By Arpit GautamOct 2020
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Artificial Intelligence And Blockchain: 3 Major Benefits of Combining These Two Mega-Trends

Artificial Intelligence & Blockchain are two trailblazing technologies that are being leveraged by enterprises & startups to maximize operational efficiencies while maintaining robust security of data.

Artificial Intelligence – Building machines & systems that can seamlessly replicate human intelligence while performing a series of tasks. The current lot of cutting-edge technologies that are effectively making AI a reality comprises Artificial Neural Networks, Deep Learning & Machine Learning.

Blockchain – It is a filing system that is used to store digital information securely. Blockchain employs encryption methods to secure data & store in a distributed ledger format across different nodes (computers). This results in robust databases that cannot be tampered with & only the person with access to such databases can change or update the data.

As of now, these technologies are being used for a limited number of cases. But a combination of these technologies certainly showcases a huge potential along with a multitude of use cases in the upcoming years.

3 Major Benefits of Combining AI & Blockchain

Let’s quickly understand 3 prominent ways in which AI & Blockchain can complement each other:

AI & Blockchain’s Encryption Can Seamlessly Work Together

There are 4 reasons why blockchain technology will witness a proliferation in the next few years:

  1. Encryption – Robust security that is virtually unbreakable.
  2. Transparency – Easy Data accessibility to those who have permissions.
  3. Decentralized – Data is seamlessly spread across multiple computers.
  4. Invariable – Easy data addition into databases which cannot be corrupted.

Hence, Blockchain technology is an ideal choice for storing sensitive data.

Now, add the smart processing power of Artificial Intelligence to the robust data security of Blockchain technology & you get an amazing system that can readily access data & perform tasks at blazing fast speeds.

Some future applications of the combination of Blockchain & AI Software Development include:

  1. Smart healthcare – Accurate diagnosis due to seamless access to secured medical records via Artificial Intelligence systems.
  2. Recommendation Engines – Personalized suggestions on Streaming, eCommerce, mCommerce & other platforms based on your user behavior.

Blockchain management can be streamlined with AI Solutions

Humans usually leverage computer systems to manage Blockchain systems. But after a certain period, due to fatigue & heavy workloads even humans make mistakes & these can prove to be very costly for large & small enterprises.

Computers on the other hand need some sort of manual inputs or pre-written programs without which they are a useless piece of equipment. Even if you leverage some programs to get the tasks done, working on blockchains requires tremendous processing power.

Developing programs that can be used by computers to access data from blockchains is cumbersome since the entire process would be tremendously complex.

Look at this real-world example – To mine blocks on the bitcoin blockchain, specific hashing algorithms are used. These algorithms are based on the brute force approach i.e. to verify a transaction, these complex algorithms try millions of character combinations which is not a very efficient way.

However, with AI technology, everything changes. AI doesn’t rely on cumbersome techniques like brute force but approaches each task sensibly and intelligently.

So if an AI-based algorithm is used to work on blockchains, then it would be much more beneficial since AI-powered solutions learn on a real-time basis & evolve to become robust & intelligent systems.

Tracking & understanding AI decisions is easier with Blockchain

Many times the decisions made or tasks carried out by AI are incomprehensible to the human mind. This is because AI can work on a multitude of systems & assess various variables. But that’s not all!

It also tries to learn which variables are important for the particular task that it is carrying out. 

Let’s understand this with a simple example – Some Enterprises are carrying out AI Software Development in a such a way that the algorithms made are being increasingly used in the banking sector i.e. to understand if a particular transaction is fraudulent, whether it should be blocked or investigated.

However, auditing these decisions in the early stages of AI adoption is crucial as there could be some accuracy-related issues. But where does Blockchain fit into this grand scheme of things? Simple!

If the decisions made by AI are recorded meticulously in Blockchains then no one would be able to tamper that data. Then software professionals & engineers can audit the tasks done by AI to rectify any issues & improve the AI algorithms.

These are 3 major benefits of combining Artificial Intelligence & Blockchain technologies.

ARSR is one of the prominent Blockchain Development Companies and also specializes in AI Software Development to help enterprises & startups to adopt cutting-edge technological solutions and improve productivity as well as operational efficiencies. 

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