Blockchain and Artificial Intelligence (AI) are among the rare developments in technology that is poised to become so disruptive that they’ve become synonymous with innovation and the future and are gaining momentum.
Blockchain technology was created by an anonymous figure known as Satoshi Nakamoto and is the underlying technology behind the sensational Bitcoin. The Blockchain is a distributed ledger technology (DLT) that enables the storage of data securely and transparently.
Artificial Intelligence was first described by John McCarthy in 1956. This Artificial Intelligence (AI), is the ability of a machine/program to learn from its experiences, much like a conscious being does. Even though the technology is still in its nascent stages, an excellent example of the capabilities of current AI technology is the array of virtual assistants available like from Tech giants like Google, Amazon and Apple. Similar to the blockchain, AI is making waves in scores of industry sectors by helping augment existing technologies by increasing its efficiency.
Amalgamation of AI and Blockchain
- At first glance, blockchain and AI seem poles apart and they are. But recent developments in Big data has created a conducive environment for the amalgamation of these technologies.
- Big data analytics involves examining excessive amounts of data, often about customers, to unravel correlations between seemingly distinct data points that could provide insight into the data set. In retrospect, big data analytics has commonly been used by enterprises to boost customer acquisition and retention, introducing targeted advertising and even improve risk management. In simple terms, enterprises are looking to improve their profits by better understanding their customer base. But this data is often chaotic, vast and random.
- With both these technologies coming together can take the exploitation of data to new levels. At the same time, the integration of machine learning and AI into blockchain, and vice versa, can enhance blockchain’s underlying architecture and boost AI’s potential.
- Blockchain and its ledger can record all data and variables that go through a decision made under machine learning. AI can boost blockchain efficiency far better than humans, or even standard computing can.
- Unlike artificial intelligence based-projects, blockchain technology creates decentralized, transparent networks that can be accessed by anyone, around the world in public blockchain networks situation.
- The progress of AI is completely dependent on the input of data—our data. Through data, AI receives information about the world and things happening on it. Basically, data feeds AI, and through it, AI will be able to continuously improve itself.
- Data Monetization, Monetizing collected data is a huge revenue source for large companies, such as Facebook and Google. Blockchain allows us to cryptographically protect our data and have it used in the ways we see fit. This also lets us monetize data personally.
- As AI algorithms become smarter through learning, it will become increasingly difficult for data scientists to understand how these programs came to specific conclusions and decisions. This is because AI algorithms will be able to process incredibly large amounts of data and variables. However, we must continue to audit conclusions made by AI because we want to make sure they’re still reflecting reality.
- Through the use of blockchain technology, there are immutable records of all the data, variables, and processes used by AIs for their decision-making processes. This makes it far easier to audit the entire process.
- Blockchain users can also check if the data stored on the network has been tampered with, by simultaneously cross-checking cryptographic signature of the data across all nodes (computers) on the network. This ability to curtail any modifications makes Blockchain an ideal solution to store highly sensitive data .
The combination of blockchain technology and Artificial Intelligence is still a largely undiscovered Putting the two technologies together has the potential to use data in ways never before thought possible. Data is the key ingredient for the development and enhancement of AI algorithms, and blockchain secures this data, allows us to audit all intermediary steps AI takes to draw conclusions from the data and allows individuals to monetize their produced data.