While Blockchain and Artificial Intelligence have been around for some time now, they haven’t reached their full potential yet. In fact, only recently, they have started working together to transform various industries such as healthcare, transportation, finance and supply chain.
Blockchain and AI are the new digital revolution
Blockchain and AI have been claimed to be the ‘new digital revolution’, but what does this mean?
Blockchain technology is a decentralised distributed ledger that can be used to prove record of transactions without central authority. As no single person or group controls the information stored on it. That fact makes blockchain ideal for use in various industries where the high level of trust is very important.
Artificial Intelligence (AI) is a system that demonstrates human-like reasoning and learning capabilities where data is entered by humans. This allows machines to learn through experience rather than being programmed by programmers or engineers beforehand. AI can help businesses make faster decisions while reducing costs associated with manual error correction or delay caused by human factors.
By combining them together, the output we get is that Blockchain technology can be used in order to protect sensitive data while AI is used to analyse this data and determine its value.
Collaboration of Blockchain and AI – what it means to businesses
As it was mentioned above, the combination of blockchain and AI can help create more efficient systems by allowing companies to function more autonomously. However, there are some challenges and questions that need to be solved before they become truly autonomous or decentralised.
Let’s review a few of them:
- For example, companies need access to high-quality training data in order to develop machine learning models. It cannot be done without additional resources that might not be included in a business plan and budget.
- Security and trust are two of the key factors that make up a company’s success, so much so that companies have started to dedicate entire departments just for managing these measures. However, when we talk about security aspects in blockchain, we don’t mean that blockchain is being insecure– just the other way round. We mean that decision makers can have a lack of education, so less trust, about how secure the technology is, and concerns about AI and Blockchain working together.
- Become decentralised or stay centralised – Okay, decentralisation of services is great but with it comes the following questions: Are my customers and stakeholders capable of handling decentralisation? Does my business really need it? Considering AI can be incredibly useful for businesses both centralised and decentralised.
The future of blockchain and AI looks promising
As the conversation around blockchain and AI continues heating up, it’s important that industry stakeholders collaborate to eliminate potential barriers to innovation.
Blockchain and AI share common challenges preventing them from reaching their full potential; With the fact that blockchain applications can access high-quality data for machine learning, it becomes important for AI.
To execute that, blockchain applications will need to collaborate with external data providers. However, the complexity of blockchain technology makes it difficult for traditional data providers to use blockchain applications to share information in a way that meets their risk mitigation and business model needs.
With some cases, this integration of blockchain and AI can lead to a future where sensitive data that is analysed using AI won’t have to be stored in a centralised location, but rather distributed over multiple nodes. If a problem arises with the chain, users can check the metadata or any other records that exist on the chain itself to monitor whether there has been any manipulation.
Are your stakeholders ready for such digital transformation?
A million-dollar question.
The combination of emerging technologies
From autonomous vehicles to self-learning software, the technology is changing how we live our lives – collaboration creates new opportunities.
For example, by working together, Artificial Intelligence, Blockchain and Internet of Things (IoT) will be able to power future applications, and we will have an opportunity to change how people interact with these technologies.
A real-life use case will look like this – IoT will manage devices and gather data, blockchain will manage transactions, provide transparency and security, and AI will manage that data.
Conclusion
The combination of blockchain and AI can result in a brighter future by making both systems more transparent, scalable and efficient.
It will become increasingly important for businesses to use both AI and blockchain technology as they evolve. However, there is still work to be done before these technologies are developed to their maximum potential. We need to ensure that these new technologies can exist in a world where all members of society benefit from their existence.
Olga Bubnova, Founder & CEO at B.gain
Expert in Brand Management, Marketing and Communications for Tech.
I write about tech in simple terms.