With the discovery of Bitcoin, which runs on a blockchain background, the global currency systems were ready for a major rehaul. A public ledger where each transaction is secure and verified on a peer-to-peer network was set to unshackle the atypical centralised control of financial institutions. Moreover, increasing progress of AI, AI and Blockchain together can increase security and decrease the monopoly of data.

The Bitcoin or crypto supremacy era coincides with the preponderance of Artificial Intelligence (AI), paving the way for AI Blockchain synergy. AI educate machines to think and act like humans by making these machines process tonnes of human-generated data.

The two revolutionary technologies, AI and Blockchain, are shaping the world today. These two technologies are distinct from each other. However, when they complement each other, they have tremendous effects in the fields of security and help create immutable records, help in data privacy enhancements, help in predictive modelling, and facilitate inventions and developments of other technologies.

Role of AI in integrated AI and Blockchain

Enhanced Security

Cryptocurrencies are secured through blockchain ledgers. AI can enhance security by detecting and predicting any fraudulent activity by analysing vast amounts of data in real time.

Enhanced Scalability

Blockchain technology is based on a distributed ledger, where each transaction on this backbone gets peer-verified by a series of nodes. When AI is introduced to felicitate peer verification, then the process becomes faster. The system must operate with incredible speed to make the use of cryptocurrency possible daily on a large scale. Therefore, the speed of transactions has to be optimised with market demand with the help of AI.

Saving Energy

Data mining is a tedious task that involves searching and analysing patterns in a large set of raw data to find useful information. AI can help blockchain systems reduce time and effort in data mining, which consumes tremendous energy and thus saves energy.

Use Of Predictive Powers

Cryptos are volatile assets, implying that their price can witness mega swings in a very short period. In such volatile markets, time is money, and making the right decision to buy or sell a currency is critical. AI-powered systems can collate, comprehend and analyse real-time buzz from social media and go through news articles and financial reports of top corporate houses to make decisions quicker and more accurately than humans.

Further, AI-driven analytics can be used to create high-utility decentralised applications (DApps) that may be very useful in ensuring supply chain transparency, creating better games, etc.

Role of Blockchain in Integrated AI and Blockchain

Data Storage

AI-based apps like Siri store old commands of the owner to train the AI model better. Now, this plethora of information is sent to data centres, which poses a significant threat to the safety of the data. Hence, data from AI-based apps stored on a blockchain network protects the sanctity of the data.

AI and blockchain systems in data distribution

An AI model contains vast amounts of data that are stored in a centralised manner. At times, some data may become inaccessible due to authentication and privacy-related issues. In such cases, the AI response may be inaccurate or incomplete.  In order to avoid such issues, the AI data can be stored on a blockchain network. Thus, the data is accessible in real-time from the decentralised blockchains, and the owner’s monopoly is removed.

Decreases monopoly of data

Many people dislike using AI apps and software due to the lack of authentication, inaccurate responses, and owner’s monopoly of the data. But when the foundation of AI apps is blockchain networks, authentication is by stakeholders, and data is more accurate. Thus, there is a minimum scope for data monopolisation. Hence, people trust these apps more due to greater transparency resulting in the popularity of the app.

Final Words

AI and blockchain technology are evolving fast; when used jointly, they can bring about revolutionary changes. For instance, medical records will be kept safe, and people will own the data and be able to share them with anyone. Similarly, in a retail business, one can check the data to find out what factors affect the success or failure of their marketing plans.

Lastly, the monopolisation of data by any individual or organisation is nearly impossible in blockchains. As a result, the monopoly of big organisations like Google, Amazon and others will diminish.