Blockchain and AI: a Powerful Combo in Digital Transformation

Separately, AI and blockchain are both popular trends in tech. But have you ever heard of their combination?

In this article, let’s discover why these two concepts are a perfect duo in technology with TECHVIFY Software. And see how your business can make use of this trend.

What is blockchain technology?

Blockchain is a system that acts as a public ledger of transactions, recording information to make it difficult or impossible to change, hack, or cheat the system. This allows users to achieve the security that protects them from data modification.

Each of the blocks is connected to the previous block, creating a chain of connected peer-to-peer networks. The information will be duplicated and distributed across the entire network of computer systems on the chain.

There are two major classifications in blockchain technologies: PoS and PoW. PoS is largely seen as a largely scalable version of the Proof of Work (PoW) consensus commonly used in Bitcoin, which utilizes significant energy expenditures.

What is AI?

AI, or artificial intelligence, is known as the ability to simulate the human intelligence of machines. These machines are developed to compute to work like humans and complete their actions. This technology refers to any machine that exhibits human traits related that involve learning and problem-solving.

It integrates the precise working behavior of machines with flexibility in analyzing and solving problems of human minds, Aiming at an intelligent, error-free, and flexible system.

How do they support each other in digital transformation?

PwC has predicted that by 2030, AI will add up to $15.7 trillion to the world economy, and as a result, global GDP will rise by 14%. Meanwhile, according to Gartner’s prediction, business value-added by blockchain technology will increase to $3.1 trillion by the same year. So how do these two hot trends support each other?

Blockchain has many security, scalability, and efficiency issues, while AI’s main issues are explainability, trustworthiness, and privacy. So when combined into one system, they work as each other’s perfect match:

• Blockchain for AI (confidentiality and privacy)
• AI for Blockchain (Security and transparency)

Together, they create the machine learning concept and a store of transactions that is secure, private, and capable of changing how the world manages governance, security, and trust in finance.

What benefits do AI and blockchain have to offer?

AI and encryption work very well together

Blockchain databases hold their information in an encrypted state. This means that only the private keys must be kept safe in order for all the data on the chain to be secure.

On the other hand, an emerging field of AI is concerned with building algorithms that are capable of working with data while it is still in an encrypted state.

As any part of a data process that involves exposing unencrypted data represents a security risk, reducing these incidents could help to make things much safer.

Blockchain can help us track, understand and explain decisions made by AI

Decisions made by AIs can sometimes be hard for humans to understand. If decisions are recorded on a blockchain, it makes it far simpler for them to be audited, with the confidence that the record has not been tampered with between the information being recorded and the start of the audit process.

AI can manage blockchain more efficiently than humans

Traditional computers cannot get them done without explicit instructions on how to perform a task.

Therefore, when operating with blockchain data on traditional computers, it requires large amounts of computer processing power to really exploit all the benefits of the tech. In that case, AI, as a more intelligent and thoughtful manner approach, is here to give a hand.

A machine learning-powered mining algorithm would tackle its job by cracking more and more codes. That scope usually requires an expert who has spent his whole life practicing, but with AI, it could almost instantaneously sharpen its skills with the right training data.

In short, it is no doubt that blockchain and AI are two ground-breaking technological trends that have been proven to have more revolutionary potential when put together.

Just like Yin and Yang, they support each other seamlessly to conduct a flawless job. So, make sure your businesses have been armed with the proper technology to gain the top rank in the digital transformation race.