Scroll down for more

06/03/2023
15 mins read

AI works with blockchain: Why should you try it?

Combining AI and blockchain technology can make companies work more flexibly. Blockchain provides a secure and decentralized way to store data and conduct transactions. AI can analyze that data and make predictions and recommendations.

1. How can AI combine with Blockchain?

AI can effectively sift through massive datasets, create new scenarios, and discover patterns based on data behavior. Blockchain can effectively eliminate errors and fraudulent records.

AI and blockchain combination are very powerful. It improves every industry, from food supply chain logistics and health record sharing to media licensing fees and financial security.

The integration of AI and blockchain will also impact many aspects of security. AI and blockchain can provide double protection against cyberattacks.

AI and blockchain combination can also be used for retails. You can create AI-powered marketing automation using data collected from your customers via blockchain infrastructure.

2. The great effect of the AI-Blockchain combination on the world

2.1. Improve credibility

Blockchain has many advantages over other types of data storage. However, the biggest challenge is collecting input data and training neural networks. Users publish vast amounts of data online, but all this unstructured data quality is far from perfect.

Well-known companies like Facebook and Google use many computer technologies to avoid collecting and storing false information. Enemy attacks can also reach internal storage. Integrating blockchain with AI can handle various errors by using encrypted data and digital signatures.

You can obtain reliable data despite technical limitations by combining advanced cryptography with hashing and digital signatures. As a result, a given record existed and was unchanged at a given time.

A digital signature verifies the hash by recording who created the stamp. The private key enables digital signatures and is verified with the public key, which acts as an identifier for the private key.

2.2. Improve security

Blockchain efficiently collects personal data such as doctor letters and individual recommendations. And data is what AI systems need on a massive and regular basis. Experts are working hard on algorithms and techniques that allow AI to interact with encrypted data and keep it from being revealed.

Blockchain is very secure, but applications using it can be vulnerable. It is where the inclusion of AI development can be a game changer. For example, in finance, AI solutions will drive the use of blockchain apps. It also helps predict cyber security breaches.

2.3. Improved Efficiency in Business Operations

Smart contracts weren't introduced long ago and may not work as expected. Artificial intelligence can easily verify every smart contract decision. It turns out that smart contract technology is vulnerable to hacking and can make bad decisions under the influence of external factors. AI or blockchain technology can identify these factors and make the right decisions.

2.4. Manage and store big data

The combination of blockchain and AI allows us to secure all this data so that third parties cannot access it.

Another advantage of this combination is that it improves how users interact with data. Computers use different character combinations to analyze the encrypted information and validate the transaction.

In this case, the AI follows the code and learns this information. And AI does it faster than the human brain. In most cases, it happens almost immediately.

2.5. Easier access to shared databases

Many companies use a common database to run their business successfully. For example, banks prefer a shared database that verifies the accuracy of user-submitted data and makes it easy to check credit histories.

But combining blockchain and AI makes it more accessible. AI algorithms can easily make decisions about loan approvals and disbursement of funds. All of this facilitates access to a shared database. A similar system can be developed for any company and store that information in one place.

3. Top industries can benefit from AI-Blockchain technology

As you know, blockchain is already gaining popularity. But business sector practices are also beginning to be questioned. Many industries have found blockchain technology superior for completing essential tasks. Let's take a look at the major sectors impacted by blockchain technology.

3.1. Supply Chain

Blockchain technology can track every step of the supply chain. For example, you ordered groceries, had your food delivered, and found the food unpleasant. The owner can look into the blockchain ledger to figure out where in the supply chain the order went wrong and made you uncomfortable.

In other words, in supply chain management, blockchain provides persistent transparency and verification of transactions shared by multiple supply chain partners. All transactions are permanent and auditable, making it easy for owners or customers to view all records.

It can also be used for verification. For example, seafood verification can track seafood from sea to market. The Pacific Tuna Project uses blockchain to manage fisheries information, import/export details, purchase details, and track tuna catch. It helps prevent illegal fishing.

In other words, using blockchain for supply chain management allows you to get the information you need and get the right answer every time.

Another health issue is counterfeit medicines. Blockchain technology can also control them. The problem is that counterfeit medicines are often difficult to distinguish from the real thing. Blockchain technology solves this problem by using a supply chain management protocol to track the origin of drugs.

3.3. Insurance

A decentralized blockchain technology system allows insurance companies to identify false claims and prevent counterfeiting.

3.4. Financial services

Blockchain disrupts the commercial banking system by providing a peer-to-peer payment system with high security and low fees.

Because there is no central authority, there are no fees to pay. It eliminates the need for third parties to conduct transactions using Bitcoin and many other cryptocurrencies.

For example, transactions with your friends are recorded in a ledger, viewed, and verified by any cryptocurrency user. So it gives you true autonomy over your transactions.

4. Conclusion

AI and blockchain are powerful technologies that can transform our world. Used together, they can be even more powerful. Some countries are already building smart city systems based on IoT, blockchain, machine learning, and artificial intelligence.

Blockchain has the potential to simplify the operation of AI solutions and dramatically accelerate their development.

Read more in our blog

Project Management

Measuring Project Success: Evaluating Goal Achievement Beyond Deliverables

It's essential to evaluate goal achievement beyond the standard deliverables, understand key factors in comprehensive project evaluation.

15 mins read
12/06/2024

Software Development

How to Choose the Right Pricing Model for Your IT Outsourcing Project

Learn how businesses can choose the best IT outsourcing pricing model to ensure project success and cost efficiency. Discover the pros and cons of different models and best practices for vendor negotiation.

15 mins read
30/05/2024

Software Development

Dynamic Pricing Strategies for Software: Adapting to Market Changes

Discover how dynamic pricing strategies help software companies adapt to market changes and maximize revenue.

15 mins read
22/05/2024