Are Blockchain and AI an Ideal Match called Blockchain AI?
Are Blockchain and AI a winning combination? Can Blockchain AI make the best team? Let’s get started on answering these questions.
Blockchain technology AI (Artificial Intelligence) are the most basic and brilliant ways information transmission techniques have altered. It provides an open network where individuals can safely, transparently, and immutably move information or money.
Blockchain has been eclipsed by the popularity of cryptocurrencies over the years. However, it has lately gained widespread attention, and, most importantly, blockchain can integrate with other technologies. So, can blockchain AI exist?
AI and blockchain are vital technologies enabling the current digital transformation wave. The confluence of these technologies has the potential to provide the groundwork for new business models. For example, using blockchain, autonomous bots may be designed to receive and transmit money. Is the blockchain AI convergence worth the hype? Let us find out in the debate that follows.
Understanding the Relationship Between Blockchain and Artificial Intelligence
Blockchain has always found a place in talks concerning cryptocurrency payments. As multiple blockchain use cases gained prominence, the potential for merging blockchain with AI surfaced. Non-financial use cases of blockchain-like digital identity management and supply chain management, on the other hand, have shown more about its potential. Let us first define the words before delving into how they are related.
Blockchain is a distributed digital ledger that is shared across network participants. Peers or nodes agree on transactions to be added to the blockchain network. Transactions on the web are stored on blocks with unique hash values and time stamps to ensure their integrity. The word “blockchain” refers to connecting blocks in the form of a chain. The chain of linked peer-to-peer networks is immutable and provides the needed data security.
The capacity to simulate human intellect via technology is known as artificial intelligence. The blockchain fake intelligence equation relies heavily on AI’s skills for providing technology solutions with cognitive characteristics. Artificial intelligence aims to reduce human mistakes while assuring speedier operations. As a result, both AI and blockchain want to accelerate processes. Using these together gives some intriguing possibilities for increasing blockchain applications across multiple areas.
Blockchain AI Combo Trends
In the future, combining artificial intelligence and blockchain might result in significant advancements. A thorough grasp of current trends related to the blockchain AI interaction might aid in determining the grounds for contemplating the combination. According to the International Data Corporation, worldwide AI spending will reach over $57.6 billion by 2020. Surprisingly, roughly 51% of enterprises used the AI and blockchain mix. Existing AI in blockchain trends would enhance blockchain by offering the following features,
- Data security
- Intelligent computing power
- Data commercialization
- Collection of several data sets
Blockchain might potentially offer a better platform for AI research. It may aid in the analysis of decision-making processes in machine learning. Blockchain technology might assist in precisely recording all data and variables used in AI algorithm decision-making. Furthermore, blockchain AI convergence is advantageous due to guaranteed increases in blockchain efficiency. Artificial intelligence, for example, might aid in automating different parts of blockchain administration, such as audit trail monitoring.
AI and Blockchain Distinctions
The current circumstances around the blockchain AI combo reveal that it is legitimate to begin exploring AI-enabled blockchain solutions. However, it is also necessary to understand the distinctions between AI and blockchain to determine if they are a good match.
The most critical aspect which differentiates blockchain AI refers to centralization. AI is ultimately a centralized technology, while blockchain is all about decentralization.
The following essential difference between Artificial Intelligence is transparency. While blockchain is simple to grasp and offers more options to get started, artificial intelligence includes numerous sophisticated algorithms and ideas.
It is natural to ask if these distinctions may provide difficulties in adopting AI-powered blockchain solutions. The benefits of combining these two influential technology trends can overshadow these differences.
Also, read – Blockchain Analytics – 5 ways Blockchain is Impacting the Data Industry
The Benefits of Combining Blockchain AI
When operating separately, it is evident that two different technologies have distinct characteristics. However, using the best of both for the more significant benefit is seen in a blockchain and AI combination. Here are some of the most prominent benefits of merging blockchain AI.
AI & blockchain could provide a substantial boost for improvements in encryption. First of all, AI has formidable potential concerning security. Recent AI developments have focused on developing algorithms capable of working with data in an encrypted state. This is a security risk, while blockchain security algorithms can make a supportive intervention with knowledge stored in an encrypted format.
Blockchain AI applications can offer the advantage of storing sensitive personal data. With the ideal and intelligent processing approaches, the data could help unlock convenience and value. For example, intelligent healthcare systems could ensure precise healthcare routines by scanning medical records with assured security.
Ease of Blockchain Management
The benefit of better management is why it is essential to consider blockchain AI combinations. We have always had fast computers, without any idea what to do until provided with specific guidelines.
Hashing algorithms for mining blocks are based on a brute force technique by trying different combinations of characters to find a suitable alternative for verifying a specific transaction. So, it is visible that dealing with blockchain takes a lot of processing power to carry out each process. Blockchain and AI could be reliable solutions for addressing this issue.
AI can help shift away from the brute force approach, thereby managing tasks with intelligent and reasonable systems. AI algorithms are made for learning with every interaction within seconds that a human expert would take many years to learn.
The year 2021 will bring more opportunities to the Blockchain Ecosystem.
Top Blockchain AI Applications
The advantages of blockchain, when used in combination with AI, have a formidable advantage over the conflicts between them. However, any concept appears good on paper. Theoretically, it is possible to conjure strategic plans and models for AI-based blockchain solutions. But, are there any practical applications of blockchain and AI put together? An overview of some real examples of AI-powered blockchain solutions could help you understand the value of combining both.
One of the most important blockchain AI projects in recent times is Botchain. it provides the ideal nurturing ground for expanding and connecting AI-bots and software.
2. Matrix AI
Second top name among the renowned applications of blockchain and Artificial Intelligence used together is Matrix AI. Matrix AI can leverage AI-powered technologies, for example, natural processing language, to offer blockchain functionalities. The features of the Matrix AI project contain AI-based cybersecurity, a dynamic delegation system, etc
The unique highlight of the tool is the AI-powered secure virtual machine which can help identify possible drawbacks. It also offers detection of malware alongside maintaining resilience in the event of high-intensity attacks through generative adversarial networks.
SingularityNET is also another excellent example of using blockchain AI together. It is a full-stack AI solution based on a decentralized protocol.
The SingularityNET platform is the core infrastructure for enabling communication and transaction between AI services. It can help users leverage a worldwide network of AI agents, algorithms, and services.
Turning our attention towards Numerai as one of the top blockchain AI projects is also essential. Numerai is a tournament in which users must develop models using predefined R and Python scripts.
Resistance to change is evident as many business leaders could introduce machine learning quickly. However, the same does not apply to the blockchain. When combining AI with blockchain, potential modern-day solutions could become fuzzier.
Substantial investments in improving the computing capabilities of AI-based blockchain solutions are also a critical challenge for the AI-blockchain combo. It is essential to sustain your confidence in the potential of combining both.
The capabilities of Artificial Intelligence can offer good advantages for different sectors. For example, blockchain helps improve Artificial Intelligence algorithm traceability, and Artificial Intelligence could improve the transaction speed and resource effectiveness of blockchain applications. The exciting factor is that both the innovative technologies have much to offer for improving each other.
However, looking out for the differences between blockchain AI is also essential. On the other hand, the challenges of combining both also play a significant role in defining their future together. Learn more about blockchain and how AI serves as its ideal companion.