Most people associate blockchain with cryptocurrencies such as Bitcoin and Ethereum, but that’s like thinking the internet is only a search engine.
At its most basic, blockchain is a digital record of transactions. The technology decentralizes data storage, allowing data to be owned and handled by several parties rather than a single governing authority.
However, while blockchain and artificial intelligence (AI) may seem like something out of a movie, they are actually revolutionizing the financial services industry right in front of our faces.
Blockchain and artificial intelligence (AI) are the two most important and growing technologies. Blockchain is adaptable and simple to use, whereas AI has overcome all of its limits in terms of testing performance in labs. Both are rooted in contemporary technical breakthroughs, but their origins are different.
Blockchain is a shared and permanent ledger that will be utilized for data encryption in the future. The AI engine, though, allows a person to assess and make judgments based on the collected data.
It is important to note that each technology has several facets, but the combination of both technologies will play a significant role.
What role does blockchain play in AI?
Data management can be provided using blockchain. Since AI algorithms require a large quantity of data to train and learn, blockchain can provide a safe and transparent method of storing and managing data.
The distributed ledger technology of blockchain can verify that data is not tampered with and that the data source is verified and trustworthy.
There is also the issue of data sharing. Without the need for a single middleman, blockchain can enable secure and transparent data sharing among numerous parties. This is useful in situations where several parties must collaborate on AI models or share data for training.
Model Governance. As AI models become more complex, it becomes more difficult to manage them successfully.
The technology can provide a transparent and auditable method for governing AI models and ensuring that they are utilized ethically and responsibly.
Decentralized AI. Blockchain can provide decentralized AI networks in which nodes contribute processing power and data to cooperatively train AI models. This can result in faster and more efficient AI training, as well as aid to democratize AI.
Ultimately, the technology can help increase the trustworthiness and openness of AI systems by providing a secure and transparent means to manage data and control AI models.
Where this has been applied
AI is assisting businesses in analyzing patient data to obtain actionable insights using patient data stored on it in the form of electronic medical records (EMR). AI-powered data can be utilized to forecast and enhance patient health outcomes.
In a variety of ways, the pharmaceutical business is leveraging the capabilities of blockchain and AI. These include programs to detect fake drugs, obtain consent for clinical trials, validate data, and collaborate on machine learning projects to better comprehend the biological effects of tiny compounds.
The technology enable supply chains to securely trace components back to their origin. Several businesses also share supply chain data through consortium networks that employ big data to give intelligent solutions to collaborating vendors.
Artificial intelligence is fueling solutions for automating loading ports, demand and supply analysis, and quality control systems for transported commodities.
Furthermore, AI is paving the way in the financial business, with numerous blockchains employing AI to optimize operations.
Detection of fraud, credit risk evaluation, customer relationship management, account security, and regulation are some of the use cases in this area.
Using AI in conjunction with blockchain has enabled banks and small businesses to scale up their operations while reducing operating expenses rapidly.
Don’t miss important articles during the week. Subscribe to blockbuild weekly digest for updates.