In today’s world, artificial intelligence (AI) and blockchain are the most popular and disruptive technologies.
Machines can simulate human intelligence and decision-making abilities using artificial intelligence. As a result, AI aims to automate repetitive tasks, boost decision-making, and improve customer satisfaction.
A blockchain is a decentralized network of computers used to store and record data sequentially with the intent of displaying them on a transparent and immutable ledger system.
A convergence of AI and Blockchain may lead to the emergence of new business models. The combination has proved to be successful for organizations, allowing them to manage their databases more efficiently, strengthen security, and perform repetitive tasks more effectively than humans.
Curious to know more about blockchain and artificial intelligence? Here you will find the information you need.
Here, I will present you with a summary of what blockchain technology & artificial intelligence is, and how AI can add to blockchain technology.
What is Blockchain Technology?
Blockchain acts as a platform for transmitting digital information without any risks of copying. In a sense, it has laid the foundation for the backbone of a new kind of internet space. Originally designed to be used with Bitcoin – explaining how its algorithms, hash functions, and digital signature functions operate. Today, technology enthusiasts are finding even more ways to use this excellent creation, which could usher in a whole new era of business.
In simple words, Blockchain to be defined in all respects is a kind of algorithm and data distribution structure for the management of electronic cash without the intervention of any centralized administration, programmed to record all financial transactions as well as everything that holds value.
Understand the working of the Blockchain
It can be described as DLT (Distributed Ledger Technology) which was used to support the Bitcoin cryptocurrency. After heavy criticism and rejection, a revised version of the technology was developed for more productive purposes.
Think about a spreadsheet that has been multiplied hundreds or even thousands of times across a wide range of computing systems. Then consider that these networks are designed to update this spreadsheet from time to time. That is precisely what blockchain is for.
In the blockchain, information is stored in a shared sheet, whose data is reconciled periodically. It is an easy and practical method with many obvious benefits. With regards to blockchain data, it is not centralized. All the information it contains can be viewed and verified by the public.
Furthermore, there is no centralized information storage platform that hackers can compromise. Over a million computers can access its data simultaneously, and anyone with an internet connection can access the data.
Some of the salient features of blockchain
It stores blocks of information that are identical across a network. A few of its great features are described below.
- No single entity can control the data or information.
- A single point of failure can’t exist either.
- The data are stored in a public network, ensuring that the overall process is transparent.
- Neither the data nor the program can be corrupted.
What is Artificial Intelligence?
AI, or artificial intelligence, refers to the simulation of human intelligence by machines.
It can be described as a technology advancement that focuses on the creation of machines that are intelligent and behave like humans in real-life situations. In order to achieve a reflection of human intelligence, artificial intelligence can perform a lot of processes. Human intelligence includes many different processes, including reasoning, learning, and self-correction.
Artificial intelligence is responsible for acquiring information and learning how to use it.
The use of AI can be found in speech recognition, planning, problem-solving, learning, expert systems, and machine vision, among several other things. In some cases, even computer systems are designed with the help of AI to perform certain tasks.
The types of artificial intelligence available today.
Weak and strong intelligence are two types of artificial intelligence. Weak intelligent systems are limited to performing one task at a time. Personal assistants, such as Alexa and Siri, fit into this category.
Strong intelligent systems are complex, complicated, and can perform tasks as well as humans. Having been programmed to act without human intervention, they are capable of handling most situations.
Applications of artificial intelligence
Artificial intelligence has applications across a wide range of industries and sectors. The healthcare sector uses AI to administer drugs to patients and perform surgeries in the operating room. In recent years, self-driving cars have become a massive hit. These cars are AI-driven, so they have to decide which actions to take as the results depend on their decisions. Autonomous cars need to take external data into account and act accordingly to avoid a collision.
In the banking and financial industry, artificial intelligence is also present. These systems can flag suspicious transactions, such as large withdrawals and unusual debit card transactions, for fraud detection departments at banks. By making it easier to estimate the supply and demand of securities, traders can make more informed trading decisions.
Using the Natural Learning Process, speech recognition can convert human speech into written form. The feature is included in numerous mobile devices. In the customer service industry, online chatbots are replacing human correspondents by enabling users to select the problem they need help with so the bot can understand, and then it provides answers based on the bot’s understanding of the user’s needs. Computer vision is a field of artificial intelligence that enables computers to gather information from images, texts, and other media, and then act based on that information. In addition to photo-tagging, artificial intelligence is used for medical imaging and many other applications as well.
AI algorithms can discover data trends that can be used in cross-selling strategies using past consumer behavior data patterns. Add-ons at the end of the checkout process also rely on AI algorithms.
Benefits and Limitations of Blockchain Technology in Artificial Intelligence
Blockchain has always been discussed in connection with cryptocurrencies as a means of payment. However, Blockchain technology is now used in other areas such as digital identity management and supply chain management.
In this section, we will explore the great benefits and limitations that come with the integration of blockchain and AI.
Benefits of using Blockchain Technology in Artificial Intelligence
Blockchain technology offers many advantages when integrated with artificial intelligence, as outlined below.
Enhanced Data Security
A Blockchain network is a decentralized system, which means all the information held within it is completely secure. Blockchain is preferred by industries that deal with sensitive & private information because it provides a disk-less environment to store such information. Unlike conventional databases, blockchain databases are digitally signed, which means only users with their private keys can access the data.
Artificial intelligence and Blockchain technology can work together to establish a more secure environment, allowing for more trusted and credible decisions.
Improved Trust in AI Decisions
AI-driven decisions fail when users cannot understand them and trust them. Utilizing blockchain with AI, you can exploit the decentralized ledger system of the blockchain.
Decentralized transaction systems record the transaction on a point-by-point basis. With the assurance that all transaction data hasn’t been altered, users can trust the AI’s decisions easier.
Furthermore, the need for human involvement during the transaction auditing process can be eliminated, thanks to the decentralized approach of blockchain technology.
Distributed Computing Power
Artificial intelligence typically draws its power from one computing platform or computing environment. Nowadays, when the volume of data is increasing, traditional computing platforms have a hard time producing the computing power needed to perform artificial intelligence. As a result, the hardware cost and maintenance costs of AI-based enterprises have risen. Blockchain is a decentralized network and distributed by nature, which has proven helpful in establishing a wireless network for producing the mass power required for the stable working of artificial intelligence.
There are several industries where multiple stakeholders are involved in the decision-making more secure environment process. Therefore, while making any transaction, the affirmation of all stakeholders is required which is a time-consuming process. Incorporating blockchain technology and artificial intelligence into one system can guarantee automation and rapid validation of transactions by creating a highly intelligent decentralized autonomous agent.
The Limitations of Blockchain Technology in Artificial Intelligence
Alongside several great advantages, the integration of blockchain and artificial intelligence also has some limitations as follows.
Scalability is the biggest limitation in the integration of blockchain technology in artificial intelligence. Blockchain decentralized applications (DApps) run on existing blockchains. However, they cannot be implemented on a large scale if the computing power of the system is inadequate.
Since blockchain works on the peer-to-peer distributed network, any delay in the network nodes will limit the scalability of the entire system.
Constructing, deploying, and managing a Blockchain network between stakeholders is a complicated endeavor. Even within a private network, there are some serious issues related to blockchain governance, such as what type of blockchain should be deployed, who should administer the blockchain, who should write the smart contract, how settlements should be handled, and so on.
This limitation factor might seem a bit contradictory, as earlier we were stating blockchain as a secure network.
Let me explain this in brief to you.
The public ledger is considered the most authentic and reliable, however, all readers can access the collected information. This is something that might bring a fear of concern to a lot of people. Besides this behaviour tracking system in IoT collects user information and puts them on the public ledger which leads to great privacy risks.
By adhering to the private ledger in the blockchain, the risk of privacy invasion is increased. However, by doing so, the blockchain will limit access to the large amount of data that AI requires to work. As a result, the AI’s ability to generate accurate information and make informed decisions will be greatly impacted.
Lack of Standards, Interoperability, and Regulations
Despite the buzz surrounding blockchain technology, its technology standards are yet to be formulated. Moreover, at a local and global level many standards bodies including IEEE, NIST, ITU, are working to formulate standards for Blockchain technology.
An Ideal Model of Blockchain and Artificial Intelligence
In the world of technology-enabled decision systems, blockchain and artificial intelligence take the lead. In recent years, AI and blockchain app development services providers have investigated how these two technologies can be integrated to maximize their benefits to industries.
In recent days, you must have heard the term data handling. Whether it is a private institution or a government organization, it is inevitable to shield the data. The convergence of blockchain and artificial intelligence has a great impact on data handling, alongside several other issues that need to be addressed.
In blockchain technology, the data is divided into smaller parts and then it is distributed among the whole distributed network of computers. As blockchain is decentralized by nature, there is no central body to govern the data distributed. In the blockchain, the computers keep a complete record of every transaction. Therefore, if any computer breaks down, the data is still accessible.
The ideal example of the combination of artificial intelligence and blockchain technology can be seen in the healthcare industry. Where blockchain comes into use to store the data of diseases, diagnosis, patient medical history and so on. While AI brings a better user experience, presenting the data in a simple and understandable format. Thus, the fusion of AI and blockchain technology will yield positive results.
Now that you are familiar with what is AI & blockchain technology, benefits & limitations of AI and blockchain fusion, alongside an ideal model of blockchain and artificial intelligence. Now, let’s discuss how to hire artificial intelligence services from the best company?
The following are some of the key skills which will help you find the ideal blockchain and AI integration services for you.
- Technical skills of companies AI and blockchain developers
- Ability to incorporate new technologies
- Curiosity and creativity.
Finally, let us know your thoughts about the reading.
An author of Namaste UI, published several articles focused on blogging, business, web design & development, e-commerce, finance, health, lifestyle, marketing, social media, SEO, travel.
For any types of queries, contact us on info[at]namasteui.com.