Integrating AI and blockchain offers better security against cyberattacks while building better transparency. Furthermore, AI can enable organizations to sift through massive datasets and create new scenarios and patterns based on the behaviour of data. On the other hand, blockchain helps remove errors and fraudulent data sets. In the end, the new classifiers and patterns created by AI can be verified using decentralized blockchain infrastructure, which can also be used to verify the authenticity of data. This can be useful in consumer-facing businesses like retail transactions. Data gathered from the customers through blockchain infrastructure can create marketing automation via AI.
How AI can add to the blockchain
With Artificial intelligence, blockchain technology will become much safer and secure for proper future deployments. AI algorithms will become increasingly useful in blocking fraudulent transactions in the financial industry, which increases the security of these transactions. Currently, experts are building algorithms that will enable AI to work on encrypted data or information without exposing it. Furthermore, machine learning will help deploy blockchain apps and predict possible breaches.
AI can help optimize calculations in the blockchain's miner load. This results in less network latency and increases the speed of transactions. It also reduces the carbon footprint of blockchain technology because energy spent would be less if AI machines replaced miners' work.
Blockchain, in conjunction with AI, means that users will have clear records that conform to the system's thinking process. AI helps bots trust each other and increases machine-to-machine interaction. This allows bots to share data and coordinate decisions.
Although human experts get better at cracking codes over time, machine learning-powered mining formula can eliminate the need for the human experience because it can learn how to crack codes if the correct data is fed with the right coaching knowledge. Furthermore, AI helps manage blockchain systems better than humans and can learn this with time if the correct data is provided. This means that management can be improved in time without necessarily investing a lot in human experts.
Artificial intelligence, automation and blockchain can bring new value to the business processes and removes friction. It adds speed and increases efficiency. For example, AI models embedded in smart contracts and executed on a blockchain can recommend expired products to be recalled, transactions to be executed, and other actions.
Blockchain is great for storing highly sensitive and personal data. When such data is processed with AI, it can add value and convenience. One such example is healthcare systems that make accurate diagnoses based on medical scans and records.
Accessing and managing the data market
Since distributed ledger can store vast amounts of encrypted data and AI can manage it effectively, new use cases of AI and blockchain emerge. Users can store their personal data in the blockchain and sell access to the same data. Consequently, data, model and AI marketplaces emerge. Big players like Amazon, Google and Facebook have access to large data volumes and AI processes can be beneficial to them. Smaller companies can access the same pool of information and even compete with tech giants from the marketplace.