Everyone knows about Artificial Intelligence (AI). Someone who doesn’t know the basics of Data Science, will know Siri or Alexa and they would know it’s all because of AI. As world population increases and demand for innovations increases, one or the other new technology is being born every day. To make the most out of these technical advancements, it’s high time, we learn to combine them.
AI comprises the algorithms and statistical models used for specific purposes. Blockchain is a list of records. The significant feature of Blockchain is that it is a highly secured ledger. The Blockchain mechanism is used in highly secured databases and in applications as simple as video games too.
Cryptokitty, introduced in 2017 is one such example. It proved how Blockchain is used to categorize digital assets of games. Let us see how combining both AI and Blockchain can benefit society.
Why should we combine AI and Blockchain?
Blockchain is used to record transactions. The working of Blockchain requires high computational power from computers. Hence, AI can be used to increase the processing power of the systems. One can learn to apply AI techniques for specific purposes by availing an AI Course online.
1. More Security
The first and foremost application of Blockchain is safety. Blockchain mechanism can be particularly used in banking and finance industry. AI could be employed to strengthen the security system.
Information is held in Blockchain databases in an encrypted manner. So, there is a need to keep only the private keys secured. This will safeguard the entire other data. One another feature to be absolutely aware about Blockchain is that it doesn’t facilitate data correction. Hence, the main purpose behind integrating AI with Blockchain would be to allow changes in data, even though they are in a highly encrypted format. AI could also be used to raise secure walls against fraudulent activities in the banking industry.
2. Bitcoin and Other Crypto Currencies
Since we are in the discussion of how safe it is to use Blockchain, let us know how it takes monetization to the next level. Bitcoin as an alternate form of currency is growing in a jiffy. Almost everyone is investing in it and it has already started to define its place in the day-to-day world. People who know how to make use of it are getting richer in reduced amounts of time. When a technology could revolutionize every industry this far in less amount of time, think about how far the advancements will go. That is why, Bitcoin and Etherum are already using Blockchain to maintain their accounts. Artificial Intelligence combined with Blockchain could lead to more types of crypto currencies. It can ensure more targeted and safe transactions. The recognition skills of AI can detect fake currencies and any illegal activities too, provided an algorithm to map changes.
3. Internal Auditing
It would be of everyone’s knowledge how AI is being used in different applications, one of them being auditing. Algorithms are developed with the aim to identify potential risks and avoid them. Many organizations employ a Blockchain mechanism to organize their records. Blockchain requires a basic framework to identify risks associated with money transactions. AI-induced statistical models could help resolve this issue.
4. Smart Contracts
How great it would be if transactions take place without human intervention? It would save more time and efforts. That is why Blockchain is already being used to propose such contracts. The so-called smart contracts can be executed fully or in parts. The main advantage of using these smart contracts is that they reduce the moral complications. Smart contracts using Blockchain technology ensures automated escrow (third parties involved in transactions). AI when combined with Blockchain technology can amplify the automation of these escrows.
5. Supplychain Logistics and Supplychain Management
Blockchain technology has found its profound application in Supplychain activities also. For example,
IBM is using a Blockchain-based tracking device called Everledger. The IBM cloud is managed already bya Blockchain-based system for Supplychain monitoring. It’s sharing its resources with Walmart. This sets the path for other organizations to adopt such a system already. Along with blockchain technology, logistic companies also need aircraft ground handling. When we combine AI along with Blockchain systems here, administering these systems could become easier to handle.