AI And Blockchain: A Winning Combination Of Efficiency, Security For Industries
Artificial intelligence and blockchain are among the most impactful technologies of the 21st century. Working in tandem, they are a powerful combination, capable of transforming numerous industries by upgrading their efficiency, transparency, and security.
AI can mine through a huge dataset and find patterns based on data behavior. It enables machines to make decisions. Blockchain technology ensures higher security of data, and provides informational transparency and quick traceability.
New patterns created by AI can be verified for authenticity on a decentralized blockchain infrastructure. This integration of AI and blockchain can be used in consumer-facing businesses, such as for retail transactions. Data acquired from the customers through blockchain infrastructure can be used to create marketing automation through AI.
How blockchain can improve AI, and vice versa
Blockchain changes how we handle money, make loans, and send money to each other. It is creating financial on-ramps for people who do not traditionally have access to start-up funds or pools of money. One of the biggest use cases for blockchain is creating financial openness, opportunity, and diversity.
But blockchain can accomplish so many things beyond simple finance. Take smart contracts. Imagine being able to eliminate third parties or middlemen when doing business, whether B2B or B2C work. It is simply more efficient. It cuts fees and simplifies logistics.
Beyond that, blockchain can help with record keeping, which means there are applications in transportation, healthcare, and government. Even storing and sending your iPhone photos can be done through blockchain. The technology works with literally any digital asset.
One of the challenges with AI is that its decisions are not often transparent, which can lead to trust and ethical issues. But blockchain can help AI in this regard. Blockchain’s immutable, transparent digital records and decentralized data storage could help offer insights into a centralized and opaque AI. The decentralized data storage, for example, can act as an audit trail, showing users how their data is being used by companies and other centralized organizations. Other ways that blockchain could improve AI are in augmentation, automation, and computing power.
AI, on the other hand, could benefit blockchains. It could improve the intelligence of blockchain-based business networks because it can quickly read and analyze data. Also, AI algorithms could help with the detection of fraudulent activity on the blockchain.
Some of the industries where the two technologies can be applied together include:
- AI can be used to detect and respond to threats, while blockchain technology can ensure the security and integrity of data. By combining AI and blockchain, it’s possible to create more secure and efficient cybersecurity systems for individuals, businesses, and governments.
- Supply chain management. AI and blockchain can aid in digitizing currently paper-based processes, making data shareable and trustworthy, while adding intelligence and automation to execute transactions. With blockchain creating a secure and transparent supply chain, and AI analyzing data to optimize the supply chain, companies reduce costs, improve efficiency, and ensure products are delivered on time. Carbon emissions data could be tracked on-chain at the product or component level, helping manufacturers with their sustainability efforts.
- Electronic health records can be stored on the blockchain. AI could help provide treatment insights and patterns from patient data. With data shared on the blockchain, medical practitioners can work together across organizations to improve care.
- Financial services. AI can be used to detect fraudulent activities and patterns; blockchain can be used to ensure the security and integrity of transactions. Automated AI compliance processes that draw on immutable blockchain data records can result in faster, more accurate reporting.
The potential of blockchain and AI being used together is impressive. As those technologies evolve and work well in tandem, they will significantly change how many industries work.
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