Blockchain and AI: The Sky’s the Limit

Blockchain and AI (artificial intelligence) have evolved from fringe concepts to mainstream buzzwords in the tech world. In this article, we’ll discuss how they can work in tandem and what kinds of businesses are improving themselves by combining these technologies. So, without further ado, let’s find out if there is any substance behind the hype.

Blockchain Basics

In simple terms, a blockchain is a ledger or a database that stores data in blocks. It’s a decentralized system that can theoretically store data for an unlimited number of users, giving it an advantage over traditional databases that are almost always limited.

One of the most impressive benefits of blockchain is that it’s immutable – nobody can alter previous entries and only new information can be added. This makes the system safe and trustworthy.

This technology has been utilized in everything ranging from elections and health systems to retail and real estate. Since information cannot be manipulated in this system, more and more companies have begun the process of blockchain integration.

Indeed, blockchain offers such strong privacy and security that many experts think it will completely revolutionize the way we live. Although many people still only associate it with cryptocurrencies, this technology has many other potential applications: securing health records, ensuring the integrity of elections, and giving unbanked people financial stability by allowing them to digitally store their funds, just to name a few. Bearing these things in mind, we can see a bright blockchain future ahead.

An Introduction to AI

You probably first heard of AI in 2001, when Steven Spielberg released a movie of the same name. If so, you might be surprised that the concept is much older than that, dating back to the days of Alan Turing in the 1950s.

Of course, AI has since evolved from an intriguing idea to a technology that has become extremely attractive to a wide range of businesses. Here are some of the reasons for that.

Machine learning and deep learning: Machine learning and deep learning are subfields of AI. They boost the overall performance of the technology by learning to predict and detect behavior and tasks gradually. With deep learning, machine learning, and blockchain combined, AI can be used to make life and work easier for millions of people worldwide.

Speech recognition: Speech recognition can be used to convert human speech into writing. One example of this in action is Apple’s Siri. Speech recognition still isn’t perfect; in most cases there’s a limit to the number of words it can recognize, and the words need to be pronounced clearly. It might also have trouble with certain accents.

Customer service: AI is perfect for those menial tasks that customer support agents might not have time to deal with. These virtual agents can instantly deliver information and solve a wide range of problems. When the time comes for the customer to speak to a real person, the AI bot can pass them on to a support agent.

Computer vision: Computer vision is a super-cool feature of AI that helps make sense of images or videos so that the computer can take further action. It has produced excellent results in fields such as healthcare and the automotive industry, which is why it’s one of the many important benefits of AI.

Recommendation engines: For digital retailers, one of the most useful aspects of AI is the existence of recommendation engines, which analyze shopping behavior and improve selling strategies. Recommendation engines also recommend appropriate add-ons while users shop online, a system that is sure to get even better in the future.

Automated stock trading: Automated stock trading works on stock portfolios and makes millions of trades entirely on its own. With a plethora of valuable features and functions, the idea to mix artificial intelligence and blockchain seems more than natural here.

Four Reasons Why AI and Blockchain Are Perfect Together

Of course, it doesn’t always make sense to talk about individual technologies in isolation. After all, an everyday gadget like your smartphone combines a huge number of ever-evolving technologies into one convenient package. In this next section, we’ll talk about some of the reasons why blockchain and AI work so well in combination.

Blockchain Can Make Sense of How AI Thinks

Even though AI has already helped many individuals and businesses, some people remain suspicious of it. One major setback in accepting AI has been that we don’t always understand how it makes decisions.

Blockchain and AI technology go hand-in-hand when it comes to understanding what’s going on in the “mind” of AI. That’s because blockchain can record the steps AI takes, giving us a better understanding of how it comes to its decisions and why we should trust them. Decisions recorded on a blockchain can be easily audited without concerns about the data being manipulated, adding transparency to the AI process.

AI Can Handle Blockchain Better than Humans Can

A human being should get better and better at their job over time, and the same principle applies to AI, only with much greater speed and efficiency. While most humans will likely have to spend their lifetime becoming an expert, AI will get to this point almost instantaneously if “trained” the right way.

Using “stupid” computers for blockchain-related tasks is not a great idea because they use up way more processing power and will not finish the task unless given specific instructions.

AI Can Make Smart Contracts Smarter

When we talk about blockchain and AI benefits, it’s hard to go past smart contracts. As the name suggests, smart contracts are smart, but they’re not perfect. As their codes are public, a cybercriminal with sufficient skill and patience can pick through the code and eventually find a loophole. AI can prevent this by verifying the contracts and predicting which parts can be exploited.

They Can Combine to Help Us Monetize Our Data

These two technologies can work in tandem to help individuals protect or monetize their own data. Data collected by giants such as Facebook and Google generate huge revenue. We users don’t have much say in how our data is collected and used, which can be harmful.

With blockchain, we can cryptographically protect our information and use it the way we determine. This means that in the future, we might be able to decide whether or not we want our data to be used, and we might even be able to sell it for a profit. As AI needs data to learn, AI companies will have to buy it directly from users, making this process way more transparent and fair.

Blockchain and AI Use Cases

Blockchain and AI are already being used in tandem across many industries, and that trend isn’t going to slow down any time soon. Here are the most common use cases.

Healthcare

AI has the potential to improve practically every aspect of healthcare. Its ability to rapidly process data, recognize patterns, and glean insights from patient records could make it an invaluable assistant to doctors and nurses. Blockchain complements this perfectly by providing never-before-seen flexibility and security; it allows patients to choose who can access their files, then revoke that access when it’s no longer required.

The Pharmaceutical Industry

AI and blockchain development is already having a significant impact on clinical trials within the pharmaceutical industry. Blockchain’s data management and AI’s analysis can lead to better information integrity, consent management, tracking, and transparency.

The Energy Sector

Another field in which blockchain and AI are already producing remarkable results is the energy sector. By automating complex processes, these two technologies can facilitate transactions of energy between consumers and generators. Some of the use cases include:

Peer-to-peer electricity trading: This involves buying and selling energy between network participants using smart contracts, greatly minimizing waste and reducing costs.

Renewable energy certificates: These are used for authenticating renewable energy supplies and automated recording in real time.

Grid management: Blockchain and AI enable the control of power flow and storage in the grid, helping balance supply and demand in the context of increasing renewable energy integration.

Finance

The combination of these two technologies is making financial operations much more manageable. Increased automation leads to quicker payments, creating more trust in the overall process. If an individual wants to get a loan from a bank and gives consent to process their bank details and information, the entire procedure is quicker and better with the help of blockchain and AI.

Supply Chain Management

AI and blockchain have combined to almost fully automate supply chain management processes, ensuring that data can be not only shared, but also trusted. This offers businesses a previously unimaginable level of control over their supply chain; they can trace the source of all of their products and keep track of shipments more easily than ever before.

Conclusion

Blockchain and AI are steadily making their way into the world of business and technology, making it easier for companies to secure and process their data and enhance performance. While some are still not convinced and there is indeed room for improvement, the benefits surely outweigh the doubts. The fact that an increasing number of people are signing up for blockchain and AI courses only proves that these technologies are here to stay. These two technologies have combined to improve many business processes, and their influence will only expand in the coming years.