Artificial Intelligence (AI) technologies are experiencing a revival period, with widespread adoption of cutting-edge techniques such as computer vision, Natural Language Processing (NLP), synthesis, machine translation and large dataset processing and analysis. Concurrently, a new technology, called Blockchain or Distributed Ledger Technology (DLT), is rising in popularity. This innovative technology employs advanced cryptography and decentralised ledgers to offer a secure and transparent transaction platform. It’s undeniable that both these remarkable technological advancements cannot be overlooked.
In this article, we delve into the past and future of artificial intelligence (AI) and blockchain technology, examining how these two remarkable innovations can be fused together to achieve their maximum potential.
The renewed interest in AI, coupled with the ever-increasing volume of data, has
The availability of easily accessible data and the decrease in computing costs have led to a revival of Artificial Intelligence (AI). This upswing in technology has made it clear to businesses that computers can accomplish complex tasks with accuracy, and in certain instances, even outperform humans. In fact, several major corporations such as Google, Amazon, Facebook, Alibaba, and numerous others have already implemented AI to increase efficiency and optimise profits.
The swift development of blockchain technology, popularised by Bitcoin, has advanced substantially in recent times alongside the resurgence of artificial intelligence (AI). It’s considered the technology that will usher in a new era of transformative change in the way social trust, personal identity and financial transactions are conducted. With the power to significantly influence how we interact with one another and the world, blockchain technology has the potential to revolutionise our way of life.
The internal mechanisms of AI
To perform tasks that traditionally demand human intellectual and cognitive abilities, we have come to depend on Artificial Intelligence (AI). Such AI algorithms have been utilised for undertaking functions such as data analysis, classification, and prediction. Furthermore, unlike traditional software, AI models can expand and modify themselves with the inclusion of fresh data. This enables them to consistently enhance their performance and precision.
Artificial Intelligence (AI) is the implementation of computer science techniques to replicate human intelligence and behaviour, with a primary emphasis on decision making and problem-solving capabilities. Within this major segment, two prominent sub-fields are Machine Learning (ML) and Deep Learning (DL). These specialisations use AI algorithms to make predictions or classifications based on existing data, and improve their accuracy and efficiency with increased usage.
AI offers the following advantages:
- Automation to eliminate tedious tasks
- Enabling better decision-making
- Enhancing customer satisfaction.
Machine Learning (ML) enables data mining which is an effective technique to reveal insights and acquire a deeper comprehension of data. In general, the greater the amount of data, the more accurate the ML models become. To guarantee the success of these models and ensure dependable outcomes, it is critical to regularly refresh the datasets with relevant and up-to-date information. The quality of the data used is crucial to the success of this process.
The effectiveness of Artificial Intelligence (AI) largely depends on the data it analyses. Blockchain technology can enable the secure and collaborative sharing of data, ensuring its integrity and making it possible to share more data for AI algorithms to extract insights from.
Explanation of how Blockchain Functions
Blockchain is a secure and decentralised ledger that enables rapid and encrypted sharing of data between multiple parties at the start and end of a transaction. This innovation can be used to document orders, payments, accounts, production, and various other aspects. As all parties consent to a single version of events, businesses can operate confidently while collaborating with validated members.
A public blockchain such as Ethereum can be accessed and used by anyone without requiring an invitation. However, private blockchains are commonly employed in business environments as they restrict network access to invited members only. Furthermore, transaction validation on private blockchains can be significantly faster than public ones since the participants are known and trusted.
Blockchain technology offers a secure and seamless platform for transactions and data sharing among unrelated parties using a single ledger. Transactions are authenticated through cryptographic techniques and consensus protocols, such as proof-of-work (PoW), which is crucial as it allows people to engage in business activities without depending on the credibility of other participants or external authorities for validation.
The extensive adoption of blockchain technology is expected to have a profound impact on financial transactions and data sharing between organisations. People may be more inclined to trust data that is stored on a blockchain, even if they cannot personally authenticate its accuracy. This could result in a rise in trust and transparency between companies, as well as enhanced security when transferring funds.
Cryptography is the foundation of blockchain to uphold the accuracy of its data, transactions, and identities. Moreover, it ensures:
- Resulting in immutable records that are completely secure and unchangeable.
- Participants can authenticate data integrity without visualising it, and they can only access data that they are permitted to view.
- Since distribution is simple, all blockchain participants can access an updated and communal version of the ledger at any moment. This unified ledger ensures the accuracy and dependability of the information it contains, providing a singular source of truth.
The Significance of Combining AI with Blockchain
In the years to come, both Artificial Intelligence (AI) and blockchain technology are projected to be broadly implemented in enterprise and custom software development due to the multitude of benefits they offer.
Improved Energy Efficiency
Google, the prominent search engine, has effectively extracted valuable information from expansive datasets through the use of machine learning. Within its data centres, Google has employed hundreds of sensors to aid its DeepMind artificial intelligence system. As a result, the company has experienced a decrease of up to 40% in energy consumption required to maintain the temperature of its data centres. Other organisations can potentially emulate this method to increase efficiency and lower the expenses of mining equipment.
Increased Safety Measures
The encryption capabilities of blockchain technology can ensure the protection of users’ data. For those who need to store sensitive information like medical records or personalised recommendations, blockchain technology is an optimal solution. Nonetheless, considering that Artificial Intelligence (AI) systems rely on enormous quantities of data to function, numerous researchers are studying methods that would enable safe interaction between AI and encrypted data.
It is worth noting that there is an alternative standpoint regarding the strengthening of security measures. The fundamental security of a blockchain is firm and dependable, but it could be open to breaches attributed to third-party integrations, as seen with DAO and Bitfinex, among others. Banks have the ability to utilise machine learning to integrate blockchain applications more seamlessly and predict any potential security complications.
Market Access and Data Management
Efficient data management and storage are pivotal in securing data. By incorporating a distributed ledger to save immense quantities of encrypted data and utilising artificial intelligence (AI) to manage it adeptly, new applications can be uncovered. For instance, blockchain technology could be utilised to store data and safely sell access to it, resulting in the emergence of data models and AI marketplaces.
The integration of big data from platforms like Facebook and Google in artificial intelligence (AI) programmes is becoming more widespread. With the adoption of blockchain technology, small businesses have access to the same pool of data and AI capabilities as their larger counterparts, thus creating a more balanced competition.
The utilisation of Blockchain technology in collaboration with Artificial Intelligence (AI) has shown to elevate data management procedures. To authenticate a transaction, computers can try various character combinations to decrypt encrypted data. Through this approach, AI acquires expertise and becomes more adept at executing the task.
Blockchains offer an optimal solution for safeguarding confidential data that could be beneficial and useful for Artificial Intelligence (AI) processing. One instance of this is the use of intelligent healthcare systems that can accurately diagnose by scrutinising patient records and test results.
Applications of AI and Blockchain Technology
The adoption of blockchain technology and artificial intelligence (AI) is transforming the financial services industry since they can enhance trust, simplify dealings with several parties, and hasten transactions. These breakthroughs are significantly influencing the industry and will continue to mould its future.
The procedure for obtaining a loan has been transformed through the use of distributed ledger technology. By requesting candidates to permit the storage of their personal data on a ledger, both parties can have increased confidence in the precision of the information and the automated assessment methods involved in the process. This leads to faster closings and enhanced levels of client satisfaction.
Artificial Intelligence (AI) has the potential to dramatically enhance healthcare provision, from creating new treatments to satisfying patient needs, identifying meaningful insights from patient data and patterns. Furthermore, electronic healthcare records, along with other sensitive patient information, could be securely kept on the blockchain, allowing healthcare providers to work together and exchange information while respecting patient confidentiality.
Supply Chain Traceability
Blockchain and Artificial Intelligence (AI) have been crucial in revolutionising supply chain management across several sectors. By digitising paper-based methods, data can be quickly and securely shared, while transaction processing can incorporate intelligence and automation. This is evident in a company’s endeavour to lessen their carbon footprint, by gathering data about carbon emissions from the product or component level.
In the Life Sciences Sector
The potential to enhance the effectiveness of clinical trials is vast by harnessing the power of blockchain and artificial intelligence (AI). These technologies can enable greater transparency and traceability in the dissemination of pharmaceuticals, ensuring data integrity, better patient monitoring, permission management, trial participation, and automated data collection. A distributed clinical trial infrastructure can be combined with the latest advances in data analysis techniques to attain these results. As a result, these technologies can increase the efficacy and precision of clinical trials outcomes.
The collaboration between Artificial Intelligence (AI) and blockchain technology can produce tremendous outcomes. By merging these potent technologies, it is feasible to bring about significant transformations to the global landscape. Utilising a combination of the two has already resulted in several use cases that demonstrate the strength of their combined power. By employing the correct combination of AI and blockchain, the prospects for shaping the future are substantial.
Does the blockchain incorporate any form of AI?Ans: Yes, in essence, blockchain refers to a distributed ledger system, while AI blockchain denotes a blockchain system enhanced with artificial intelligence (AI). Within the blockchain network, intelligent agents can manage a digital ledger, facilitating secure and efficient data storage and transmission.
Does blockchain technology operate similarly to AI?Ans: Artificial Intelligence (AI) and blockchain technology are distinct despite the potential for integrating AI into blockchain systems. AI involves machines mimicking human behaviour and reasoning and can be incorporated into various tools and services to provide intelligent functionality. On the other hand, blockchain is a distributed ledger system that guarantees the security of digital transactions or records. Although the two technologies are different from each other, they can be combined to create secure and intelligent solutions to complex problems.
What are the benefits of integrating blockchain technology with AI?Ans: The integration of artificial intelligence (AI) in banking and healthcare industries is highly reassuring and provides a sense of security, as AI is well-suited for data intelligence and data security applications, which necessitate extreme caution. By merging blockchain’s security features with AI, industries can protect sensitive data in a secure environment. This synergy also enhances processing efficiency, enables access to secure networks and facilitates accurate data analytics.