Integrating Artificial Intelligence With Blockchain Technology — Top 5 Advantages

Combining two of the most talked-about technologies sounds exciting, right? But are there actual advantages to fusing blockchain and artificial intelligence (AI) technologies? Will combining these two be a wise business move or only an intriguing experiment? Let’s do some investigation.

Blockchain vs AI: What Are The Top Trends Nowadays?

Blockchain became a buzzword due to the bitcoin mania from last year. Disruptors, though, have already been experimenting with the technology for some time. A total of $21,717,148,705 has been raised through 942 ICOs this year. Not to mention the many blockchain-based startups that raised money without an ICO.

Finance, communications, and trading are the top three industries utilising blockchain technology. The Forbes Global 2000 list now includes distributed ledger technology, with at least 50 corporations beginning to utilize the blockchain; the most prominent names being the Industrial and Commercial Bank of China (ICBC), JPMorgan, Berkshire Hathaway, and Apple.

“Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the centre. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.” Vitalik Buterin told this to The Huffington Post in an interview.

Artificial intelligence software development has been around for a long time, and new applications and advancements are made monthly. AI has recently been used in technologies that forecast financial market movements, treat patients with neurological problems, and translate data into interesting narratives.

When putting together, the two complement and enhance each other, and it is up to entrepreneurs to explore ways to implement the two, to gain the benefits of more profound insights, greater efficiency, and accountability.” — Yoav Vilner, Forbes

According to Adobe, 47% of firms with a developed digital presence have a clear AI strategy. While the blockchain is still relatively young in the computer sector, artificial intelligence is unquestionably a full-fledged participant in contemporary commercial operations. Although both technologies have a ways to go, experts agree that merging AI with blockchain is a solid idea.

These two technologies will be widely used in commercial and bespoke software development services over the next five to ten years. Industry executives who are forward-thinking and tech-savvy already understand the vast benefits of combining blockchain technology with AI.

Let’s look at several ways you might improve your business by combining blockchain with AI.

Increasing security: Due to built-in encryption, data in a blockchain is well-protected. Highly confidential personal information like medical records or individualised suggestions is ideal for storage on a blockchain. Artificial intelligence requires large volumes of data that are continuously available. The algorithms that will enable AI to interact with encrypted data without disclosing it are currently being developed by experts.

But there’s another perspective on security advancements. Although blockchain is secure at its core, extra layers and applications are risky (consider breaches of DAO, Bitfinex, etc.). The adoption of blockchain applications will be improved, and machine learning in the financial sector will help to foresee potential system breaches.

Understanding how AI thinks: No matter how advanced AI is, if people don’t trust it, they won’t use it. The inability to fully understand machine judgments is one of the problems preventing AI from being widely adopted. AI can win public trust considerably more quickly if the decision-making process is recordable.

Artificial intelligence can be made more transparent by utilising the blockchain. Every choice an AI makes can be recorded and analysed on a distributed ledger, data point by data point. Additionally, you can be confident that the data on a blockchain is tamper-proof from recording to analysis.

Managing and gaining access to the data market: This idea is closely related to better security. New use cases arise due to the distributed ledger’s capacity to store massive volumes of encrypted data and its management by artificial intelligence. The blockchain allows you to sell access to your data while securely holding it. As a result, markets for data, models, and AI develop.

Large amounts of data that can be helpful for AI processes are accessible to major players like Google, Facebook, and Amazon. Still, none of that data is available to other players. With a blockchain, entrepreneurs and smaller businesses may compete with digital behemoths by instantaneously accessing the same data source and even AI potential.

Reducing energy use to the maximum: Data mining is a technique that uses a lot of energy. One of the main problems in the current world is this, and Google has shown that machine learning can solve the problem. Using historical data from thousands of sensors within a data centre to train the DeepMind AI, Google cut the energy consumed to cool their data centres by 40%. A similar idea can be applied to mining, which will lower the cost of mining equipment.

Enhancing Smart Contracts: Hackers may be able to take advantage of specific technical weaknesses in the blockchain. This was recently demonstrated. Smart contracts need more intelligence. Yet. When criteria are met, they are designed to release and transfer funds automatically. On the blockchain, network consensus must be achieved to do it. Anyone can carefully and slowly read over every line of code in search of flaws because the source code for smart contracts is open to the public and can be scrutinised. AI aids in the validation of smart contracts and the foretelling of exploitable vulnerabilities.

What industries are utilizing the maximum of blockchain and artificial intelligence together?

All of the aforementioned advantages of blockchain and AI integration are hypothetical. Let’s now discuss some real-world examples. Several companies are already experimenting with combining blockchain technology and artificial intelligence in one project. Although it’s still too early to celebrate, the initial efforts seem promising.

Officially, Porsche is the first automaker to test the blockchain in moving objects. To incorporate blockchain technology in its brand-new sports automobile, it collaborated with the German startup XAIN. Using smartphones, drivers can log traffic information from connected vehicles on a blockchain. Owners will also be able to issue a car a temporary key and receive updates about who, where, and when accesses it. Not to mention the improved security and auditable, useable data for autonomous driving and preventive maintenance.

Several firms are using AI to forecast the stock market. Due to the highly speculative nature of the market, NeuroBot, Senno, and Augur are supplying traders and brokers with the cutting-edge tools they need to deal with market forecasts and forecasting.

Of course, we must also consider AI marketplaces, with SingularityNET in Amsterdam receiving the most attention. In exchange for additional AI services or cryptocurrencies, developers and AI suppliers can sell their hardware and software on this market. The availability of large-scale AI services, such as language processing, training datasets, and image and video processing, implies that smaller businesses and startups can benefit from these services. DeepBrain Chain and Numerai are outstanding examples of AI with blockchain in online marketplaces.

The blockchain is a natural partner for the future development of artificial intelligence, a trend that is here to stay. By fusing IoT, AI, and distributed ledgers, certain nations are working toward smart cities. Blockchain is required by AI for data management and protection, as well as to explain its operation to humans. Faster transaction verification, less energy use, and “smarter” smart contracts are all advantages of the blockchain. We’ll undoubtedly see more use cases combining blockchain and AI in the next year or two.