How Blockchain and A.I can Work Together

Blockchain and Artificial Intelligence (AI) are two of the most transformative technologies of our time. Individually, they have the potential to revolutionize industries, but when combined, they can offer even more compelling use cases and solutions.

Here’s a detailed look at how these two technologies can work in tandem.

Defining Blockchain and AI

• Blockchain: A shared, immutable ledger provides an immediate, transparent exchange of encrypted data to multiple parties as they initiate and complete transactions. A blockchain network can track various activities like orders, payments, accounts, and production. Because all permissioned members share a single view of the truth, it instills confidence and trust in their transactions with other businesses, leading to new efficiencies and opportunities.
• AI: Artificial Intelligence leverages computers and data to mimic the problem-solving and decision-making capabilities of the human mind. It includes sub-fields like machine learning and deep learning, which use AI algorithms trained on data to make predictions or classifications. Over time, these algorithms get smarter. The benefits of AI encompass the automation of repetitive tasks, improved decision-making, and enhanced customer experience.

Combined Values of Blockchain and AI

• Authenticity: Blockchain’s digital record provides insights into the framework behind AI and the provenance of the data it uses. This addresses the challenge of explainable AI, enhancing trust in data integrity and AI’s recommendations. Using blockchain to store and distribute AI models provides an audit trail, and when paired, blockchain and AI can enhance data security.
• Augmentation: AI can rapidly read, understand, and correlate data, bringing a new level of intelligence to blockchain-based business networks. Blockchain helps AI scale by providing access to vast amounts of internal and external data to an organization. This collaboration results in more actionable insights, better data usage and model sharing, and a trustworthy and transparent data economy.
• Automation: The combination of AI, automation, and blockchain can add value to multi-party business processes by removing friction, increasing speed, and enhancing efficiency. For instance, AI models in smart contracts on a blockchain can recommend product recalls, execute transactions based on set thresholds, resolve disputes, and even select sustainable shipping methods.

Use Cases Across Industries

• Healthcare: AI can surface treatment insights, support user needs, and identify patterns from patient data. With patient data on blockchain, organizations can collaborate to improve care while safeguarding patient privacy.
• Life Sciences: In the pharmaceutical sector, blockchain and AI can enhance visibility in the drug supply chain and significantly improve clinical trial success rates. This combination ensures data integrity, transparency, patient tracking, and consent management and automates trial participation and data collection.
• Financial Services: These technologies transform the financial sector by enabling trust, removing friction from multi-party transactions, and accelerating transaction speeds.
• Supply Chain: By digitizing processes, making data shareable and trustworthy, and adding intelligence and automation, AI and blockchain are revolutionizing supply chains across various industries.

Companies Leveraging Blockchain and AI

• CertiK: Offers AI-powered tools and formal verification to secure blockchain, smart contract, and Web3 applications.
• Core Scientific: Integrates personalized blockchain and AI infrastructure with current business networks, ensuring optimal efficiency.
• Token Metrics: Uses AI to analyze cryptocurrency trends for personal investment purposes, scanning data of over 6,000 crypto and NFT projects.
• AI BlockChain: Provides a digital asset cloud platform built on blockchain and AI, ensuring secure platforms and supporting various operations like supply chain and finance.
• Bext360: Uses AI and blockchain to enhance supply chain transparency and efficiency in industries like coffee, timber, and seafood.

Challenges and Solutions with AI and Blockchain

1. The Problem with Artificial Intelligence: Artificial Intelligence (AI) can simulate human reasoning and quickly react to many inputs. However, its decision-making process is often not transparent due to the complexity of machine learning models, such as deep neural networks. This lack of “explainability” can lead to trust and ethical issues.

2. How Blockchain Can Improve AI: Blockchain, with its immutable, transparent digital records and decentralized data storage, can provide insights into the typically centralized and opaque AI. Here’s how:

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• Trust: AI faces challenges in accountability, which affects the trust people place in its outputs. Blockchain’s immutable digital record can help understand the framework behind AI, addressing the challenge of explainable AI and improving trust in AI’s data integrity.
• Data Security and Integrity: Blockchain’s decentralized data storage can act as an audit trail, showing users how companies utilize their data. If AI models are stored on blockchains, their decisions could become more decentralized, accountable, and transparent.
• Augmentation: Blockchain can help AI expand by providing access to both internal and external data, allowing for more actionable insights, better data management, and model sharing.
• Automation: The combination of AI and blockchain can reduce the need for human intervention in multiparty business processes. Blockchain can remove potentially unnecessary third parties from transactions, accelerating the speed and efficiency of these transactions.
• Computing Power: AI requires significant computational power. Distributed ledger technologies like blockchain could assist by utilizing the computing power of numerous machines.

3. Can AI Help Blockchain Technology? AI can also benefit blockchains. For instance, AI can improve the intelligence of blockchain-based business networks. AI models in smart contracts on a blockchain could use predetermined thresholds and events to execute transactions. Moreover, AI algorithms could potentially assist in detecting fraudulent activity on the blockchain, further scaling and automating processes for evaluating transactions.

Synergies Between Blockchain and AI

Blockchain and AI, though seemingly unrelated, can benefit each other in numerous ways:

• Data Storage and Sharing: Blockchain can be a secure platform for storing and sharing data, which is essential for AI applications that rely on vast datasets. This ensures data is secure, tamper-proof, and accessible to everyone.
• Funding AI Projects: Blockchain-based crowdfunding platforms can allow AI researchers to raise funds from a global network of investors, democratizing the AI research and development process.
• Streamlining Development: Blockchain can help streamline the development of AI projects by providing a transparent and secure data storage and sharing platform.

Future Prospects

Its strength and drawback is AI’s capability to simulate human reasoning and react quickly to vast quantities of inputs. Its decisions are often not transparent, leading to trust issues. With its immutable and transparent records, blockchain can offer insights into AI, potentially providing trust, privacy, and accountability. Combining these technologies can lead to more secure, transparent, and efficient applications across various industries.

Conclusion

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The integration of blockchain and AI holds immense potential. From enhancing trust and verification to improving collaboration, data sharing, and democratizing access to AI models, the synergy between these technologies can offer many benefits to businesses and individuals alike.

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