Over the past decade, most businesses have implemented and experienced the benefits of these technologies. No wonder, the market for these technologies is booming year on year.
The global blockchain market is expected to grow at an impressive CAGR of 67.3 percent during 2020–25. Likewise, the global AI market valued at USD 21.46 billion in 2018 is expected to expand at a CAGR of 36.62 percent between 2019 and 2025.
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But did you know, these individually-disruptive technologies make a synergistic combination? The convergence of the AI and blockchain unlocks a whole new level of technological capabilities and features, giving businesses an edge over the competition and positioning them as industry pioneers.
That explains why AI-blockchain combination is gaining momentum across all industry segments. Today, healthcare firms, financial institutions, food supply chain firms, construction firms, and automakers among others are leveraging this powerful pair to climb on the ladder of innovation and drive profits.
Read on to know how you can use the integration of these two technologies to your advantage.
Access and Manage Your Data Effectively
A distributed ledger has the capacity to store large volumes of encrypted data. On the other hand, AI can manage this enormous data effectively. This allows firms to store sensitive data in the blockchain that can feed AI processes while ensuring data security.
Data monetization is yet another disruptive innovation made possible through the combination of these two technologies. Monetizing this huge data is a revenue source for dominant enterprises like Facebook and Google.
But small firms often do not generate their own data. With blockchain technology, this global database is cryptographically protected and available to all members in the network.
This way small businesses and startups can access the same pool of data and use it in ways they see fit. This allows them to monetize data personally without the risk of it being compromised. Plus, developing and feeding AI is incredibly costly for SMEs. The decentralized data marketplace is open for small businesses too, allowing them to realize the full potential of AI while saving costs.
Finally, AI can boost the efficiency of blockchain by improving the way we work with data. All blockchain transactions are validated by data miners who spend a lot of computational time and energy in trying various combinations of characters to guess the right one and get rewarded. However, only the first one to find the combination is rewarded. This wastes a lot of energy.
Trained AI algorithms can guess the code in an intelligent way, thereby speeding up the process of validation and reducing the cost.
Google was one of the early adopters of this technology. The tech giant has been able to reduce its energy consumption by 40 percent by training the DeepMind AI on the historical data from multiple sensors within a data center.
Another example is Porsche, the automobile manufacturer, that was quick in partnering with German startup XAIN to implement blockchain in their sports car, Carrera. The firm outsourced the job to an expert app development company appdevelopmentcost.com to build an app that records and tracks traffic data. The app also allows the car owner to grant temporary access to the car and helps them track who’s accessed it along with the time and place of access. Also, the usable data available to the car owner smoothens the process of predictive maintenance and autonomous driving.
Arrest Data Breach Proactively and Improve Data Security
Thanks to the inherent encryption, sensitive data in a blockchain is well-protected and tamper-proof. However, though the blockchain is secure at its base, the additional layers and applications are at risk of data breaches.
In such cases, AI can work with encrypted information without exposing it. The machine learning algorithm can help improve the deployment of blockchain applications and predict data breaches, enhancing the overall security of the system.
BotChain, a platform for universal registration, audit, evaluation, and coordination of AI agents for autonomous systems. BotChain is bringing its blockchain record-keeping technology to bots, thereby enhancing the security and organization for various industry segments, including healthcare.
Further, AI can enhance the security of smart contracts. Yes, you’ve heard it right! Smart contracts may seem smart but they definitely aren’t intelligent (there’s a difference!). These contracts are programmed to release funds automatically under certain conditions and the code is public.
So, hackers can easily access the code in search of loopholes, thereby making these contracts highly unsafe. AI can help verify smart contracts and predict such vulnerabilities, thereby transforming them into ‘intelligent’ contracts.
AI Blockchain is a digital ledger that employs AI to govern the chain. The blockchain not just acts as a cybersecurity tool but also works as a platform for smart contracts, due diligence, and loyalty reward tokens.
Logically Explain the Actions of AI
One of the biggest obstacles in a wider deployment of AI applications is that no one understands how machines make decisions. The inability to explain the way AI works contributes to a lack of trust and delay in its broader adoption.
Though humans create and train artificial neural networks and algorithms, the best of the developers aren’t able to predict how an AI-system thinks. Blockchain can simplify these complex AI systems that are fairly unexplored for human intelligence.
By applying blockchain technology to AI, businesses can add an element of transparency to the decision-making process. The distributed ledger records and stores every decision made, making it readily available for analysis. The point of enhanced security is further strengthened as the encrypted information in a blockchain cannot be tampered with.
Here, I am reminded of firms like Chainhaus that are using this tech combination to support businesses in various domains in capital raising, app development, and other areas. The New York-based enterprise is a blockchain and AI advisory, education, and marketing firm that guides big enterprises like PwC, Citi, and Deloitte.
The convergence of AI and blockchain is still in the nascent stage and businesses are yet to realize its full potential. However, the powerful duo is changing the business world for good. The two technologies complement each other, offering businesses innovative ways to improve efficiency, scalability, security, and data management.
The data shared above is proof that the AI-blockchain companionship is more than just a hype or an experiment. This combination is here to stay and disrupt the business world.
Companies implementing this duo stand to gain a clear advantage over their competitors. In the coming years, we can expect to see more and more enterprises and industries leveraging this potent tech combination.