Blockchain and Artificial Intelligence (AI) are among those emerging technologies, which have made inroads into various sectors due to their usability and futuristic approach. Blockchain with its extremely potent cryptographic tools and immutable distributed ledgers has already disrupted the domain of the finance sector. While AI has usurped the place of traditional software to future predict and now resurged itself with Natural Language Processing (NLP) and analytics.
Here in this article, we will know about what are those important factors through which AI is impacting blockchain technology and how the collaboration of both technologies can benefit us.
What is AI and how it works?
Artificial Intelligence (AI) is all about the ability of a digital computer-based product to perform tasks that are generally associated with intelligent human brains. Theoretically, it is an extended branch of computer science and performs certain human actions like learning, reasoning, and self-correction. Over a period of time, AI algorithms make use of Machine Learning (ML) and Deep Learning (DL) to deliver more accurate predictions when new data is been provided.
There are certain different specialized application of AI applications which includes speech recognition, machine vision, and also expert systems. AI along with ML functions by combining large sets of data with fast, iterative processing and intelligent algorithms. Datasets play an important role in ML, as the larger and better quality of datasets help it stay relevant and thereby contribute to the successful performance of AI.
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What is Blockchain technology and how it works?
Blockchain is a DLT-based technology that allows participating parties to transact on a real-time basis on its immutable network. Blockchain is a growing set of records, which are referred to as blocks. These blocks are linked together using cryptography and each such block refers to the preceding block, together many such blocks make it into the blockchain.
Blockchain consultants with help of blockchain technology have empowered businesses around the world in doing several things like cross-border payments, tracking, and revamping supply chains, and in all of these blockchain has earned the trust of people due to the trust-less environment it offers.
What are the impacts of combining AI and blockchain?
There are many beneficial impacts when the collaboration of AI and blockchain happens at the enterprise level and here we will discuss some of those results.
Improved efficiency
AI can minimize the cost incurred in data mining, which is an energy-intensive and time-consuming process. While the same has been demonstrated by the DeepMind AI of Google, which is well-trained in extracting relevant data through hundreds of sensors at their data center. It is reported that through this project they have managed to cut short their energy consumption by around 40% at the data centres.
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Increased security
Blockchain as a technology has been known for keeping highly confidential information well-protected through its immutable cryptographic techniques. While AI demands a constant supply of large chunks of data and there have been plans to club both technologies together so that the data required for AI gets routed through the blockchain.
Routing large chunks of data through the encrypted tunnels of blockchain would set another benchmark from the perspective of enhanced security. The banking and financial industry can greatly benefit from this, as machine learning will help blockchain-based dApps in predicting possible security threats in advance.
Efficient storage
AI-related sensitive data containing personal information when stored with blockchain can offer great value and convenience through its efficient way of storage. A great example is the AI-based smart healthcare system which can diagnose with the help of medical records stored in the blockchain network.
Exposure to the data market and data management
Distributed ledgers have the potential to hold large amounts of encrypted data and AI knows how to efficiently handle it while putting it to good use. Small-scale enterprises can utilize this data pool with AI to scale up their businesses, as when these two technologies amalgamate, they enhance data management to a level where it can predict and suggest certain customizations.
Conclusion
Blockchain is not just another technology down the line but the next generation of the internet that has varied applications, while AI has the power to transform the software market. A senior blockchain developer at Rejolut opines that, since we are talking about the collaboration and convergence of these technologies, we must say that they both have a bright future. AI and blockchain collaboration is still in a nascent stage, but in the future, these technologies together will open up a whole new world of possibilities for creating more smooth, efficient, and scalable enterprises.
