The real benefit of Bitcoin is not in its monetary value but in the power that drives it. Blockchain technology has the ability to change the entire banking system. It can eliminate the need for banks, state agents, stockbrokers among others and allow people to manage their assets easily. But for this to be achieved, a lot needs to be done for us to realize the full potential of blockchain technology.
According to experts in the blockchain industry, the introduction of AI into blockchain can help create more business opportunities. The merger of AI and blockchain can bring about a reliable and foolproof technology that can make blockchain more efficient.
Hereunder are some of the applications of AI and how it can impact the blockchain industry.
The convergence of AI and blockchain can help create a reliable and foolproof technology for the regulation of machines. Blockchain plays a significant role in a distributed system. It helps to in making a tamper-proof system when the nodes are not built with a foolproof system. The AI technology, on the other hand, will help in identifying the patterns in the nodes by predicting the final result. This way, AI will help blockchain to equally distribute all the necessary data that should be on the blockchain.
According to CoinTelegraph, AI technology can also give a mechanism through which the blockchain can regulate the autonomous entry of smart contracts. Furthermore, it “emphasizes a future where standards are defined around what AI has to write to the Blockchain”
Smart Contract Testing
According to SingularityNet, AI has a crucial role in the testing of the smart contracts. For examples, when the AI is used, it helps the blockchain to work better by keeping copies of all transactions. “A decentralized protocol for accessing a network of AI algorithms and agents is an open-source protocol.” AI enables the blockchain programmers and developers to add “an AI service for use by the network and receive network payment tokens in exchange.”
According to Francesco Corea, a technology investor and AI evangelist, AI can play a crucial role in data security on the internet. Blockchain technology is known to be a very secure technology, with the integration of AI it can help lower the storage of data and instead increase the AI emergence.
AI can help to give a clear track of blockchain’s smart contract transactions by giving an audit trail of the data. This way it will help improve the security of any data. According to a publication by the University of Johannesburg, “the Bitcoin blockchain system uses elliptic curves based on private and public key generation. But there has been the development of a public-key algorithm which is tamper-proof. According to the researchers, intelligent search algorithms can be used to search the bits of a secret key.”
Most importantly, the merging of blockchain and AI will help make the data openly accessible to all in the network. This will greatly reduce the hoarding of data on the internet. Some companies such as Dopamine.ai, Effect.ai to mention just but a few are already working on this to make the data more decentralized with the help of AI to make it an open data environment.
According to Ronald Van Loon, an expert in AI, “merger of blockchain and AI can lead to greater security to trust by creating reliable systems. The future of AI development lies on a network that allows free flow of information between connected users and operators. The decentralized nature of Blockchain technology means that this could be the platform where we will see the most breakthroughs on AI.” He emphasized in his blog.
Blockchain and AI are being coupled to help in the data security analysis. Depending on the data analysis, a prediction can be made on the security of the data. Currently, there are several companies that are using blockchain and AI in their services. Some of the major organizations that are using AI and blockchain include Microsoft and IBM among others.
IBM is merging blockchain and AI through their Watson Internet of Things group. “The artificially intelligent blockchain lets joint parties collectively agree on the state of the device and make decisions on what to do based on the language coded into a smart contract. Using blockchain technology, AI software solutions are implemented autonomously. Risk management and self-diagnosis are other use cases being explored…. The confluence of blockchain and AI will make data accessible to everyone on the open distributed network, thereby bringing an end to the data hoarding trend led by big tech web companies.”