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Merging Blockchain and AI, Why Do You Need It in the Near Future?

Merging Blockchain and AI, Why Do You Need It in the Near Future?
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    July 30, 2023 Last Updated: July 31, 2023

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Industry insiders think that merging blockchain and AI technology would benefit any organization’s development. Where blockchain technology can discover discrepant records and remove errors, Artificial Intelligence (AI) allows organizations to mine and manage enormous datasets.

Therefore, by combining blockchain technology and AI, one can create a model of systematic decision-making that is nearly impossible to beat.

Really?

Needless to say, both Blockchain and AI have proven their worth in the past. If we go with a report from future market insights, the global blockchain AI market can touch a whopping 440 million USD mark in 2023. Moreover, this market is expected to reach 3,536.2 million USD by 2032 growing at a CAGR of 22.9% (2023-2033).

But does it mean AI and Blockchain technology can prove to be a game changer?

Well, let’s find out the same through this blog.

Getting Into the Nitty-Gritty of Merging Blockchain & AI

Blockchain

In simple words, blockchain is a digital and updated record of who possesses what. A “block” containing transaction-related data, including the time, date, amount, and participants, is encrypted and connected to other blocks to build a chain.

Needless to say, one of the things that makes Bitcoin and other cryptocurrencies unique is that there is no single central authority regulating the blockchain. In a nutshell, when it comes to blockchain, everyone has access to the same data, ensuring transparency and ongoing reconciliation.

Now since the data is dispersed among several machines, a hacker cannot attack a centralized version of it. This means it is no longer necessary to have a reliable third party authenticate information about you and a transaction you want to carry out.

Also ReadPractical Use Cases: 7 Ways To Leverage Blockchain For Business

How Blockchain Can Add Value to AI?

AI can be enhanced using blockchain to add controls for AI models. Blockchain creates a tamper-evident audit record for every step of controlling the AI model when done through a multi-user workflow interface, including:

  • All stakeholders’ identities can be tracked by using the blockchain as a certificate authority.
  • A permanent record of an AI model’s original intent
  • Keep track of the AI model’s continuing governance, reviews, and ratings.
  • Providing a single source of truth for all algorithms and training data in the AI model.
  • Creating a persistent log of experiments for MLOps and AI engineers.
  • Providing customer trust logos so that models’ blockchain histories can be quickly verified 
  • To serve as an AI model’s portable permanent memory bank.

AI (Artificial Intelligence)

Artificial Intelligence is a broad field of computer science whose objective is to build intelligent computers that are capable of carrying out tasks that traditionally require human intelligence. While there are many different approaches to AI, it is an interdisciplinary discipline, and recent developments in machine learning and deep learning in particular are bringing a revolution in the world of technology.

Machines equipped with AI are able to mimic or even outperform human brain functions. Whether we take an example of generative AI tools like ChatGPT or self-driving car technology from Tesla, AI is quickly becoming a part of daily life. One of the reasons why businesses are investing in these technologies.

How AI Can Add Value to Blockchain?

The integration of AI and blockchain results in possibly the most trustworthy technology-enabled decision-making system that has been ever created, one that is essentially tamper-proof and offers dependable insights and conclusions. It has various advantages, including: 

  • Enhanced commercial data models 
  • Internationalized verification methods 
  • Creative systems for audits and compliance 
  • Financial prudence 
  • Transparent leadership 
  • Adaptive retail 
  • Smart predictive analysis
  • Rights to a digital intellectual property

Ai & blockchain development services

Merging Blockchain & AI - A Promising Future or Just a Hype

Undoubtedly, Blockchain and AI are two of the most revolutionary technologies of this era., Despite the fact that they both have the capacity to profoundly alter the course of events only a few people are aware that they can be much stronger when combined. Let’s look at some of the reasons why firms are looking forward to combining blockchain and AI.

Benefits of Merging Ai & Blockchain

1Unmatched Security

Enhanced security is one of the key advantages of merging AI and blockchain. Businesses may defend their data from threats by utilizing blockchain’s secure, distributed ledger and AI’s data-driven insights. While still gaining the advantages of both technologies, this combination can assist organizations in maintaining the security and safety of their data like never before.

2Enhanced Efficiency

Using blockchain and AI together can improve productivity in a variety of ways. Blockchain, for instance, can be used to store data that AI can utilize to learn from and make predictions from. Additionally, blockchain transactions can be verified using AI without the need for human involvement.

Additionally, cost savings can be achieved by fusing blockchain with AI. For instance, firms can use AI to automate operations and lessen the need for manual labor. Additionally, organizations can save storage expenses by employing blockchain to store data. Overall, automating procedures and storing data with blockchain and AI can save both time and money.

3More Flexibility

Implementing blockchain and AI together can give firms more flexibility in how they run their operations. While AI can be used to evaluate the data and make predictions or recommendations, blockchain offers a secure and decentralized mechanism to store data and execute transactions seamlessly. So a combination of these two emerging technologies can introduce more flexibility in businesses.

Let’s take the case of a business wishing to introduce a new product. Now in order to generate a custom token that can be used to finance the creation of the product, they can first use blockchain to collect data from AI about client requirements and preferences. The company can then raise the money required to launch the product by selling this token on a decentralized exchange.

Additionally, blockchain-based data regarding client requirements and preferences allows the business to continue to iterate the product based on user input, guaranteeing that it satisfies their needs.

In this manner, a more adaptable and responsive business environment can be produced by combining AI and blockchain.

4Greater Scalability

It is no secret that scalability problems have plagued blockchain technology. This is one of the key arguments against it that some people make. However, fusing blockchain with AI might be revolutionary.

In a number of ways, AI can help blockchain become more scalable. By eliminating the requirement for human verification, for instance, it may speed up transactions. AI can also be used to detect and warn of possibly fraudulent blockchain activities.

These two cutting-edge technologies can be combined by businesses to produce a blockchain platform that is more effective and scalable. In the world of Internet transactions, this may assist to usher in a new era of trust and openness.

5Superior Data Quality

The quality of the data is crucial. Data is only as useful as it is accurate and trustworthy, after all. For this reason, merging blockchain and AI is effective. These two technologies work well together to improve data quality in a variety of ways. 

Data can be improved and made more accurate with the use of AI which is particularly beneficial for big data sets. On the other hand, because each block in a blockchain is connected to the one before it, it can offer a safe and decentralized method of data storage.

So by using AI for cleaning data and blockchain to store it securely, one can easily ensure that their data is accurate and holds solid reliability.

6Increased Transparence

Together, blockchain and AI have the potential to improve security and transparency. Blockchain, for instance, can support the assurance of correct and unchangeable data. Then, by analyzing this data, AI can find patterns or insights that would otherwise go undetected. 

Organizations may better analyze their data and make more informed decisions by merging the two technologies.

Also Read-How AI and Blockchain Benefits Supply Chain ?

How Blockchain AI Convergence Can Affect Various Sectors ?

Blockchain technology and AI have countless potential uses. Here are just a few illustrations of how these innovative technologies might be applied to transform multiple sectors and alter the way we live.

  • Healthcare

AI can boost nearly every area of healthcare, from exposing treatment insights and supporting user demands to finding insights from patient data and showing patterns. Firms can come on a single platform to improve care while preserving patient privacy by keeping and utilizing their data as well as electronic health records on the blockchain.

  • Supply Chain

Blockchain & AI are revolutionizing supply chains across industries and opening up new opportunities by digitizing a process that was mostly paper-based, making the data trustworthy and shareable, and adding intelligence and automation to perform transactions. For instance, a company can monitor data on carbon emissions at the component or product level, thus improving the accuracy and sophistication of decarbonization operations.

  • Financial Services

Through the creation of trust, the elimination of friction in multiparty transactions, and an increase in transaction speed, AI & blockchain are revolutionizing the financial services sector in a number of ways. Think of the borrowing procedure where applicants give permission for access to personal data kept on a blockchain. Needless to say, faster closings and higher customer satisfaction are facilitated by processes that evaluate applications automatically and trustfully.

  • Life Sciences

Blockchain and AI have proven to be a boon for the pharmaceutical industry as these technologies can add visibility and traceability to the drug supply chain while dramatically increasing the success rate of clinical trials. The amalgamation of advanced data analysis with a decentralized framework for clinical trials opens doors for data integrity, transparency, patient tracking, consent management, automation of trial participation, and data collection.

Real-Life Examples of AI and Blockchain

  • CertiK

CertiK offers specific tools driven by AI technology and formal verification in order to secure blockchain, smart contracts, and Web3 apps, The CertiK technology product suite aids in identifying security issues, tracking data insights, and visualizing the flow of cryptocurrency funds.

  • Core Scientific

Core Scientific upgrades a company’s physical infrastructure, servers, and software by integrating customized blockchain and AI technology with existing business networks. 

The Core Scientific facilities, which exist in five states in the United States, are made for the long-term mining of digital assets and maximizing hash rate. They make sure that company-controlled data centers and blockchain & AI infrastructures operate at their maximum efficiency. This will help them save time and energy at all costs. It is so because AI and blockchain consume a significant amount of computer processing and power.

  • Token Metrics

Token Metrics is a platform that employs AI to examine cryptocurrency trends for individualized investment needs. To assist users in making investment decisions, the system examines the data of over 6,000 cryptocurrencies and NFT projects and derives market insights. Companies including Coinbase, Amazon, and Facebook have adopted Token Metrics.

  • Blackbird.AI

Blackbird.AI utilizes AI and blockchain to analyze the news’s veracity in the communications and information sectors. The company uses AI to detect network polarization or bot activity and categorize content based on these and other industry credibility indicators to prevent disinformation. The verified data produced by AI and crowdsourced reports is irrefutably recorded in the Blackbird.AI blockchain, which serves as a ledger.

Hire Blocktunix To Develop Amazing Solutions With Blockchain and AI

The idea of fusing these two technologies is still in its infancy when it comes to the confluence of blockchain and artificial intelligence. As a result, we must still be cautious before we fully grasp the opportunities this integration presents.

One of the best ways to make this integration a success is to go with a reputed blockchain development company. With the help of our global platform of AI & blockchain development services across the world, Blocktunix helps its clients fully utilize the most recent technology and deliver a superior return on investment. Then why not move ahead and sign a deal for a better future?

Artificial Intelligence and Blockchain

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