The world is growing and changing for better. Breakthrough in technologies are creating new possibilities and unimaginable avenues for innovations. One such technology that took the world by storm is Blockchain. In simplest of words, it is a secured distributed database, immutable in nature, which is shared across all the participating parties in a distributed network. Through this technology, data of transactions can be recorded, with the convenience of adding basic information on-chain and adding attachments off-chain.
Artificial Intelligence is another paradigm shift in technology, creating waves for business evolution. Artificial Intelligence in its truest sense is a set of instructions that enable the computers to create their own algorithms, without being programmed for the same, and learn new things.
The functionality of these two technologies is poles apart, but what if they functioned together?
Here are the possibilities:
1. Where Artificial Intelligence aids Blockchain
2. Where Blockchain aids Artificial Intelligence
Where Artificial Intelligence aids Blockchain
Unlike any other technology, Blockchain also has its perks and limitations. The majority of these limitations can be addressed through AI, and here is how:
● The Blockchain(Bitcoin) is growing at a rate of 1 MB every ten minutes and with this rate, it’s going to take more and more space with time. While Blockchain Pruning is a proposed solution to cut down on unnecessary old data of transactions, Artificial Intelligence can save the efforts by sharding the data through decentralized learning systems like federated learning.
● Validating and sharing transactions cost a fortune, if not time consuming alone. As per the 2016 report of Deloitte, it takes more than $600 million a year to carry out these operations. A smart system may assist miners in validating the transactions, cutting down on total cost and time.
● One of the major drawbacks of Blockchain Technology is its energy consumption. As per the stats shared by Digiconomist, current estimated annual electricity consumption of Bitcoin is 71.12 TWh, with annual global mining revenue of $5,332,047,485 at a cost of $3,556,216,066.
Artificial Intelligence has proved its ground in conserving energy by optimizing the usage and can efficiently cut down on the major power usage challenge of Blockchain mining. This optimization will also aid in lowering the investments shelled out on mining hardware.
● Considering a future, where the data are stored upon the Blockchain, different organizations will pay for accessing the requested data. While compiling and processing this data requires intelligence for swift outputs, AI will facilitate organizations by granting access and track usage of information. The limits and permissions for the access of data will be defined and controlled by these programs.
● Open data is a plausible concern for Blockchain where companies hold private data on chain. Owning unsafe personal data can trigger strategic and regulatory concerns. Moreover, the layers and applications of Blockchain are not as hack-proof as the Blockchain itself. Artificial Intelligence serves the purpose of securing Blockchain applications and deployment, throughout fixed app structures.
Where Blockchain Aids Artificial Intelligence
Artificial intelligence, a developing technology, shares its own set of limitations, and here is how Blockchain will address the pain points:
● One of the major limitations to Artificial Intelligence’s implementation and usage is its incapability to explain the logic behind reaching the decisions. Blockchain serves as a solution to this issue by offering clear audit trail storage. This will enable tracing of the decision-making process, offering an understanding of how the program reached the said solution and the logic behind it, leading to improved trustworthiness.
Refference from: https://digiconomist.net/bitcoin-energy-consumption
● The clear audit trails of AI served by Blockchain will boost trust between the bots, enhancing machine to machine interactions and creating a robust mechanism.
● Coding of AI in DAO with smart contracts will create a limited space to perform actions and prevent catastrophic risk scenarios.
● Blockchain will improve effectiveness of Artificial Intelligence through the means of secured data sharing, where the AI will grow smarter with more data to train with, resulting in better learning and actions.
● While the model of machine learning is, ‘Trash In, Trash Out’, feeding incorrect or compromised data to learn will bring unfruitful results from the program. Integration of Blockchain will prove extremely beneficial, where only correct data are stored upon the chain, clutching the feed of compromised data to the program. This will create a safe and secure channel for AI programs to learn from and deliver fruitful results.
Blockchain and Artificial Intelligence, both the technologies hold potential to bring technological revolution, and their integration will open gates to even smarter possibilities for every industry.
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