devices connected to the Internet, one of the great aspirations of the network, guaranteeing the integrity of data and strengthening the security of transactions, will be possible thanks to the union of AI and Blockchain.
This step in the digital transformation will also have a great impact on the economy, the job market, or the way we communicate, as well as in constantly evolving sectors, such as healthcare.
However, there is still a long way to go. The capabilities of Machine Learning, the use of Smart Contracts, or the impact of Industry 4.0 are, for example, some of the points in which progress can continue. For now, the alliance between Artificial Intelligence and Blockchain is already underway.
#Data Management
Smart devices (AI-powered) wherever implemented, use an enormous amount of data and typically collect tremendous heaps of data where it’s often preserved on a centralized server and made to use.
When it comes to using data cross-platform, many organizations face challenges extracting and interpreting data, this is where Blockchain enables to standardize data that is accessible over harmonized digital platforms by multiple parties.
This further enhances the interoperability of stored data and optimizes data management.
Further, Microsoft, the overlord, is also making efforts to make AI decentralized and collaborative making use of blockchain which will help people to smoothly run the AI-ML models on everyday devices. Allowing advanced AI models and large datasets to be widely shared, updated, and trained could increase the rate of AI adoption bolstered by blockchain capabilities.
#Authentication via Blockchain-Based Identities
Blockchain can be applied to authenticate smart devices where blockchain-based identities can ensure that all the transaction parties receive digital identities which makes it possible to conduct transactions between:
-an individual or a company
-an individual or a machine
-between two machines
With the decentralized payment infrastructure put in place, such transactions will be processed efficiently with fast speed and low costs where digital identities on blockchain systems will play a key role in authenticating data privacy at its best.
Blockchain technology with integrated access systems and encryption processes perform better than the non-blockchain-based systems in protecting, organizing, and even monetizing data. In the context of individually interacting machines and devices, blockchain-based identities render high-end data security their record is difficult to forge.
[Prefer Reading: “Technological Trends to Look Out in 2021.”]
Afterwords
Artificial intelligence and Blockchain technology are, in that sense, complementary and synergistic. These are two extremes of the range of powerful emerging technologies that are included among the Eight Essential Technologies for Business.
AI adds intelligence and information to decision-making processes while Blockchain provides integrity, security, and decentralizes the environment in which transactions take place, which can greatly contribute to the improvement of processes.
What do you think about their combo?
What other innovation can we expect from their match?
Share your exclusive ideas in the comments section as we always welcome valuable feed from our readers.
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