The wide adoption of cryptocurrency recently has made blockchain gain the spotlight globally in no time. And in today’s time, blockchain is not a concept that is confined to financial institutions only, but it has proved its influence in other industries as well.
As per a recent report, it is depicted that the blockchain technology market size will cross 23.3 billion US dollars in size by 2023.
And while heading towards the ‘Fourth Industrial Revolution’, the terms like AI, IoT, blockchain, ML, have become mainstream, which are gradually becoming an integral part of our lives. You may consider reading about integration between Blockchain and IoT. And when we talk about AI and blockchain technology, both of them are a great thing in itself, but industry experts have been experimenting for a while now on integrating both these technologies.
Since both the terms are not very old in the industry, people are unsure about its success, so this move actually demands a lot of expertise and thorough research before declaring this integration as a successful thing.
So, in this post, we’ll discuss how the parallel move of both these technologies is going to be a success for the digital world in the coming time. So, let’s get started!
Table of Contents
Integrating Blockchain and Artificial Intelligence
Every technology has its own set of complexities, but integrating two technologies can be a beneficial step for both. AI and blockchain, both of them are very different technologies. Artificial intelligence is centralized and its outcomes solely depend on probability. And the complex algorithm process that exists between the input and output is never exposed.
However, blockchain has a decentralized architecture and the data in a blockchain is transparent. Because of cryptography, the data is stored securely and there is no scope of data alteration. Entire data in the blockchain ledger is time-stamped and the data gets circulated among the nodes.
With the integration of both concepts, we can expect better results, greater efficiency, accountability, and deeper insights.
Want to know the benefits in detail of combining both the technologies and acknowledge how businesses and end users can expect better outcomes? Continue reading!
Because of the encryption technique, data in the blockchain is securely stored. So blockchain is a great way to store the confidential data or any sort of sensitive information of a business and the customers. And what AI needs in high volumes is data.
Presently, industry experts are creating algorithms that enable AI to operate with encryption data without revealing it. And machine learning in financial institutions will enhance the blockchain app deployment and identify the system breaches as well.
Gaining Customer’s Trust and Wide Adoption
No matter how popular and impressive AI technology is, people won’t adopt it unless they trust the technology. And when we talk about AI that why users still hesitate to adopt AI is the unfeasibility while explaining decisions made by AI. And if these issues are fixed, AI will gain wide customer adoption overnight.
However, with the integration of blockchain technology, the way how a computer thinks is made transparent than ever before. The distributed ledger store every AI decision and makes it viable for analysis. It ensures that the data remains tamper-proof from recording to examination.
Improved Data Management
Artificial intelligence operates over the centralized database, which brings along the scope of large data losses or alterations in case of any failures. However, with blockchain technology, you can store data in multiple nodes, which ensures that you will not lose the data at any cost.
Not only this, since the data is time-stamped and organized in chronological order, but the data recovery process also becomes even easier and accurate enough.
Overcoming pitfalls in smart contract
Even blockchain technology has technical issues that give an invitation to hacking and malicious attempts. The smart contracts aren’t that smart in reality and they release and transfer funds right away based on some conditions.
As smart contracts can be accessed by the public, hackers can go through the code and find the loopholes easily. AI assists in the verification of smart contracts and identifying the vulnerabilities that can be misused. Furthermore, AI even perfectly deals with contracts on its own while it generates and dynamically adjusts smart contracts.
In a Nutshell
Undoubtedly, AI and Blockchain are entirely different concepts that have different operations. AI has a centralized architecture, while blockchain has a decentralized architecture that makes them totally opposite.
However, both of them have complexities and pitfalls; together they can overcome them and prove outstanding results in the digital landscape. To leverage more about the capability of this integration, more and more researches are being carried out, and we can expect a lot out of this in the coming time ahead!