Artificial Intelligence and Blockchain are super powerful technologies. Both these technologies have impacted multiple industries and transformed economic and social interactions. Blockchain when combined with artificial intelligence creates new possibilities to empower an entire new generation of applications.
Also, businesses and industries enjoy enhanced productivity, security and transparency due to the integration of AI with blockchain. The integration of AI into Blockchain is already offering great results in multiple industries. Here are five prime examples that showcase the potential of integrating AI into the world of blockchain:
Enhanced Blockchain Security
Traditionally, blockchains have relied on cryptography to keep transactions secure. But AI offers an extra layer of protection to the party. It monitors transactions and network activity, continuously acting like a vigilant security person.
If it detects any suspicious activity, it can sound the alarm and take immediate action to stop threats. Companies like Certik, based in New York, are already using AI to audit and secure smart contracts and decentralised applications – the building blocks of a new digital economy.
Another way to secure a blockchain is to use a VPN. Many companies in the crypto sector use it for secure transactions. It secures the blockchain in the same way as it secures your online streaming activities. It hides the IP address and prevents hackers from connecting to your wallet address and taking your money.
There are free and paid VPNs. Free ones are useful for general online browsing or streaming activities. Most entertainment lovers who prefer watching movies, international TV shows and sports events use it for streaming content not available in their country.
People who prefer watching geo restricted TV shows, play games or secure their online activities can search for detailed VPN reviews or find a perfect free VPN with FirestickTricks. Both free and paid ones work for general internet browsing and streaming purposes. However, paid tools are always more reliable and offer more features than the free ones. In addition to entertainment, most online applications including blockchain require a layer of security for protection of sensitive financial information.
As blockchain involves financial transactions, it is always better to use a premium VPN as it offers enhanced security and privacy. Individuals and businesses cannot afford the risks involved with using a free VPN for blockchain transactions.
Smarter Contracts, Smoother Operations
AI can be highly useful for smart contracts, those self-executing agreements that power many blockchain applications. By analysing historical data and leveraging predictive analytics, AI tools can help you identify potential obstacles in executing contract terms before they become roadblocks.
Additionally, natural language processing capabilities can allow smart contracts to understand and translate human legal contracts, bridging the gap between the digital and traditional worlds. Scifn, a New York-based blockchain and AI powerhouse, offers services in building and maintaining blockchain infrastructure, including smart contract optimization powered by AI.
Turning Assets into Tokens
Blockchain lets us tokenize real-world assets, essentially creating digital representations of things like stocks or even artwork. But how do we value these digital tokens? Here’s where AI steps in. By analysing provenance data (the history of ownership), asset conditions, and even market trends, AI can calculate the value of each token.
Machine learning can take this a step further by continuously analysing real-time data feeds and updating the token’s value as market conditions change. Solulab, a Californian company specialising in AI and blockchain solutions, helps turn real-world assets into these valuable digital tokens.
Data Integrity
Data is the lifeblood of many blockchain applications, but how do we ensure the accuracy of this information? AI steps up to the plate once again. It can verify data sources feeding into smart contracts before they’re etched onto the blockchain.
Imagine AI-powered smart contracts that can interpret complex legal agreements, eliminate ambiguity, and guarantee compliance with regulations. Blackbird.AI, a tool using AI to verify off-chain news content, demonstrates this potential. It uses blockchain to securely store verified content, ensuring trust and transparency in the information space.
Transparency
One of the major issues with current deep learning models is that it’s hard to see how they make decisions. These models are super complicated, with lots and lots of settings. Even experts sometimes can’t explain why a model gives a certain answer when you give it a certain question.
By keeping a clear record of data, blockchains can help AI models show how they work. This means we can look at the path the models took to make decisions and see what information they used. This can make AI recommendations more trustworthy and reliable.
Decentralised Data Storage
Many AI models need loads of data to learn. This data is super important because it teaches the AI how to do stuff. But keeping this data safe and true to its origin can be tricky.
Blockchain-based systems like Filecoin, IPFS, and Arweave could help keep this data safe and true to its source. Also, new ways of keeping data secret could let AI learn from encrypted data without giving up privacy.
If we use blockchain storage with deep learning, we can make AI systems more secure and trustworthy. Plus, it can make sure they do what they’re supposed to do.
Smart Contract Development
There are cool tools now that use AI to help people make smart contracts faster. With tools like GitHub Copilot, smart contract developers can work way quicker. Plus, AI-powered tools can add more features to smart contracts, like analysing data from sensors or understanding feelings from text. This could make a new kind of internet, called Web3, even more exciting.
In a demo, Laurence Moroney from Google AI showed how to make art with AI for smart contracts. AI can also make new kinds of video games by making worlds, characters, and events all by itself. This could mean anyone could make a game using AI and share it with others.
Challenges in Merging AI with Blockchain
When AI merges with blockchain technology, it brings about numerous advantages. However, several obstacles impede its widespread adoption.
1. Data Privacy Concerns
A significant challenge lies in the lack of adequate frameworks and standards for safeguarding data privacy. To ensure that the integration of AI into blockchain adheres to ethical and legal norms, robust regulatory frameworks are essential. Additionally, establishing standards for decentralised applications supported by AI is crucial to uphold user privacy and foster trust among users.
2. Ethical Concern around AI Bias
Another obstacle stems from ethical concerns related to AI bias. AI models often have inherent biases present in the training data, which they can amplify. Imprinting these biases onto an immutable ledger could lead to systemic flaws and trigger ethical quandaries of considerable magnitude.
3. Absence of Clear Interoperability Mechanisms
Moreover, the lack of standardised protocols and interfaces for AI interoperability poses a significant challenge. Historically, AI models have faced difficulties in extracting and interpreting data from external sources. To facilitate the integration of AI systems into blockchain networks, standardised protocols and interfaces are imperative for seamless data sharing.
The Future of AI and Blockchain
The convergence of AI and blockchain technologies holds immense promise for the future. AI facilitates scalable intelligence, while Web3 enables large-scale coordination, value transfer, and trust minimization. By combining these technologies, new opportunities emerge, enhancing various industries’ security, transparency, and overall efficiency.
The potential for revolutionising diverse sectors through the fusion of AI and blockchains is vast. As businesses seek to automate processes and elevate productivity, the impact of AI on software products is poised to expand across different segments of the economy.
Users are increasingly drawn to applications underpinned by cryptographic assurances. The convergence of these two technological shifts is poised to fundamentally reshape the operational dynamics of our societies and economies.
Summing Up
The integration of AI and Blockchain creates an evolving base for innovation in an age where big data is king. Businesses that make use of these technologies can reap tons of benefits: enhanced operational efficiency, improved data accuracy, and ironclad information security. As we move forward, this dynamic duo holds the key to transform industries and create a future with groundbreaking possibilities.
