The growing integration of blockchain and artificial intelligence

Blockchain is undoubtedly a genius invention in the world of modernization. The concept of block chain was first introduced in 2008 by Satoshi Nakamoto (pseudo name). It has added a layer of security and transparency into the process of several industries including healthcare, mobile app, real estate and finance etc. And as a result it has become one of the most beloved technology by the monopolists and customers. Now the question arises is: what is blockchain and artificial intelligence? Let’s have a look towards it.

Brief description of block chain

In simple words, Block chain is a new way to store and make transactions without any third party involvement. The idea of block chain is very uncomplicated and easy. It is the technology that encourage digital currency such as bitcoin and lit coin. You can describe it as a digital ledger stored in a distributed network. Each block of block chain contains a unique code called a hash and it also contain the hash of the previous block in the chain.

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Now if we talk about artificial intelligence it also made a huge impact on the business world. The technology has refurbished the conventional businesses and improved customer experience. And just like block chain it has also becomes the core part of different businesses such as finance, travel, healthcare or mobile apps. Let’s have a look towards the definition of AI (Artificial Intelligence).

Brief description of artificial intelligence

Artificial intelligence is a concept of modern technology in which computer systems possess human like intelligence which includes speech recognition, it gives power to the computer to make decisions and also it helps in translation of languages. The machines imitate the intellectual abilities to exhibit human like behaviour. AI is a software that provide highly personalised service to the users. Some examples of AI are Alexa, google assistant, Siri or cortana.

Integration of blockchain and artificial intelligence

The development of human being couldn’t have been possible without the advancement in technology. Technology is having a major role in making business sectors more efficient and qualitative and it’s not just about business anywhere in the world and in every field of human life it has created its huge impact. Blockchain and artificial intelligence are the best examples of latest technology as a result despite of having extremely different developing parties and applications researchers have been trying exploring their combinations. Let’s discuss the benefits of block chain and AI.

1. AI and encryption perform great together – Cryptography is the great feature inherent in block chain system. This means block chains are ideal for storing the sensitive and personal data which when smartly processed can unlock so much value and convenience in our lives.

Block chain databases hold their info in an encrypted state that means all your highly sensitive data and private data is completely secure. An emerging field of AI is concerned with building algorithm which are capable of working with data while it is in encrypted state. As any part of a data process which involves exposing unencrypted data represents a security risk, reducing these incidents could help to make things much safer.

2. Block chain can help us track, understands and explain decisions made by AI – Block chains makes us understand the decision made by AIs as sometimes it seems hard to understand for humans. No matter how clearly we can see that AI offers huge advantages in many fields, if it isn’t trusted by the public its usefulness will be severely limited. Recording the decision making process on block chains could be a step towards achieving the level of transparency that must be very much needed in order to gain public trust.

3. AI can manage block chains more efficiently than humans (or stupid conventional computers) – Traditionally computers have been very fast but very stupid. Computer system requires a huge amount of processing instructions to perform a task. AI is an attempt to move away from this brute force approach and manage tasks in a more intelligent and thoughtful manner. Let’s talk about human expert who crack codes they improve every time and become more efficient from good to better to excellent at code cracking and he will crack vast number of codes throughout the career.

A machine learning powered mining algorithm would tackle its job in a similar way although rather than having to take a lifetime to become an expert, it could instantly brush up its skills and will provide the right training data. Now after discussing features which blockchain and artificial intelligence share let’s move towards to understand how block chain technology will transfigure artificial intelligence.

  • Free data enterprise – As AI undergoes advancements, it becomes dependent on the available data that comes from several source. Although large companies like amazon, google and facebook have a massive source of data, which can be advantageous for developing AI applications, it is not available in the open market. Combining these two trending technologies i.e. block chain and AI will help to address issues quickly and will integrate peer to peer connections. As it is distributed and open registry everyone belonging to the network can easily get access to the data.
  • Handling data on a larger scale – when the data is available, the most challenging task is to scale it. There is a subfield of AI which is known as artificial general intelligence which can be structured as a feedback control system. This feature helps autonomous person interact do better interactions with physical environment. In case any natural disaster hits the business the data will not be remaining in a single location. This ensures the safety of large amount of data in the decentralized systems.
  • Supervise data usage – This indicates that the block chain network will give you the permit to use the data or use the same, as it is considered as an asset. Similarly when coins are transferred on crypto currency platform one can also transfer the permit to access data present on that network. When you integrate block chain and AI together it will become amazingly easy to control the use of data.

Conclusion

Both blockchain and artificial intelligence have been well-received in recent years. So people are looking to merge this duo as it will result in the much needed mechanism to power intelligent system in the future.

The concept of integrating AI and block chain is no doubt a work in progress. Major economies seeking to lead the way in terms of innovation had already launched several initiatives that aim to combine both technologies, confident that the result would deliver acceleration across a variety of fields. There is no doubt that AI and block chain are two different trends that are changing the world in their own rights.

Given their respective strengths and weakness, the experts are confident that integrating them would result in a world with improved oversight and accountability as well as limitless opportunities and connecting them will create massive synergies.

Blockchain and AI are 2 extreme sides of the technology spectrum; one fostering centralized intelligence on close data platforms, the other promoting decentralized applications in an open data environment. However, if we find an intelligent way to make them working together, the total positive externalities could be amplified in a blank.

A very popular quote by Santosh kalwar – Life is an experiment in which you may fail or succeed. Explore more, expect less…same goes with this integration keep experimenting and hope for the best!


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About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver