Let’s do a simple exercise, shall we?
Try to imagine a world where innovations in banking, finance, power, medical services and social media are the best they’ve ever been. One where these industries and others are entirely powered by unbreakable, hard-to-hack-or-crack streams of data.
A world where this kind of superpowered data is powered by powerful algorithms, and is able to learn, update and improve itself. Do you think such a world is possible? It may be closer than you think. In the last decade, AI and blockchain have proven themselves to be the future. One of them (blockchain technology) has the ability to create unbreakable chains of data.
On the other hand, AI is able to create self-updating algorithms that are able to learn from the world around them. But have you ever wondered what would happen if we found a way to bring these two pieces of technology together?
Well, welcome to the future.
Understanding the building block(chain)
What exactly does AI mean?
AI, in simple terms, refers to the combination of algorithms and data structures that give machines (especially computers) the ability to think, learn and solve problems. Probably better than a human being could do. Believe it or not, you are directly using some form of AI, every day.
The music streaming apps you use, your flight booking apps and even the traffic lights on the roads. AI is everywhere. Blockchain technology, on the other hand, can be decentralized, generally unbreakable and a transparent piece of technology that allows secure and tamper-proof transactions.
Blockchain technology has a number of use cases that we have barely even scratched the surface of. Things like supply chains, transparent voting and asset tokenization all fall under the umbrella of blockchain technology. With blockchain technology, you can transform the ownership of your home into a token that you can transfer, sell or divide into multiple pieces.
The AI and blockchain revolution
Both of these technologies have proven themselves, time and time again. However, when AI and blockchain come together, they become an unstoppable force.
If AI is used properly, it can improve the abilities of blockchain networks, allowing them to process data faster, make better decisions with hashing algorithms and more even making smart contracts “smarter.” Consider smart contracts that have the ability to think or make independent decisions.
At the same time, blockchain can return the favor of AI systems, increasing their trust and security and ensuring that the data used to train AI models is tamper-proof and verifiable. When AI and blockchain technology come together, here are some wonders they can give birth to.
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Personal practices for medical professionals
At this point, almost everyone has tasted the power of AI tools such as OpenAI’s ChatGPT, Google’s Bard and Microsoft’s Bing Chat. AI can be used to analyze large amounts of medical data, such as patient records, genetic information and clinical trials. With this information, it can test several drug combinations, simulate a person’s immune responses to them and even help medical professionals by suggesting treatments for certain conditions.
When integrated with blockchain, patient data can be stored securely and accessible only to authorized parties. Keeping large amounts of patient data under bulletproof privacy can lead to more accurate diagnoses, tailored treatments and faster drug discovery.
Decentralized finance (DeFi)
There are several problems with traditional financial systems such as banks, brokers and lenders. These problems are so serious that fraud, unfair interest rates and security issues are just the beginning. With blockchain technology managing finances, there is less need for intermediaries and middlemen, contracts are open for all to see and well-written smart contracts cannot be cheated or bent. When AI comes into the picture, its algorithms can analyze market data in split seconds, allowing almost anyone to make better and informed decisions in trading, banking and purchasing.
Fraud detection
Patterns are everywhere, and it is possible to accurately predict many situations ages before they occur. When AI is integrated with the vast amounts of data flowing through blockchains every second, many of these patterns that indicate fraud can be identified, caught and prevented before they happen. With this, scams, rug-pulls and outright theft can be identified earlier.
Product tracking
Imagine a world where you can check the proven age of a bottle of wine, the age of a house, the expiry date of a can of sardines or even the freshness of a crate of eggs. using blockchain technology. Using blockchain and AI solutions, a company can create a digital record of products that contains information such as where/when it was made, allowing users to trace the origin of a product and of the materials used to make it.
The challenges and opportunities
While the integration of AI and blockchain holds great promise, it is not without problems. One of the biggest problems to face is scalability. In the real world, AI and blockchain processes require massive amounts of computing power. However, AI can also be used to implement blockchain scalability solutions such as sharding and off-chain computation.
Another concern may be the issue of privacy. The combination of AI and blockchain technology requires more opportunities to share data. Data sharing, in turn, raises issues about who owns the data and how it will be used. Both technologies must strike a balance between data access and individual rights.
At the same time, blockchain and AI technology require a lot of skilled personnel with experience using AI algorithms and blockchain protocols. Training and finding talent to join the workforce can prove to be a challenge and will be one of the key aspects for the success of this gathering.
Overall, the combination of AI and blockchain represents a major paradigm shift in modern technology and presents significant opportunities for lives and industries to thrive. This combination of AI intelligence and reliance on blockchain technology will serve as the foundation for solutions that are more innovative than we can even dream of.
Abhishek Singh is a serial entrepreneur who currently works at Acknoleger and is a vocal advocate of crypto.
This article is published by Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. The opinions expressed do not necessarily reflect those of Cointelegraph.
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