Blockchain and artificial intelligence are two of the most global technological trends today. But they are two radically different trends.
SwissCognitive Guest Blogger: Melissa Robertson – “Blockchain and artificial intelligence: on the wave of hype”
Researchers are actively engaged in discussing the benefits of the combination of these technologies. The last statistic is that PwC predicts that AI will add $15.7 trillion to the global economy by 2030, resulting in a 14% increase in global GDP. Gartner predicts blockchain technology will add $3.1 trillion in business value by that same year.
What is blockchain?
Blockchain is a distributed, decentralized, immutable system that stores encrypted data. Artificial Intelligence is an engine or even a brain. It enables analysis and decision-making based on collected data.
Blockchain can be used in industries that need to process large amounts of data (online video), providing storage, research, and exchange of data. Cryptography ensures that all blockchain data is:
- be invariably written to the blockchain;
- verifiable concerning the privacy of the user and the information being processed;
- quickly disseminated due to the distributed nature of the blockchain.
Blockchain is a distributed registry that stores data as blocks. Each block contains information associated with the previous block in the chain. This data is protected by cryptography and cannot be altered even by the person who created it. Blockchain does not rely on a central authority to verify and validate new data but relies on a mathematical process called the consensus mechanism.
Blockchain can make artificial intelligence more consistent and understandable for humans. It allows you to track and understand why artificial intelligence made that decision during machine learning. Blockchain can record all the data and variables that artificial intelligence uses to create a machine learning decision.
What is artificial intelligence?
Artificial intelligence is the ability of computers to learn actions and tasks that previously required human intelligence. AI uses neural networks that mimic human intelligence and the human nervous system through machine learning. It allows artificial intelligence to improve over time and develop intelligent algorithms.
Artificial intelligence can analyze, classify, and predict various data sets. Machine learning is used to learn from the data provided, creating better models. Thus, the data sets provided by AI are extremely important and must be constantly updated to ensure the effectiveness of artificial intelligence models.
Today, artificial intelligence refers to three areas: machine learning, deep learning, and artificial neural networks. Each of these spheres is present in a person’s life. We use computers, phones, and software every day. It’s impossible to imagine our lives without artificial intelligence.
How Artificial Intelligence and Blockchain are Connected?
Blockchain is an innovative digital information storage system storing data in an encrypted, distributed ledger format. In work, the data is encrypted and distributed across multiple computers, which creates tamper-proof. It is a secure database that can only be read and updated by those with permission.
There are a few examples on the web today of blockchain and artificial intelligence being interconnected. Academics and scientists conducted the study. But we see the two concepts working well together. There are examples of them working together:
- Artificial Intelligence provides an opportunity to move away from the standard algorithm and solve problems more intelligently and efficiently. It can polish its skills in real-time with enough data, which means improved hashing efficiency.
- Blockchain can store data in a single format thanks to hash functions. It will standardize the data and significantly reduce its size because the blockchain will convert it into a string that exceeds a given length.
- AI can use algorithms to handle data in a cryptographically closed form, guaranteeing that it is permanently encrypted. It would make the data usable without putting human privacy at risk since no one would have access to it.
- Bitcoin is a perfect example of a power-hungry blockchain. The hashing algorithms in the Bitcoin blockchain require significant computing power to verify each character set before finding the correct one to validate the transaction.
- Introducing artificial intelligence will help move away from the brute-force analysis used by conventional computers and allow the blockchain to solve problems more intelligently, efficiently, and cost-effectively. A machine-learning-based data mining algorithm can learn decryption quickly.
Today’s computers are extremely fast, but they also require a constant supply of data and instructions, without which it is impossible to process information or perform tasks. Therefore, the blockchain used on standard computers requires significant computing power because of the encryption processes.
Secure data monetization could be the result of combining blockchain and artificial intelligence. Monetization of collected is a source of revenue for many companies. Among the big and famous ones are Facebook and Google resources.
Data is always in the public domain. Any information can be used against a person. So the data we store can be used against us. Blockchain is a secure system to protect data. It is based on a cryptographic key that protects the information. It also allows us to monetize the data as we see fit. Personal information will not go out of bounds. This makes it possible to fight biased algorithms and create different data sets in the future.
This makes it easier to understand how artificial intelligence solves a problem.
It also allows people to check whether the data is valid. Combining the benefits of AI with the immutability of blockchain could be a significant step toward transparency in algorithmic decision-making.
Artificial intelligence is used to create template projects. Blockchain technology is very different from the usual model. Blockchain creates a network with open access from anywhere in the world. Today, blockchain is the decentralized niche that drives all cryptocurrencies.
But the technology is also used across industries to enable decentralization. Some specialized projects focus on using blockchain technology to facilitate the wider dissemination of data. These projects are becoming the basis for decentralized artificial intelligence.
Both blockchain and artificial intelligence are technologies that are groundbreaking in their respective fields. However, when combined, these two technologies have the potential to revolutionize the industry. This connection remains to be explored and incorporated into some work processes. The collaboration of the two progressive technologies has the potential to optimize work processes.
About the Author:
Melissa Robertson is a freelance writer who believes that with well-chosen words, you can convey the right idea to a wide audience. Melissa is attentive to details, responsible, and ready to develop in the profession.