The recent technology market has seen a lot of hype on many technologies. Blockchain and AI are two among them, which has gained a lot of attention from vendors, customers, enterprises for their capabilities and offerings. Interestingly, though having many differences between the functionalities between the two, Blockchain and AI jointly claim many possibilities. As AI is providing tangible and real value in everyday life, Blockchain, on the other hand, leverages value across a range of applications in different industries. Does that mean the combined power of Blockchain and AI will double the value in the technology field? Or Blockchain and AI a perfect match?

While AI effectively mines through the huge dataset to discover patterns depending on data behavior and create new scenarios, at the same time, Blockchain helps in effectively remove bugs in the pattern and fraudulent data sets. The decentralized infrastructure of Blockchain can verify the authenticity of the data patterns. Besides, this acquired data through Blockchain is useful for marketing automation with the help of AI.

Hence, the capabilities of both Blockchain and AI enact upon and exploit data at a new level. Furthermore, the integration of AI and machine learning into Blockchain and vice versa helps to enhance Blockchain’s architecture and boost AI’s potential. Similarly, the Blockchain can make AI more understandable and coherent to determine the reasons for decision making in machine learning.

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How AI Can Add Benefit To Blockchain

AI has an advanced decision-making capability, whereas Blockchain infrastructure offers a reliable and secured layer on that decision making. Hence, the combination of the two perhaps creates the world’s most reliable technology-enabled decision-making system, which at the same time is tamper-proof as well comes with solid decisions and insights.

It holds several benefits like:
– Globalized verification systems

– Improved business data models
– Smarter finance

– Innovative audits and compliance systems
– Intelligent predictive analysis

– Transparent governance
– Intelligent retail
– Digital Intellectual Property Rights

What are the Technical Enhancements that AI offer?

AI has a generic capability to improve Blockchain using machine learning systems. These algorithms can look for the patterns and anomalies in the data types being stored and the actions being performed. The AI systems can look for normal behavior, and in case of an anomaly, it raises the alert. This way, the AI systems keep Blockchain more reliable, efficient, and secure.

Apart from the above-mentioned generic usability, there are many more utilities of AI for enhancement of Blockchain as mentioned below:

Security: When AI is implemented with Blockchain the Blockchain infrastructure becomes safer for future application deployments. For example, AI algorithms that are increasingly being used for making decisions about whether a financial transaction is fraudulent and how it would be treated is a good example of it.

Efficiency: AI helps optimize calculations that reduce miner load in Blockchain, which results in less network latency and promotes faster transactions. Hence, we can say AI enables reducing the carbon footprint of blockchain technology and the cost. Moreover, as the data on blockchains grows every minute, there is a need to prune data no longer required. AI’s data pruning algorithms do this job. Additionally, AI can introduce new decentralized learning systems like federated learning or new data-sharing techniques. These techniques make the system much more efficient.

Trust: One of the USP of Blockchain is its iron cast records. Blockchain and AI conjunction mean users have clear records that follow the system’s thinking process. This, in turn, increases the machine-to-machine interaction and allows them to share data and coordinate decisions.

Better Management: AI helps in managing blockchain systems higher. The machine learning-powered mining formula has the ability to eliminate the human intervention for cracking code in Blockchain.

Storage: Blockchains are ideal for storing susceptible personal data. Additionally, when this data is smartly processed with AI, it can add value and convenience. For example, smart healthcare systems that make accurate diagnoses based on medical records and scans are good examples of that.

How blockchain can benefit AI

Blockchain and AI combination have a major benefit as no one owns it. Besides, there’s no government control over the AI solution or the shared brain. This is potentially an unbiased solution as the sheer amount of information comes from different areas and angles.

Blockchain also has a significant impact on explainable AI. In deep learning, you can’t get a clear idea about what inputs can result in which output and its overall impact. Hence, if something goes wrong in a deep learning neural network, identifying the root cause is problematic. It is like a black box without any explainability and real transparency.

However, with the intervention of Blockchain, you can record individual actions in a non-reputable manner. This helps to find out where things went wrong and fix them accordingly. Furthermore, along with the record of events, you can prevent the modification of the decisions and actions.

Applications of AI and Blockchain

Smart Computing Power

Working with Blockchain with all its encryption functions in place needs a massive amount of processing power on a laptop. Here the hashing algorithms used to mine Bitcoin blocks use a systematic enumeration to apply AI machine learning algorithms that come as an intelligent and economical approach.

Creating Diverse Data Sets

Blockchain technology has a significant difference from computing-based projects, where they create suburbanized and transparent networks that anyone can access around the world in a public blockchain network. Now using APIs on the blockchain allows the communication of AI. For this purpose, various algorithms are designed on various knowledge sets.

Data Monetization

Combining the two technologies, Blockchain and AI, we can validate the information, which is a turbulent innovation in the recent age. Interestingly, monetizing collected data is a huge revenue source for large companies like Facebook and Google. Blockchain permits the U.S.A. to cryptographically defend user knowledge and utilize it in how we tend to see work. This is important to understand to combat biased algorithms and create diverse data sets in the future.

The same goes for AI programs that require user knowledge. For AI algorithms to learn and develop, AI networks will be required to buy data directly from their creators through data marketplaces. This will create the whole method a way more truthful method than it presently is, without tech giants exploiting its users. Such a knowledge marketplace also will open AI for smaller corporations. Developing and feeding AI is implausibly pricey for corporations that don’t generate their knowledge

Trusting AI Decision Making

Using blockchain technology, we create immutable records of all the data, processes, and variables used by AIs for their decision-making processes. This makes auditing the entire process easier. With the appropriate blockchain programming, we can observe all steps from data entry to conclusions, ensuring that the data has not been tampered with. This also creates trust within the conclusions drawn by AI programs. Not to mention, this is a necessary step, as unless individuals and companies don’t understand how they function and on what information they base their decisions, they will not start using AI applications.

Final Thought

The combination of blockchain and AI has received significant attention. However, projects devoted to this ground-breaking combination is still less. From the discussion above, we can conclude that together these two technologies can use data in ways never before thought possible. When data is the key to develop a machine learning algorithm, blockchain secures this data. No doubt, AI is incredibly revolutionary but only when it is designed with utmost precautions. Blockchain can assist in this, and this potential is rapidly developing to disrupt AI.