Artificial Intelligence (AI) and Blockchain have emerged as two of the most era-defining and paradigm-shifting technologies in the recent past. While as standalone technologies they already made a big impact, together they are predicted to be more impacting than ever before. Blockchain and AI together can have great impact on different facets of life and business.
While Blockchain AI for mobile apps, app marketplaces and predictive models used for hedge funds and equity investment has already become a reality, AI can really play a great role in optimising the investment management platforms. There are obviously several other ways these two technologies to come together and deliver a never-before Impact. Here through the length of this post, we are going to explain how Blockchain and AI together can promise a new technology revolution.
The Blockchain Help for Artificial Intelligence
For effective implementation of artificial intelligence, a vast amount of data representing different aspects need to be analysed and put under the scanner. Data is the raw material for the AI models to work effectively and deliver insights that matter. This is where Blockchain security comes into play. Blockchain distributed database holding together a variety of data sources makes handling and access to data easier while completely ruling out the possibility of data theft and data tampering.
The data residing across multiple computers on different networks actually make it really impossible for the hackers and malware to destroy or tamper data just as they do with centralised servers. On the other hand, with just a “write-only” protocol Blockchain never allows deleting or changing the data once registered. Thus for AI-based data analytics and modeling to benefit businesses, the distributed and fully tamper-proof database system will continue to help.
- Artificial Intelligence (AI) Help for Blockchain
While Blockchain decentralised databases help to secure the data and making data accessible with a never-before efficiency and ease, AI systems can also help to manage blockchain networks with an optimum promise of efficiency and output.
For instance, still to transfer the Bitcoin to someone sharing the same network, several days of time is required. Thus, a big increase in the transaction of bitcoins or similar cryptocurrencies can actually result in more delays. This is where AI-driven models can make things easier. AI with its astoundingly high-speed computing prowess and robust capability can reduce the data processing time and help boost the speed of transactions with Blockchain-based cryptocurrencies.
- While Specific Ways AI and Blockchain Can Benefit Each Other
While there is great hype about the future role of Blockchain and AI if they really work together for different user contexts, we need concrete explanation and examples to understand the actual impact and how it is going to happen.
Let’s explain 3 key ways AI and Blockchain can play a complementary role for each other.
- AI and Data Encryption Complement Each Other
We all know that at the very heart of data security promises by Blockchain, there is an advanced encryption technology. We call this encryption technology as Cryptography. In spite of being a distributed database Blockchain is ideal for storing and saving all sorts of sensitive and mission-critical data and protect them from all sorts of tampering efforts.
On the other hand, the promise of AI mainly concerns utilising the potential of the data for relevant communication, interactions, and collaboration. Since, unencrypted data poses a significant threat to the data analytics engines and AI modeling, the cryptographic data security ensured by Blockchain delivers the right safeguards and security measures.
- The Role of Blockchain to Understand and Explain AI-Based Decisions
AI decisions often need an explanation for clear understanding. Without the different aspects of the AI-powered insights and decisions, the businesses often cannot utilise the AI algorithms to their fullest potential. For example, the AI decision to investigate or block some transactions because of the chances of fraudulent activities may need explanation and a detailed understanding of the management and executives.
While auditing AI-based decisions, organisations may need to work with a large volume of data that further aggravates the data management challenges and security concerns. This is where Blockchain can play an important role in managing huge volumes of data with a decentralised ledger while allowing easy, encrypted and secure access.
- AI is Capable to Manage Blockchain More Efficiently
Computers in spite of their faster processing capability and responsiveness to commands have always been stupid and dumb enough to depend on the human commands. For Blockchain management, human commands using the regular computers can actually take a hell lot of time and energy to access data and draw data-driven insights. This is where AI can play a positive role by taking control of computing from humans. For instance, already the intelligent hashing algorithms mine the Bitcoin Blockchain data by exhaustively trying all combinations until they find the right one.
For cracking the codes for faster access, the future intelligent algorithms actually can use more intuitive and insightful methods. The algorithms of the future powered by Machine Learning technology can help to crack the cryptographic codes faster and more easily to make the process smoother.
AI & Blockchain: Apps Boasting the Power of Both
After explaining the power and promise of the AI and Blockchain taking part in single data-centric operation and tasks, we need to have a look at some real-life examples of applications using the power of AI and Blockchain.
SingularityNET is an organisation based in Amsterdam that offers a great marketplace for AI algorithms. The platform allows AI developers and development companies to market their AI-powered software and hardware solutions in exchange for payment in cryptocurrency or other AI-based solutions. The platform makes exchange among various businesses and developers possible through blockchain-based smart contract technology.
Some of the services the platform allows to sell and buy include image and video processing, language processing, providing curated datasets to train AI models, etc. In spite of being still in the nascent stage, as of now, the platform raised huge fund in the crowdfunding platform amounting $36 million within just a few minutes of time. It showcases one of the top examples of the success of the dual force of Blockchain and AI technology.
- DeepBrain Chain
DeepBrain Chain is a Singapore based non-profit organization with just then two dozen-plus employees that already built a distributed AI computing platform by using both the Blockchain and AI. DeepBrain Chain in its whitepaper mentions the company objective of creating an open marketplace for all types of AI computing resources.
DBC platform is also open for companies and developers to make their datasets available for commercial trading or community sharing to strengthen the artificial neural networks.
Numerai founded in San Francisco in 2015 has established as a robust AI-powered Blockchain platform for delivering sophisticated prediction models based upon trading strategies of various companies. The platform is part of a hedge fund algorithm building effort that allows developers to join for specific development inputs.
Numerai for evaluating the predictive skills concerning their hedge fund performance also conducts data science competition. The data scientists need to submit their predictions regarding the performance of the fund in the week ahead. According to Numerai, the company actually synthesized different valuable features from other leading models to come with a robust and powerful collective AI model to ensure unmatched predictive excellence for their hedge fund management.
Peculium based on Luxembourg is an AI and Blockchain-powered investment platform that started its journey from 2017. With an asset management solution that according to the company can be used for different degrees of autonomy the platform is well suited for professional individual investors and large investment firms and global corporations as well as stockbrokers. For investors, the company has already developed a fully AI-powered digital advisor called AIEVE. This solution by using machine learning is capable to learn about the market trends and investment scenario based on the historical market analysis and reports.
According to the company, the data analysis of the company covers a wide variety of content sources including real-time financial market reports, cryptocurrency market trends, published journals and books, the news media, online research, etc. This AI-powered digital advisor can communicate and make reports in 8 international languages. The company also has a platform called Atreus which is basically an investment platform for large corporations. It uses smart contract technology to deal with the transactions.
The promise of the joint power of Blockchain and AI is huge and literally era-defining. Blockchain-powered with AI can really make data accessibility, algorithmic efficiency, and precision-driven decision making easier than ever before. Obviously, the coming of these two technologies just started with mainly marketplaces and applications for techies and investors. But, soon their combined effect can be found across other niches.
Author Bio: Atman Rathod is the Co-founder at CMARIX TechnoLabs Pvt. Ltd., a leading web and mobile app development company with 13+ years of experience. He loves to write about technology, startups, entrepreneurship and business. His creative abilities, academic track record and leadership skills made him one of the key industry influencers as well.
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