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AI and Blockchain Technology – Global Economy Game-Changer?

AI and Blockchain Technology – Global Economy Game-Changer?

AI and Blockchain Technology

AI and blockchain are proving to be a potent combination, improving nearly every industry in which they are used. From AI in drone management, food supply chain logistics, and healthcare record sharing to media royalties and financial security, blockchain and artificial intelligence combine to improve the world as we know it. Integrating AI and Blockchain has many implications, including security – AI and blockchain will provide a double layer of defense against cyber-attacks.

AI can effectively mine a large dataset to generate newer scenarios and discover patterns based on data behavior. Blockchain technology aids in the effective removal of bugs and fraudulent data sets. AI-generated classifiers and patterns can be validated on a decentralized blockchain infrastructure to ensure their authenticity. This is applicable to any customer-facing business, such as retail transactions or secure online gambling website. Data collected from customers via blockchain infrastructure can be used to create marketing automation via AI.

How Can AI Help Blockchain?

The combination of AI and blockchain results in possibly the most dependable technology-enabled decision-making system in the world, one that is virtually tamper-proof and provides solid insights and decisions. It has several advantages, including: 

  • Improved business data models
  • Globalized verification systems
  • Innovative audits and compliance systems
  • Smarter Finance
  • Transparent governance
  • Intelligent retail
  • Intelligent predictive analysis

Security Enhancements that AI can enable: Blockchain technology becomes safer with the implementation of AI by ensuring secure future application deployments. A good example is AI algorithms that increasingly decide whether financial transactions are fraudulent and should be blocked or investigated.

Efficiency: AI can assist in optimizing calculations to reduce miner load, resulting in lower network latency and faster transactions. AI enables blockchain technology to have a lower carbon footprint. The cost imposed on miners, as well as the energy expended, would be reduced if AI machines replaced the work done by miners. As blockchain data grows by the minute, AI’s data pruning algorithms can be applied to blockchain data to automatically prune data that is no longer needed for future use. AI can even introduce new decentralized learning systems, such as federated learning or new data-sharing techniques, which will greatly improve the system’s efficiency.

Trust: One of blockchain’s distinguishing features is its iron cast records. When combined with AI, users have clear records to follow the system’s thought process. This, in turn, increases bot trust, increasing machine-to-machine interaction and allowing them to share data and large-scale coordinate decisions.

Better Management: Human experts improve with practice over time when it comes to cracking codes. A machine learning-powered mining formula can eliminate the need for the human experience because it can almost wholly sharpen its skills if given the right coaching knowledge. As a result, AI also aids in the better management of blockchain systems.

Privacy and New Markets: Securing private data invariably leads to its sale, resulting in data markets/model markets. Markets benefit from simple, secure data sharing, which allows smaller players to gain a competitive advantage. Blockchain privacy can be increased by using “Homomorphic encryption” algorithms. Homomorphic algorithms enable operations to be performed directly on encrypted data.

Storage: Blockchains are ideal for storing highly sensitive, personal data, which can be added value and convenience when smartly processed with AI. Smart healthcare systems that use medical scans and records to make accurate diagnoses are an excellent example of this.

AI and Blockchain Applications – Intelligent Computing Power

You’d need a lot of processing power to run a blockchain with all of its encrypted data on a laptop. For example, the hashing algorithms used to mine Bitcoin blocks use a “brute force” approach, which entails systematically enumerating all possible candidates for the solution and checking whether each candidate satisfies the problem’s statement before concluding a transaction. AI allows the United States to move away from this and tackle tasks in a far more intelligent and cost-effective manner. Consider a machine learning-based algorithm that could practically polish its skills in real-time’ if given the right training data.

Creating a Variety of Data Sets

In contrast to computing-based projects, blockchain technology creates suburbanized, transparent networks that can be accessed by anyone, anywhere in the world, in the case of a public blockchain network. Making an API of APIs on the blockchain would allow A.I. agents to communicate with one another. As a result, various algorithms based on various knowledge sets may be designed.

Data Security

Through knowledge, AI receives data about the world and what is going on in it. Knowledge feeds AI, and AI will be able to continuously improve itself as a result. On the other hand, blockchain is essentially a technology that allows for encrypted data storage on a distributed ledger. It enables the creation of fully secured databases that can be accessed by parties who have been granted access.

For example, medical or financial information is far too sensitive to entrust to a single company and its algorithms. Storing this data on a blockchain, which an AI can access only with the permission and after going through the proper procedures, could provide us with enormous benefits such as personalized recommendations while safely storing our sensitive data.

Monetization of Data

Another turbulent innovation that could be accomplished by combining the two technologies is information validation. For large corporations like Facebook and Google, monetizing collected data is a huge source of revenue. Allowing others to decide how data is sold to generate profits for businesses shows that data is being weaponized against us. Blockchain enables the United States to cryptographically defend our knowledge and have it used in how we see work.

This also allows the United States of America to legitimize knowledge in person if we choose, without compromising our personal information. This is critical to comprehend in order to combat biased algorithms and create diverse data sets in the future.

The same holds true for AI programs that rely on our knowledge. In order for AI algorithms to learn and develop, AI networks will need to purchase data directly from their creators via data marketplaces. This will make the entire process far more honest than it is now, with no tech behemoths exploiting its users. A knowledge marketplace like this will also make AI available to smaller businesses. Developing and feeding AI is prohibitively expensive for businesses that do not generate their own knowledge.

Putting Faith in AI Decision Making

Thanks to blockchain technology, there are immutable records of all the data, variables, and processes used by AIs in their decision-making processes. This makes auditing the entire process much easier. All steps from data entry to conclusions can be observed using the appropriate blockchain programming, and the observing party can be confident that the data has not been tampered with. It fosters trust in the conclusions reached by AI programs. This is necessary because individuals and businesses will not begin using AI applications unless they understand how they work and what information they base their decisions on.

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