Ones that refuse this innovation and choose to not implement it will either downsize as a business or completely cease to exist, it's simple, it has so many advantages that you can't do it manually, and in the long run, businesses that aren't using them will be left behind.
Although Artificial Intelligence and Blockchain are two different technologies that has, different developers and applications, researchers are starting to cooperate in creating something new that will shake up every industry.
How Can AI Add Value to Blockchain
AI and blockchain technology can create the world's most reliable technology, something that we didn't see before, something new. It can provide a stable decision-making system that can provide insights and decisions better than humans can ever do.
- Digital Intellectual Property Rights
- Intelligent Retail
- Intelligent Predictive Analysis
- Transparent Governance
- Smarter Finance
- Improved business Data Models
- Audits and Compliance systems
Benefits That AI Brings
There are so many great things that can happen if we mix up AI and Blockchain, here are just a few examples of what areas can be affected:
AI algorithms are great in decision-making about financial transactions and if they are fraudulent and if they need to be blocked or investigated. That mixed in with blockchain that is already secure can show great effect and act as double protection so you don't have anything to worry about.
Records of blockchain are considered a unique selling point. With AI implementation, this will mean users have a clear record to follow, and this in return helps AI bots trust each other. That will lead to more machine-to-machine interactions and that will help them to share data.
AI can optimize calculation and reduce the miner load which can lead to less latency and that will result in a faster transaction. That can effectively reduce the carbon footprint that miners are generating and in the future maybe AI can even replace miners. This will bring efficiency and it will be good for the environment.
Before AI, human experts needed time to get better at cracking codes, now there is no need for humans. And here is why, AI can help in controlling and managing blockchain systems better because of machine learning.
More Privacy and New Markets
The ability to make sensitive data secure will lead to the data being sold. This can create new markets, then the market gets easier and it allows for smaller players to gain blockchain privacy.
Blockchains are great for storing away sensitive and personal data, with the level of security it has you can be assured that nobody is getting to them. That mixed with AI if used correctly can add both value and convenience.
Use of AI and Blockchain
The potential use of a mixture of AI and blockchain is theoretically indefinite, but we can't explain something that doesn't exist yet so here are some examples of what it can do now.
Smart Computing Power
Operating on a blockchain requires a lot of processing power because of all the encrypted data it stores. Some algorithms are being used to mine Bitcoin blocks, this algorithm uses a brute-force approach.
The brute force approach consists of enumerating all candidates for the solution and checking if these candidates satisfy the problem statement before verifying the transaction.
AI can put a stop to this, it can do all this but more efficiently and intelligently, and that's all because of machine learning-based algorithms.
Although many people still imagine Wall Street as a bunch of people in formal attire on phones doing deals and making a lot of money, well we have something to tell you. It doesn't exist anymore.
Now, there are crypto bots that do all the trading, and there is a reason for that. Bots aren't emotional beings which means that the trading strategy you put in is the strategy that's going to be used, no more emotion-driven trading.
Also, they are far faster and can execute multiple trades at the same time because it doesn't have a thing called human error, and they work 24/7 nonstop. If you are interested in trying these you can try one of the numerous bots. For instance, you can try semi-automated bots on exchanges like KuCoin or fully automated platforms like Quantum AI.
Creation of Diverse Data Sets
There is a platform called SingularityNET, this platform uses the combined powers of AI and blockchain to create a smart and decentralized AI blockchain network. This network can host diverse data sets, and by creating API on APIs on the blockchain. That would allow the intercommunication of AI agents and as a result of that, diverse algorithms can be built on diverse data sets.
The pace of AI learning is completely dependent on us and the data we feed to it, the more data it has the better it's going to work. As long as we feed the information to AI it will continue to grow and expand.
On the other side is blockchain which is to put it simply a technology for secure and encrypted storage. The mixture of these two can allow for fully secured databases that can only be looked at by the people that have been approved.
For example, blockchain and AI will probably find use in medical and financial data, because these data are too sensitive to give to one company and its algorithms.
This can change the way our data is shared. Selling collected data is one of many sources of income for larger companies like Facebook and Google.
A mixture of AI and blockchain can allow us to monetize our data without a breach of personal information. This same as we are talking about will need our information to learn and develop, but it will be required to buy data from its creators rather than large companies that exploit users' data.
This way even smaller companies can use and develop their own artificial intelligence, which was not the case before because data was so much expensive, but through decentralized marketplaces, it will be more affordable for them.
AI Decision Making
With more time AI will become much smarter, when we get to that point it will become so much harder for scientists to understand how AI comes to a particular decision or conclusion. That is because AI can process abnormally large amounts of data and variables.
If blockchain is programmed right, all steps from start to finish could be observed by data scientists, and they will keep this data protected so nobody can manipulate it.
The combination of AI and blockchain technology still hasn't reached its full potential, and that's far from happening, to be quite honest they are largely undiscovered areas. It does have some uses but it's still far away from groundbreaking technology.
It's almost unimaginable what these two can do with data, and the way they can process it when combined, but as we said this is still for the most part undiscovered.