Benefits of Blockchain Technology with Artificial Intelligence Integration
Since time immemorial, humans have continued to break new grounds with the creation of new technological innovations, and over time these technologies have evolved into something better, in most cases than its predecessors. There is no doubt about the continuity in the search for new ways to make our lives much better with the aid of these innovative technologies. One technological innovation that has left its mark and is performing better than anyone envisaged, is the internet, which has, in turn, served as an underlying technology for the creation of technological innovations such as the blockchain technology and artificial intelligence.
One thing we are certain about is that the creation of both the blockchain technology and artificial intelligence (AI) is bound to create disruptions in different systems, and thus bring about positive change, which will, in turn, give us a better future with technologies. These two technologies have complex structures; hence, developers are yet to ascertain their full capabilities, as every day new use cases for both technologies are discovered. However, it is clear that the combination of both technologies will create diverse opportunities that will not only enhance efficiency, effectiveness, and productivity but also pave the way for the creation of more advanced innovative technologies.
The blockchain technology is the underlying technology for cryptocurrency applications. It is a distributed ledger which was recently discovered to possess excellent qualities for the development of distributed and decentralized applications suitable for use in any industry and business sector. The use of blockchain is causing disruptions in the financial industry, as it changes the way transactions are carried out, in that it eliminates the need for the 3rd party for verification and validation of transaction information. Furthermore, the blockchain technology comes with features like enhanced security with its high-level cryptography, decentralization, quick cross-border transaction, scalability, transparency, and anonymity, among other features.
Artificial intelligence is something researchers have always wanted to achieve since the 1950s, and recently, with the improvement in the use of algorithms, deep learning and machine learning have become more practical and cost-effective. These AI methods (deep learning and machine learning) have contributed their quota in boosting AI’s profile, such that it is now possible to develop applications that are applicable in the real world, with deep learning and machine learning structures.
Benefits of Combination of the Blockchain Technology with AI
Improvement in Transparency of AI-based Applications
The data from AI algorithms build neural networks, and applications created with AI use these neural networks for the generation of possible results, however, these neural networks or decision trees are usually not understandable by humans, thus not being able to explain or know how an AI-based application arrives at a decision reduces the trustworthiness of the decision-making process.
Blockchain technology, which has transparency as a feature, can be used to enhance the transparency of AI-powered applications, because blockchain, which is a distributed ledger technology, can be used to record every critical decision made by the AI application, thus, it makes it easier to understand the data outcome generating process of the AI-based applications, hence, transparency is enhanced and trust is implemented.
Furthermore, the near future will witness the mainstream use of AI-based tools and applications for legal, tax and financial transactions, and there will be the need of an audit trail to ensure that the right decisions are made by the tools/applications.
The blockchain technology comes with an immutability feature, and thus makes it possible for blockchain networks to provide data sources that are trustworthy for AI-powered applications. The health industry, for instance, usually has tons of information on their patients/clients, and when transactions take place, there is the high probability of hackers getting their hands on data required to hack into the network. With the blockchain technology, it is easy to implement an identity management system to check any security lapses and to enhance the security further, AI can be added to the applications for authentication, confirmation, and validation of access requests.
The blockchain technology uses high-level cryptography for encryption processes, which makes it very difficult for hackers to get access to users’ data for manipulation and alteration. While the blockchain technology is a secure one, blockchain-based applications are still susceptible to attacks from cybercriminals, due to the fact that these applications have financial data as part of their functionality; examples of such attacks include the attacks on Bitfinex, Mt. Gox, and the DAO in times past. A combination of the blockchain technology with artificial intelligence can stop breaches, via AI’s deep learning and machine learning abilities, possible threats can be recognized, and systems put in place to better protect the platforms/applications.
While using the blockchain technology for various purposes is a welcome development, it is good to note that the technology is one that requires a lot of power, which is responsible for the high electricity bills when operating blockchain hardware used for the validation and sharing of transactions taking place on the blockchain. A lot of power and resources is wasted when trying to verify transactions by several miners at the same time. With the help of AI, it is possible to bring some optimization to the process and thus facilitate the decrease in mining costs.
Another problem facing the blockchain technology is how it deals with data size. Every activity that takes place on the blockchain network gets recorded from the start of the process, and it keeps building on that chain, which translates to more data and the need for more storage. This problem can, however, be solved with the introduction of AI because it can assist the blockchain in making better decisions with maintenance and data storage because AI can offer more efficient data sharding solutions.
Another aspect of the blockchain technology where efficiency can be increased is in the use of smart contracts, and a lot of blockchain-based applications need these smart contracts for the execution of transactions and recording of outcomes, AI can be applied to smart contracts for to its creation and also for enhanced verification.
The fourth industrial revolution is fast gathering speed, and a number of key technological advancements are set to determine the rhythm and pace of the next generation of human life on our dear planet. The blockchain technology is a crucial part of what will bring accountability, transparency, and safety for these emerging technologies, while AI is safe to say will be given control of so many aspects of the modern living as it becomes more sophisticated. There is no doubt that a combination of both technologies is a move in the right direction if we really want to achieve the best from both.