Artificial Intelligence models will soon be combined with Blockchain frameworks to enable automated decision making and a greater scope for creating intelligent financial products. Blockchain provides secure storage of digital monetary assets, while AI allows seamless sharing of data and insights from these networks. The cyber threat landscape is constantly evolving, which means that enterprises are adopting these merger technology trends.
Today, we’ll look at how Artificial Intelligence and Blockchain will dominate the technology industry, their various use-cases, and how companies can succeed in staying protected from multiple threats by taking advantage of these trends. Enterprises over public blockchains favor private blockchain networks, and AI models can classify, analyze, and gain insights from financial data. Together, blockchain AI will form a collaborative learning model that assures the trustworthiness of data being shared, ensures its integrity, and makes it convenient for users to extract and share insights, thus ensuring that transactions and the information associated with them are thoroughly validated. Microsoft researchers are working towards making considerable advancements in the Blockchain AI domain to make their innovations more accessible to everyday devices, apps, and IoT networks.
Benefits of Integrating AI and Blockchain Technologies
Industry leaders in healthcare, finance, government, etc., such as Synapse AI, Ocean Protocol, Enigma, and Numerai, are exploring combining AI and Blockchain to disrupt the technological landscape. Many businesses are already experiencing the benefits of enhanced scalability, traceability, increased efficiency, lower running costs, and smoother operations by simply blending these two tech trends.
- Greater Transparency and Increased Security
Blockchain is a type of distributed ledger that offers users more transparency on their digital transactions. Changing a single record would mean making changes to subsequent documents, and this is what makes Blockchain technology so powerful. Only a shared copy of the ledger is distributed to participants in the network. When Artificial Intelligence is combined with blockchain, it results in the creation of “smart contracts.”Smart contracts contain code that executes automatically to simplify business transactions and ensure that pre-defined criteria for agreements are met before crypto trades take place. They are used for making intelligent digital financial arrangements such as insurance policies, legal contracts, crowdfunding agreements and are considered a reliable medium for the exchange of Ethereum. Essentially, by leveraging AI and blockchain, smart contracts take out the middle-men for forming agreements between parties and make trades a lot more seamless.
- Improved Financial Audits
Companies like Walmart enter vast volumes of transaction data into AI systems for review and processing. Blockchain helps in analyzing this information on a datapoint-to-datapoint basis which yields a high level of accuracy. When records are processed in the correct sequence, there is greater confidence in their integrity, reliability, and users don’t have to worry about the possibility of tampering. Blockchains are used in the financial decision-making process by companies and help in the investigation of various transactions, thus preventing duplication, identity thefts, and fraud.
- Efficient Mining
Blockchains consume vast amounts of computing power for managing blocks on “stupid” computers and use hashing algorithms to mine data. When AI is used in conjunction with Bitcoin blockchains, it prevents the need for using ‘brute force,’ approaches for figuring out the combination of characters until one fits in and authenticates the transaction. AI adds intelligent processing for code-breaking blocks and can instantaneously encrypt or decrypt blocks by being fed the proper training datasets.
- Reduce Cost
Businesses focus on reducing costs while sustaining operations in different industry verticals. Blockchain eliminates the need for intermediaries for drafting contractual agreements while AI automates and speeds up data processing. Together these two technological trends reduce the need for paper-based document storage, and since everyone has shared access to records, it makes it easier to view and manage them. There are no discrepancies in these records, and all the information shared across gets fact-checked and validated.
How Blockchain and AI Augment Each other
Blockchain is a technology used for protecting financial data from cyber thefts, and AI helps services make intelligent decisions when it comes to processing requests and ensuring data security. Many industries use a blockchain because of its secure infrastructure and how well it intertwines with machine learning algorithms to process huge volumes of transactions.
AI and machine learning algorithms converging with blockchain would mean businesses are enjoying more excellent encryption, better performance, and precise decision-making. Here is a list of key applications offered by AI and blockchain.
- Increased Computing Power
AI helps in boosting computing resources and power when converging with Blockchain frameworks. Blockchain provides the necessary infrastructure, but organizations require enormous computing power to manage data flow in real-time and access records.
- Improved Credibility
Businesses that are hopping onto the convergence of Blockchain and AI are enjoying improved credibility amongst consumers. Brands investing vast amounts into these merger technologies find that they are experiencing greater returns on investments.
- Reduced Hacking
Blockchain technology offers tremendous benefits for user privacy, and by converging with AI, it helps prevent illicit digital activities. AI algorithms benefit from getting trained using large datasets and use blockchain to encrypt and optimize business frameworks, thus making transactions or exchanges very secure
