Blockchain and Artificial Intelligence Convergence Advancing Both Sectors

Blockchain, Education | August 27, 2018 By:

Blockchain technology is revolutionizing the data storage industry. We are seeing a major shift toward the use of decentralized storage, and we have blockchain to thank for this innovative storage method that boasts an array of security benefits. We’re also noticing a convergence of blockchain and artificial intelligence, both of which feature their own levels of technical complexity. However, when combined together, the results are truly transforming today’s digital landscape.

How Does Blockchain Impact Artificial Intelligence?

Blockchain technology uses encryption and distributed ledgers to store and transmit data anonymously. When this technology is combined with artificial intelligence, machine learning is heightened to a new level that we’ve never seen before. Data stored in a blockchain environment is highly secure. Cryptography is integrated into blockchain’s filing system, making it perfect for the storage of personal and confidential data. When unlocked and combined with artificial intelligence, groundbreaking technologies can be used to add much convenience to our lives.

Artificial intelligence and algorithms are behind many of today’s products and services. Take Netflix for example. By collecting, storing, and analyzing your data, the platform curates lists of movies it believes you would like to watch. And the truth is, its curated lists are typically spot on to our interests. But collecting, storing, and analyzing this data costs an enormous amount of money and we’ve seen time and time again how traditional forms of data storage can lead to disaster. Data breaches are all over the news on a regular basis.

With blockchain technology, your information is secured in an encrypted state. A person must have the correct private keys to access the data. This means only a few kilobytes of data must be completely secured to ensure the rest of the data is safe and secure. This greatly minimizes expenses related to the collection, storage, and analysis of data.

As artificial intelligence continues to become more advanced, we are seeing data experts build algorithms that can work with encrypted data; this means the data doesn’t have to be exposed in order for the artificial intelligence to work with it. All in all, these two forms of technology work very well together to mine data and pinpoint patterns and hidden insights. Even better, the data stored in a blockchain environment cannot be altered, either intentionally or unintentionally. When artificial intelligence is used to derive insights, there is no concern of human error or tampering.

Real-Use Cases of Combining Artificial Intelligence and Blockchain Technology

Neuromation is a company that works with synthetic datasets. It combines these datasets with artificial intelligence to transform businesses. The company offers a variety of advanced products including:

AI-powered cameras

Object detection and classification

Medical imaging equipment

Industrial robots

Manufacturing software and hardware

The company’s goal is to offer products that operate via artificial intelligence that is unbiased. And as you can see from its available products, the company works with clients in all industries. When the company’s artificial intelligence products are combined with blockchain technology, clients are able to master neural networks, which gives them the ability to mine and share data that take their businesses to the next level of success.

Institutions offering financial services can also significantly benefit from combining artificial intelligence and blockchain technology. When data is stored in a blockchain, artificial intelligence can be used to evaluate various financial products, like loan products, according to a wide range of criteria, such as demographics. This allows financial institutions to not only identify patterns but also predict the types of products that will be of the most benefit to their customers.

In some countries, blockchain technology is used to verify the citizenship of those who are not able to provide birth records and proper documentation. It also has the ability to monitor the migration of people and then provide valuable information regarding terrorist-related issues based on the movements it has monitored. From a government standpoint, combining artificial intelligence and blockchain technology has reformed policymaking.

A Closer Look at Artificial Intelligence and Blockchain Technology

As single entities, artificial intelligence and blockchain technology are concerned with two separate objectives:

Artificial intelligence aims to analyze big data to identify hidden patterns and insights to create autonomous machines.

Blockchain technology aims to secure data in a completely safe and secure environment.

When combined, however, we see major advancements in data sharing. Artificial intelligence uses data to compute its algorithms and calculations. Blockchain technology ensures this data is safe as it is being transferred from one device to another. More so, it saves time in processing the data. And since artificial intelligence devices have an autonomous nature, they must be built with ‘secure inter-device communication’, which is another area of concern that blockchain resolves. Blockchains enforce data authentication and if there is any compromised data, the data sharing process and analysis will not continue.

Conclusion

Blockchain evolves to the socialization of software. Blockchain is a rapidly evolving field. Let us put aside the so-called public-chain disputes and consensus arguments, and look into the distant future. It’s clear to see combining blockchain technology and artificial intelligence is going to transform every industry. It’s going to lead to enhanced efficiency in business processes, higher quality services and products, and most importantly, it will further push the development of computer science.