Original article was published by Ishita Bora on Artificial Intelligence on Medium
When Blockchain Meets Artificial Intelligence
Blockchain and Artificial Intelligence (AI) are two of the hottest technology trends right now. Even though the two technologies have highly different developing parties and applications, researchers have been discussing and exploring their combination.
Blockchain is a distributed, decentralized, and immutable ledger used to store encrypted data. On the other hand, AI is the engine or the “brain” that will enable analytics and decision making from the data collected.
Each technology has its own individual degree of complexity, but both AI and blockchain are in situations where they can benefit from each other, and help one another.
AI and Blockchain are proving to be quite a powerful combination, improving virtually every industry in which they are implemented. These technologies can be combined to upgrade everything from food supply chain logistics and healthcare record sharing to media royalties and financial security.
AI can effectively mine through a huge dataset and create newer scenarios and discover patterns based on data behavior. Blockchain helps to effectively remove bugs and fraudulent data sets. New classifiers and patterns created by AI can be verified on decentralized blockchain infrastructure and verify their authenticity. This can be used in any consumer-facing business, such as retail transactions. Data acquired from the customers through blockchain infrastructure can be used to create marketing automation through AI.
In simple terms, we can say that AI development and evolution can significantly improve blockchain technology and the crypto industry, from security to trading. From performing simple commands on smartphones using Alexa or Siri to high-end technical operations in big tech firms, “ease” is a necessity in the modern human experience.
The 21st century has marked a rapid advancement of technology in every aspect of human life and interactions. Despite being around for many decades, the replication of human intelligence in machines, AI has now become popularized.
With many tech companies rushing to adopt the technology, the market size is expected to grow to $126 billion in 2025.
Additionally, blockchain can also make AI more coherent and understandable, and we can trace and determine why decisions are made in machine learning.
Detailed Explanation of Blockchain and Artificial Intelligence
Blockchain uses cryptography to ensure that data, transactions, and identities can be:
- Incorruptibly, securely and irreversibly recorded
- Verified as trustworthy while remaining private — participants can verify the veracity of data without needing to look at the data, and only see what they are authorized to see
- Easily shared so that everyone in a blockchain network has an identical copy of the entire ledger, including updates as they occur
Artificial Intelligence involves using computers to do things that require human intelligence. AI models can be used to analyze, classify, and make predictions from data. Unlike traditional software, AI models can also improve (learn) over time as they are fed new data.
Data is central to AI effectiveness, and blockchain enables collaborative and secure data sharing. Blockchain can ensure the trustworthiness of data and can enable more data to be securely shared before AI extracts insights from it.
In this new world, AI will create and trade digital investment assets over high-speed private blockchains. Institutional investors will buy these assets because they trust the ability of the issuing firms.