How can Blockchain and AI complement each other

By Alankar Saxena

Artificial intelligence (AI) and blockchain are two important and rapidly developing technologies in modern times. AI is a field of computer science that enables machines to perform tasks that traditionally require human intelligence. In contrast, blockchain is a decentralized ledger that provides a secure and transparent way to store and protect data. Although both technologies serve different purposes, they have the potential to revolutionize our lifestyles and work practices when integrated. Let’s start by learning about each of them to better understand how they can change our lives.

What is Blockchain Technology?

Blockchain technology is a decentralized digital ledger or a digital ledger that collects and stores information securely and transparently. It works like a block chain where each block contains a set of data linked to the previous block in the chain, creating a permanent record that can neither be deleted nor changed.

For example, consider a blockchain-based system for tracking the ownership of a piece of land. Every time the land is sold or transferred, a new block containing the transaction details is added to the chain. This creates a permanent and transparent overview of all ownership changes, which everyone on the network can confirm. As a result, it becomes much more difficult to commit fraud or falsify ownership records.

What is AI technology?

Artificial Intelligence, or AI, is a technology that enables machines to perform tasks that would typically require human intelligence, such as learning, problem solving and decision making.

Think of Siri or Alexa, the virtual assistant that we use every day. It is nothing but AI technology. These assistants can understand and respond to human voice commands and learn and adapt to user preferences over time. They use machine learning algorithms to analyze data and make predictions or recommendations without human intervention.

How can Blockchain and AI transform the world?

AI has been instrumental in boosting industry and driving growth, while blockchain has been extremely versatile and is transforming encryption and the use of data. Although they are different, they can work together differently to change the world.

Improving transparency in the supply chain

Companies can use technology to improve their supply chains by using blockchain and AI together. Blockchain is like a digital ledger that can track every step in the supply chain, from the raw materials used to make a product to the finished product itself. This can help businesses keep track of their inventory and ensure they use sustainable and ethical practices throughout the manufacturing process.

AI can then analyze this data and identify areas where the supply chain can be improved. For example, AI can identify a supplier that consistently delivers raw materials late, causing production delays. By addressing this issue, companies can improve their efficiency and reduce waste, to the benefit of all involved.

Helps manage health data

Blockchain is a technology that allows data to be stored in a secure and decentralized manner, so that it cannot be easily tampered with or accessed by unauthorized persons. In healthcare, this means that patient data can be stored on a blockchain, where it is encrypted and protected. This data can include things like medical records, test results, and treatment plans.

AI, or artificial intelligence, is a technology that can analyze large amounts of data and identify patterns or trends. By combining Blockchain and AI in healthcare, doctors and researchers can access this data and use AI algorithms to analyze it.

For example, they can look for patterns in patient symptoms or test results to identify a disease or condition earlier than they otherwise would have been able to. This can lead to more accurate diagnoses, customized treatment plans and ultimately better patient health outcomes.

Helps financial services identify fraud

A decentralized system means that there is no central authority controlling it. Instead, it is operated by a network of computers. Blockchain technology can be used to create a decentralized system for handling financial transactions, which means that all transactions are recorded on a secure and transparent ledger that everyone can see.

AI can analyze these transactions and identify potential fraud or risk. For example, suppose there is suddenly a large transaction on an account that has never had such a transaction before. If so, AI can flag it as potentially suspicious and alert the appropriate parties to investigate it further. This helps prevent fraud and ensure that financial services are secure.

The combination of Blockchain and AI can make financial services more efficient, secure and accessible to people who lack traditional banking services. For example, in some parts of the world, people do not have access to banks, but they do have access to mobile phones. Blockchain technology can be used to create a decentralized financial system that operates through mobile phones, while AI can be used to ensure that the system is secure and to prevent fraud.

Conclusion

Overall, the integration of two modern technologies, AI and Blockchain, can help industries offer better services and products to users in a more secure and transparent manner.

The author is CTO, co-founder, Mudrex, a crypto investment platform

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