And as ridiculous as that rhyme sounds, the last line is absolutely accurate and agreed upon by blockchain experts too. AI and Blockchain Technology together is the next step in the blockchain revolution. Blockchain technology has successfully made online transactions even more secure, and transparent. On the other hand, Artificial intelligence has made devices and machines a lot more ‘intelligent’. Converging the power of these two together would mean enhanced security and innovative outcomes.
PwC has predicted that AI technology will add up to $15.7 trillion to the world economy, which would result in a 14% rise in global GDP. Simultaneously, a prediction by Gartner states that the business value being added by blockchain technology will exceed $3.1 trillion by 2030.
The best way to understand this is by focusing on individual strengths first.
Key Features of Blockchain Technology
Blockchain technology is a force to be reckoned with. After the financial crisis of 2008, the first blockchain technology i.e., Bitcoin, entered the market. And almost 12 years later, enormous opportunities have risen in this arena. In fact, the International Data Corporation has suggested that companies will have spent $11.7B on this technology by 2022. It comes with multiple benefits.
A decentralized database is the main feature of blockchain technology. It does not rely on a central point of control. This makes the whole technology system fairer without a single authority.
Blockchain technology functions on a distributed ledger system. This means that the database is synchronized across multiple sites, institutions, or geographies. It makes the transactions swift and secure.
A key feature of blockchain technology, clarity is achieved because there is no need for checks and balances. Within a decentralized network, no one single entity is capable of controlling or manipulating the network in any way.
Blockchain uses innovative consensus protocols across a network of nodes to validate transactions and record data in an incorruptible manner. Through a decentralized database, it provides a double layer of security.
Key Features of Artificial Intelligence
Artificial Intelligence is like the driving force behind new-age innovations that are loved by entrepreneurs and users alike. It has disrupted multiple industries like agriculture, customer service, manufacturing, healthcare, gaming, etc. AI includes deep learning and machine learning. Over the last few years. AI has taken center-stage as data collection and analysis have ramped up every industry with even-speedier computer processing. Thanks to a robust IoT connectivity, AI has many vital features.
Improved Data Management
Together with Machine Learning, areas like data ingestion and query performance are accelerated. With the help of AI, database administrators (DBAs) can focus on higher-impact risks.
A superb feature, customization allows data science to study and analyze user behaviors, preferences, and feedback to deliver a unique insight into individual experiences. Thus escalating engagement.
The accuracy of an AI algorithm is always on point. It significantly classifies data points absolutely correct. This predictive analysis is capable of improving businesses in every industry.
Reduction in Errors
Humans can easily rely on AI algorithms because it reduces the risk of errors through a complex system of interactions. Since there is no direct human interaction in AI, there are no biases or errors in the data output.
A successful outcome of AI is the bot that offers real-time assistance to users and management alike. It makes business functions smoother, more efficient, intuitive, and economical.
Ways in which AI can make Blockchain More Secure
Using AI, along with blockchain technology, probably creates one of the world’s most reliable technology-enabled decision-making systems. Both these technologies converge to deliver an advanced tamper-proof system.
Infallible Data Management
Blockchain primarily relies on algorithms for data mining. But they require a lot more effort before verification due to the complicated process. AI can ease this because it makes the algorithms more intelligent, thus avoiding any technical glitches.
Upgraded Energy Consumption
AI can reduce the massive amounts of processing power that are wasted in Blockchain technology. AI can tackle the same data mining tasks more intelligently and efficiently.
Since the chain of blocks in a blockchain grows substantially over time, there is no way to check that growth. AI can help in sizing the manageability aspect of these blocks through a decentralized learning system.
In a blockchain, every node performs the same function. But AI is capable of improving the system, by using intelligent logic to train all nodes to stop their efforts as soon as one of them delivers a desirable solution. This cuts down the cost too.
AI allows the transformation of large-scale systems into microsystems. This makes the data transactions on Blockchain even more secure. AI can also make business processes a lot more flexible too.
Revolutionary technologies like Blockchain and artificial intelligence are disruptive in their own individual ways individually. However, when combined, they enhance and complement each other. But the real potential of how the interplay of these two technologies will unfold is anyone’s guess at this stage.