Blockchain and Artificial Intelligence, coupled together, have evolved as a breakthrough technology that is catalyzing the pace of innovation across every industry. Beyond a doubt, Blockchain with AI is striding together and marking a footprint in the technological paradigm.
You will probably witness the consequences of this powerful pair in almost every sector like in healthcare, education, finance, fintech, law enforcement, and manufacturing. Financial organizations are implementing both AI and blockchain-based solutions to run the business process and maximize cost-saving and returns.
Deloitte’s global blockchain survey in 2019 reports that 57 percent of the organizations witness cost savings as one of the primary benefits of participating in the consortia of the blockchain network.
This article wants to give a flavor of the potentialities realized at the intersection of AI and Blockchain and discuss standard definitions, challenges, and benefits of this alliance, as well as about some exciting players in this space.
Secured Payment Network
The age-old traditional banking institutions face many challenges like compromised payment networks, delay in the processing of the transaction, high cost of the transaction, which makes the entire transaction time-taking and troublesome.
Blockchain technology offers a borderless payment network, and its decentralized solution facilitates a frictionless payment at a faster pace. However, some security concerns restrict many bankers to integrate this technology in the banking domain. Scamsters and fraudsters find it challenging to hack the network as it requires a set of public and private keys to run the transaction.
But, by leveraging the power of AI into your blockchain account, the owner can easily trace the theft, if there is any human involvement. With the integration of AI’s behavioral analysis and biometrics, you can eliminate security susceptibility in the payment networks.
Controlled Automation for Financial Activities
To have controlled automation of financial activities, blockchain and AI coupled together to facilitate the automatic process. By merging blockchain-powered smart contracts with Artificial Intelligence, you can verify the smart contracts and easily predict the possible vulnerability and theft if any. It ensures a completely secure, transparent, and efficient financial transaction, which in turn replaces the calculated restrictions with the automated process.
What are the major benefits of combining these two ground-breaking technologies?
Well, a combination of these two technologies and their application in the real and business world proves that they are made for each other.
Have a look at some of the advantages of using blockchain in conjunction with AI applications.
Blockchain makes AI secure
By implementing blockchain technology, you can decode the decisions made by AI, which is sometimes difficult to understand. Blockchain can effectively evaluate a large number of variables independent of others, which will help you in determining the relevant task it is trying to complete.
Blockchain tracks, explains, and understands the AI decisions that help drawing possible insights and bring transparency to the public by recording the decision making process.
Unlike humans, the computer system does not have a brain of their own; instead, they are instructed to perform tasks. With the inception of AI, the machine-learning powered mining algorithm has made our life much more comfortable.
AI and Blockchain work well together
The data held in the blocks of the blockchain is highly secure because of the cryptography technique. We can store highly sensitive personal data in these blocks as the blockchain databases hold this information in an encrypted way. Now, you might be wondering how AI proves to be a good pairing with the Blockchain technology.
To keep the data safe and secure, AI has come up with plenty of advantages. The primary edge is that with AI, we are capable of working with the data in the encrypted state, which in turn can reduce the incidents of security risk.
For example, E-commerce companies like Amazon and Netflix use a combination of these two technologies as AI can work on the encrypted data. The recommendation engines used by Amazon and Netflix are one of the examples of AI. You can hire AI developers in India & make use of this amazing technology.
AI enhances the security of blockchain
Blockchain sometimes is resistant to hacking, several layers and applications beneath it are not very secure. By integration of AI with blockchain, you can ensure a safe application considering the fixed system structure.
AI helps in handling blockchain more efficiently
Computers find it challenging to perform a task without an explicit programming approach. It needs a lot of processing power to operate on the blockchain data as blockchain comes with encrypted nature. Let’s take the example of the cryptocurrency, bitcoin.
For mining the blocks on the Bitcoin blockchain, hashing algorithms are used which employ a “brute force” approach. This algorithm virtually tries every character combination until it finds the one that can be used for verifying a transaction.
With the help of AI, it is possible to handle this process more easily and intelligently. AI and ML-powered mining algorithms are fed with more training data that make it faster than humans.
AI and Blockchain in Healthcare Industry
While electronic healthcare records are a goldmine of training data for data-hungry, AI applications in healthcare, it is imperative to provide a guarantee on the integrity and quality of the data that the predictive algorithms will work on.
Blockchain, in conjunction with AI, can aid in personalized precision healthcare by guaranteeing integrity, registering consent, providing origin on the decisions impacting care.
Blockchain and AI in Nutshell
The two leading-edge technologies paired together have brought many advancements across many sectors. With the advent of the tech-savvy world, Artificial Intelligence has made the lives of humans easier by allowing machines to work on their behalf.
The blockchain can store highly sensitive data which, when smartly paired up with AI can bring much difference in our lives. It’s clear that both blockchain and AI are individually established technologies and have the potential to become more revolutionary when coupled together. In the coming future, we expect these two spearheading technologies to exceed our expectations and enhance technological capabilities.
While AI and blockchain remain the active fields of research, there is more to foresee. If you are also looking to integrate blockchain and AI in any of your applications, then hire developers from the best blockchain development company in India.
The Convergence of Blockchain and Artificial Intelligence was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.