Blockchain Technology and AI: What could it all mean for the future?
If you are tech-savvy, you must know about the current hype surrounding the convergence of artificial intelligence and blockchain technology. Although these two have already changed industries as individual technologies, people expect that the combination of both can revolutionize and redesign the tech industry like never before. Let us first introduce blockchain and AI individually before we look at their impact on the tech industry.
What is blockchain technology?
Remember that pre-google doc days when there was no way for two people to access and edit a document at the same time? Blockchain technology is comparable to that of google docs. While Google Docs is online software that allows several people access to documents only, blockchain has far greater uses. It allows multiple systems to proofread databases for digital money transactions, and so much more.
The process of online credit transfer has perceptibly been changed with the arrival of blockchain technology. Every time a transaction takes place, it is updated on all ledgers, making it accessible to numerous parties at the same time. This decentralized system makes blockchains and any data stored on it highly stable.
The application of blockchain:
It would not be an understatement to call Blockchain tech the backbone of cryptocurrencies like Bitcoin. In theory, Cryptocurrencies suffer from a potentially cavernous problem called double spending. This means that there could be a huge risk with online cryptocurrency transactions whereby the holder of the money could send copies of their crypto-coins to different people at the same time.
Blockchain, however, completely eradicates any such possibility (unless there is a 51% Attack) thanks to its peer-to-peer review system. By allowing access to any transaction to multiple systems at the same time, it guarantees the authenticity of that transaction.
Owing to this security, when we buy cars today, we have options to do so using cryptocurrencies with complete peace of mind.
Artificial intelligence
Artificial intelligence essentially enables machines to think and react like humans. Things like speech recognition, learning, planning or problem-solving can also be conducted via artificial intelligence. Artificial intelligence has some applications mentioned below.
The applications of Artificial Intelligence
AI in banking
The financial industry has achieved wonders with the help of AI whether it be online banking apps or intelligent computers which deal with customer queries.
AI in recruitment
Smart computers can analyze huge amounts of data on company details, culture codes, hiring trends and job offers so that hiring the right person is a piece of cake.
AI in agriculture
Farmers can grow better crops and look after their animals while saving time and energy through AI. You can easily make predictions about time to harvest and total milk production through AI. Similarly identifying the soil type or the need for nutrition in animals is also an easy task through AI.
AI in healthcare
The healthcare sector can greatly benefit from AI in data management and analyses. Disease outcomes can be more easily predicted based on information about symptoms and lifestyle. AI is also increasingly used in devices such as heart rate monitors and insulin pumps.
AI in transit
The transit sector has to do the onerous task of transporting billions of people per day while avoiding delays and improving quality. Therefore, artificial intelligence can radically improve things. Attaching sensors to vehicles can help avoid wear and tear and ensure quality. Similarly, in the car, AI can provide updated information about potential traffic jams, accidents, weather conditions, etc.
Convergence of AI and Blockchain technology and what it means for the future
There are some ways through which AI can change the blockchain technology for the better. AI is very efficient when it comes to reducing energy consumption and can enable minimal energy wastage in blockchain as well, resulting in less investment in things such as mining for bitcoins. Al is also very effective when it comes to enabling more decentralized learning systems. Thus, you can manage the data of blockchains way more efficiently through AI.
Although blockchains tend to be difficult to hack, its further applications can be less secure, and Al can be a good addition in guaranteeing the security of all its applications. AI can make blockchain quicker since it enables faster transactions. Because of their encrypted nature, operating with blockchain data on traditional computers can be hard since it needs large amounts of computer processing power. AI can help in that department.
Sometimes decisions made by AI are difficult for humans to comprehend as AI is capable of assessing a large number of variables in one go. Blockchain technology can enable us to look into these decisions and understand them.
Both Blockchain and AI together can make the payment methods more streamlined. International transactions can be particularly complex due to middlemen such as banks. Cryptocurrency works a decentralized system that doesn’t involve such a middleman. Wages in cryptocurrency also have the unique advantage of not depending on local laws. This means that you can protect businesses from volatile exchange rates.
Applications of these technologies in industries include AI Marketplaces, crowdsourced predictive models for hedge funds and investment management platforms.
Conclusion
Blockchain and artificial intelligence both have immense potential as individual technologies but when combined; their effects can truly be game-changing. Both complement and embellish each other’s capabilities and also make space for more opportunity and accountability.
The combination of AI and will lead to new opportunities in most industries. For example, in Industry 4.0, computers and automation will converge like never before. Interoperability, information transparency, technical assistance, and decentralized decision-making are the many features required to make an Industry 4.0. These characteristics can be achieved only with the convergence of Blockchain technologies and AI with IoT which again highlights the significance of their union.
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