Press "Enter" to skip to content

Can Artificial Intelligence and Blockchain complement each other?

Cryptocurrency

Photo: Shutterstock

Artificial Intelligence (AI) and Blockchain are undoubtedly the most exciting technology trends of the past two years. And there are valid reasons why these technologies have attracted a lot of attention.

On the one hand, artificial intelligence promises to facilitate the automation of various tasks, in addition to having the ability to model complex scenarios with greater efficiency compared to humans.

On the other hand, blockchain technology promises to provide enhanced information security and privacy, as well as the potential to eliminate the control and centralization of authority by large organizations.

Given this reason, the common question that most people ask is whether both technologies, AI and Blockchain, can work well together.

What is artificial intelligence?

Intelligence is the ability to understand and organize information beyond the obvious, the explicit. Intelligence can be classified as:

Following this reasoning, artificial intelligence refers to intelligence created by man.

In simple terms, it refers to the theory and development of computer systems that can perform tasks that characteristically require human intelligence.

Tasks include visual perception, speech identification, decision making and language translation.

What is Blockchain technology?

Blockchain technology refers to a shared and decentralized record of transactions, characterized by transparency, reliability, verifiability and smart contracts.

The decentralized and shared structure implies maintaining data on a network, allowing all participants to access the information or to carry out transactions without having to connect to a central server.

As each block of the blockchain has unique encrypted information, this technology guarantees the reliability and authenticity of the data.

It is important to note that it is not possible to change the data held in a block without validating the entire data chain stored in a block and, therefore, a participant is not able to harm the chain.

This explains why this technology depends on a consensus algorithm, which refers to the mechanism by which all parties in a network reach an agreement to make changes to the blockchain.

Contributing to the construction of the blockchain concept, demonstrating a relevant use of this technology, we have smart contracts.

Smart contracts are decentralized codes that can be activated when a specific sequence of activities is met. This modality facilitates transactions between the parties in a safe and verifiable manner, without the need for an intermediary.

How blockchain technology and artificial intelligence can complement each other

Blockchain technology and artificial intelligence are two technologies that are developing in opposite directions.

AI focuses predominantly on fast and complex information that depends on large volumes of data and computing resources.

On the other hand, blockchain technology has the ability to take advantage of these data and computing resources in a more transparent and decentralized way. But its processing is still slow when compared to AI.

However, this challenge is likely to be faced by different blockchain sizing projects in progress.

For this reason, when combined, blockchain technology and artificial intelligence can contribute to the development of interesting applications. Some of the most important utilities include:

  • Maintaining data privacy
  • Creating a marketplace for algorithms
  • Facilitate the growth of a data marketplace
  • Allow the launch of autonomous decentralized companies

Maintaining data privacy

Blockchain ‘anonymizes’ information. While mechanisms exist to know what information is connected to which individual at any given time, the ability to anonymize makes the blockchain ledger a viable platform for research purposes.

Likewise, instead of centralized companies like Google collecting information about millions of users, any entity that can access a blockchain ledger can use anonymous information available in the blockchain registry. This is to perform analyzes, make estimates and even train algorithms without violating the privacy of network users.

As the focus is on the collaboration between blockchain technology and artificial intelligence, the possibility of training algorithms is a relevant capability, as it can minimize bias in data access.

For example, the algorithms, which are AI-based inventions, of the major search engines are generally trained based on data from predominantly Western users.

However, blockchain technology can make it possible to create and train algorithms that are more representative of the global population through the use of a wide-ranging and decentralized global anonymous blockchain.

Creating a marketplace for algorithms

The moment you decentralize access to computing and data, Artificial Intelligence can represent a great opportunity for growth, driven by this community. We already have open source packages for common machine learning models, like TensorFlow.

This means that blockchain-based data and computing can drive this trend and give rise to a marketplace for algorithms.

So, instead of AI development being internal and proprietary, it can become an open market in which anyone can participate and provide value.

As we have seen with the rise of the Software as a Service (SaaS) business models, an algorithm market can promote innovation far beyond private development.

Facilitate the growth of a data marketplace

An important consequence of blockchain-based systems is that users are given greater control over their data.

Search engines currently track and maintain information online about users' activities. Greater control over this information means that users may have the opportunity, for example, to exchange their information for personalized services.

Allow the launch of autonomous decentralized companies

The most abstract and also potentially transformative application of blockchain and AI working together is the creation of independent businesses.

We already have some Autonomous Decentralized Organizations (DAOs). However, its terms of engagement are based on smart contracts, which involve rigid coding.

This means that the company can perform its functions, but cannot make independent choices, as it depends on the rules developed by the developer of the smart contract.

Combining blockchain technology and AI means that there is a possibility that these organizations can make independent decisions. These organizations can obtain resources and select the best approaches to distribute those resources according to each context.

Such decisions, whether commercial or philanthropic, can be made based on market information.

This context may favor the emergence of autonomous organizations that operate without external influence. This may represent an unprecedented solution in the sense of effective governance, economic equality and a reduction in the workload for those working in areas of human knowledge.

Positioning your business for the convergence of Blockchain and AI

While specific blockchain AI integration applications will depend on each unique business need, the common factor will be data.

The blockchain will ensure that the information is safe, private and reliable. On the other hand, AI models will use this information to increase efficiency.

Therefore, entrepreneurs and businesses will need to identify their specific business requirements and determine whether blockchain or AI technologies can improve them.

If you have already automated your processes, it can be beneficial to explore how blockchain can provide improvements.


About the author

Fares Alkudmani has a degree in Business Administration from Tishreen University, in Syria, with an MBA from Edinburgh Business School, Scotland. Since January 2019, he has worked at the cryptocurrency company Changelly as general manager for Latin America.

This source of this article is portaldobitcoin.com.

Disclaimer - OBN is an informational website which aims to give the latest blockchain related news to the readers. Articles on OBN should not be considered as investment advice. Trading cryptocurrencies is a high-risk investment, every user is advised to consult an expert before making any decisions.