Blockchain and AI- How they are strong together?

Technology is developing each day. With the goal to make lives better, there have been major developments in software technology over the last two decades. This has made technology an inevitable part of our modern lives, where the normal everyday chores are improved using technologies, for example, Artificial Intelligence and Blockchain.

In spite of the fact that these developments have covered a long distance, yet there is still a scope for development and enhancement. Here, we will  see two such major technologies: Blockchain and AI. They are the latest tech buzzwords to find the possibilities of a better future having them clubbed together.

Before we explore the possibilities of using their powers combinedly, we should have a thorough understanding of them as individual technologies.

What is Artificial Intelligence (AI)?

Artificial Intelligence

Artificial Intelligence is the technology that has helped the computers (machines) to stimulate and depict a human-like intelligence. The machines mimic the cognitive abilities to show human-like behavior.

The main purpose for development of Artificial Intelligence is to give a customized feel to computer-oriented functions. Simultaneously, it also focuses to decrease the dependencies on human assistance, by using advanced computer based operations for the decision making.

AI is developed to help experts in different fields by rendering the logical decision making services at larger scales. It is just because of the advent of AI that software, can offer a highly customized service to the end users. The whole concept of software assistants like Alexa, Google Assistant, Siri or Cortana is based on the basics of AI.

Applications of Artificial Intelligence-

Artificial Intelligence is a wide field of technology that has been successful in improving the tasks over various areas spanning from architecture, construction, e-commerce, education, healthcare, advertising to software assistants and smart household.

Artificial intelligence functionalities are used in different applications of AI to improve the business operations. While the reactive machines and limited memory are the basic types of AI functionality that are largely observed as real-life applications, the Theory of mind and Self-awareness are yet to be explored to release the real power of AI.

Applications of AI in different industries:

1. E-Commerce-

E-commerce portal tracks their users’ activities to show more customized proposals for them, according to the predictions of user behavior pattern that are made using AI. This brings out the products that the customer may need, improving the chances of them buying them out. Artificial intelligence allows E-Commerce to use the power of data analytics to upgrade the user experience and increase the sales figures.

2. Healthcare-

Artificial intelligence has made Healthcare industry more strong by helping them provide over the counter solutions to the patients at a scale. It stores and deals with the patient’s past medical history and uses them later to analyze and help in the diagnosis and treatment, helping doctors and medicinal experts.

Artificial intelligence has not just limited itself to the diagnosis and treatment but has also come with prosthetics that help the amputated individuals lead a normal life. It has also speed up the research in medicine by ruling out numerous irrelevant combinations that probably won’t yield favorable.

3. Gaming-

Strategic online games, for example, chess, poker, tic-tac-toe, and so on use AI to think about the next position dependent on the heuristic knowledge about the rules and combinations of the game. This gives the player an intense challenge, upgrading the gaming experience by making it more interesting.

4. Retail Stores-

Using AI Retail stores have been effective in tracing the buyer’s behavior to upgrade the general shopping experience by offering personalization by recommending favored products to the buyers. A good buyers’ experience ensures better sales and more customer satisfaction.

What is Blockchain?

Blockchain is an open and distributed leader that is capable for recording transactions between two parties effectively. It is the technology behind the well known cryptocurrencies. Blockchain safely records and manages online records that are sensitive and need the most extreme security by using cryptography. It contains a chain of different blocks as the name suggests that is traceable and connected with one another in a sequential way.

Blockchain offers protection from the modification of the data, making it profoundly secure and hack-proof. It completely exists on the cloud and is exceptionally decentralized in nature. 

Also know- Top 10 Blockchain Programming Languages for 2019.

Applications of Blockchain-

Blockchain has been one of the reliable methods for storing transactions data. Although Cryptocurrency has been one of the early adopters of this technology, different industries, for example, Banks, Healthcare, Real Estate, Supply Chain, IoT etc are also looking up to Blockchain for recording their transactions.

Real-life applications of Blockchain:

1. Cryptocurrency-

Bitcoin is the pioneer to use Blockchain technology effectively in the cryptocurrency sector, to ensure highly secure, encrypted transactions. Bitcoin and different Cryptocurrencies work in a decentralized way over the globe using blockchain.

2. Healthcare-

Patients’ medical records are properly kept in a much traceable way using blockchain where they can be retrieved and used anytime. Blockchain also ensures that the records can’t be manipulated maintaining accuracy that helps in better diagnosis and treatment.

3. Supply Chain-

Having maintained supply chain records using Blockchain ensures the authenticity of the records, simultaneously, they can be effectively accessed by the various parties involved for a streamlined functioning.

4. IoT (Internet of Things)-

As IoT embeds the internet in the devices to send and receive data, Blockchain improves the accessibility of records and also maintains privacy and security of the data with encryption.

Having listed the various applications of Blockchain, it is also vital to understand the decentralization and complexities that underlie in a Blockchain system, making it important to question the authenticity of the Blockchain requirement for your application.

Do you really need Blockchain?

To answer this observe the criticality of the data transactions that your system handles. Also if you would require these transactions later on, intact  with no manipulations?

If yes, then Blockchain is the technology you have to record your transactions securely, else not.

What Blockchain and AI together looks like?

Blockchain and AI seem to be YinYang to one another, who are complete opposites in the manner in which they operate. While AI is a highly centralized technology, Blockchain, then again, is a decentralized one, where the records are stored in the form of distinct blocks.

But, together they combine to form Decentralized Intelligence: a strong two-edged alliance offering efficiency and security, both simultaneously. While the AI ensures high proficiency of the system with its decision making power, Blockchain ensures that the data transactions of the system are well handled providing extreme security.

Together they have the power to change the manner in which things worked. While the computing lets you take a leap in terms of performance, blockchain offers you the traceability, where you can track the transactions, without having the risk of them being manipulated.

But, so as to understand how the two popular technologies can change the landscape for good, let us weigh the benefits they yield once combined.

Blockchain and AI: Benefits-

Blockchain and AI together have many benefits. While AI gets more authentic data that could advance the system, it turns into much increasingly effective. Blockchain makes the computers on the network cluster, which can help the AI with faster processing because of more resources.

With these advantages, the framework you get is a 2.0 version. It is more effective and secured because Blockchain and AI complement each other without interference.

Where can we apply Blockchain and AI together?

Business use cases where you require critical decision-making and cognitive abilities, simultaneously, an exceptionally reliable and secure record keeping system where the information remains immutable, are the places that are ideal for applying the combination Blockchain and AI.

Use cases where the transaction history plays a significant role in the current decision making traceability of data with accountability timeline essential could be the best applications of Blockchain and AI.

Future of Blockchain and AI together-

Although the Blockchain and AI are two sides of the technology spectrum. However, when they come together, their complementary nature, improves the system in general. This makes it more reliable and secure. And hence there is a hope for a bright future that could change the landscapes of various industries for good.

However, to use this combination ideally, a lot has to be explored, as the extensive research right now daily when you can use this combination at its best.

Bottom Line-

These are some basics about the Blockchain and AI together. Are you thinking of incorporating a combination of these technologies into your next project? You can consult with Solace Experts. We have dedicated team to give you the best solution as per your requirement.

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