Building real world applications with Blockchain & AI

By and large, we are living in the age of interdependence. The emergence of innovation and dependence is enabling businesses and people to bridge the gap and ensure security and pave a way to a future that was beyond imaginable a few years back, but not anymore. Blockchain and AI are powerful independently, but when they come together, they have the potential to break barriers and overcome complexities that they alone couldn’t. 

Businesses are collecting humongous data from IoT devices and social media. AI integration turns that data into insights with more accuracy and at a faster rate, and Blockchain assures security and privacy.

The indispensable pair

Machines are built, and they learn to perform intelligent tasks without any human assistance through Artificial Intelligence. They are made artificially smart and independent so that they can sense information, and learn from tonnes of data. That knowledge is used or applied to offer services and conduct operations. With AI, there come enhanced data management capabilities, data-centric predictive analysis, development errors are minimized; people experience real-time assistance, and assistance with data mining. Artificial intelligence (AI) promises genuine human-to-machine interaction where machines can reason, observe, and plan.

Put simply by Sally Davies, FT Technologies Reporter - Blockchain is to Bitcoin as what the Internet is to Email. Blockchain is a decentralized and distributed ledger or database across a network of computers that records and stores data with reduced chances of security breaches. This technology is safer, optimizes transparency, ensures data privacy, and is faster compared to other centralized technologies. Originated from Bitcoin, and has now demonstrated its potential in numerous domains.

These two, AI and Blockchain, mutually benefit one another. AI requires massive amounts of data to learn and make insightful decisions and fundamentally change the way Blockchain networks are managed to make them more efficient while Blockchain is a useful way of storing data securely. 

How AI is impacting Blockchain

These technologies have made their way into our lives through cryptocurrency, chatbots, personal assistance, and robotics. They have bought possibilities that are efficient in obtaining energy, improving scalability, security, and privacy. Blockchain does have its shortfalls in terms of scalability, security, and efficiency. AI addresses those challenges along with the others. 

Energy consumption

The considerable energy consumption comes as a big challenge for Blockchain, and Artificial Intelligence is capable of keeping a check on that.

Most blockchain technology follows bitcoin's infrastructure and uses Proof-of-work (PoW) as a consensus mechanism for validating transactions. These protocols demand complex mathematical puzzles to be solved and enormous computing power. The estimated Bitcoin transaction energy consumption is significantly high. Adding to that is the energy and cost used to cool down the computers.

To overcome this challenge, AI algorithms are being built that consume less energy. To support minimum consumption of energy, proof-of-stake (PoS) protocols were introduced, which included an algorithm to randomly assign the task of validation to a node and a combination of a participant’s stake in the network.

In April, a report by PwC and Microsoft suggested that across four key sectors – agriculture, energy, transport, and water – AI could enable a cut in global greenhouse gas emissions of between 1.5% and 4% by 2030, with its impact greatest in transport (up to 1.7%) and energy (up to 2.2%).

Source: Ethical Corporation

Enhanced Security

Even though Blockchain is by nature incredibly secure and tamper-proof, and the choice for storing sensitive and personal data but artificial intelligence with machine learning and deep learning uplifts the whole process. 

If you have heard of data markets, then you must be quite aware of the private data that is sold in those markets. Many of us rely on AI for a few cybersecurity solutions that it provides like intrusion detection, user behavior analytics, phishing and malware detection, and much more.

High Efficiency

AI can make sure that the resources are being efficiently utilized so that reduced latency is experienced and costs are minimized. It also entitles us to reduce the carbon footprint of blockchain technology. It turns out, the data on the blockchain network keeps growing every minute. Out of this, the information that would be needed for use in the future is automatically pruned by the AI’s data pruning algorithms maintaining high efficiency and productivity.

Real-world applications

The applications of Blockchain and AI are extraordinary but when combined they’re exceptional yet ample. Let’s read about a few of its many applications.

SMART CONTRACTS 

As we have seen, the implications of this technology for finance are highly disruptive. It includes consent, confidentiality, and financial transactions. Blockchain-enabled smart contracts exhibit the capability to exchange value without third parties getting involved. The exchange of value, goods, and services is now more efficient and secure. All thanks to artificial intelligence, cryptography, algorithms, or smart contracts. AI-enabled blockchain solutions will better analyze data sets from thousands of variables, and contribute to increase cyber resilience and optimize intricate interchanging of distributed energy resources by encrypting, monitoring, and automating transactions. 

HEALTHCARE

Impressive technologies are contributing to the medical world in ways one couldn’t even imagine. Healthcare organizations are doing their best to offer solutions and services that satisfy customer needs and, at the same time, reduce costs and improve outcomes by leveraging data. They are turning to Blockchain and Artificial Intelligence to blur the impediments that hinder the development of the healthcare industry.

94% of Healthcare Execs Say AI, Blockchain have Advanced Innovation. Adding to that, they also say that AI, Blockchain, and other technologies have increased innovation, but organizations must do more to meet consumer and employee expectations.

Source: Health IT Analytics

ROBOTICS TECHNOLOGY

We are well aware that Artificial intelligence powers robotics. It empowers them to learn and deliver excellence and efficiency as it has in chatbots, or voice-assisted technologies - Siri and Alexa. For efficient and effective RPA (Robotic Process Automation), businesses are relying on multiple technologies and not just one. This challenging field insists on producing and offering solutions that are customer-satisfactory. With automation multi-fold, Artificial Intelligence mushrooms the efficiency of robots while Blockchain offers data immutability that ensures that the operations are tamper-proof. Together, the operating pathway of these technologies helps achieve the desired goal.

The most significant use of this pair was in Swarm Robotics, where these were used to control a group of robots. The application of artificial intelligence and Blockchain could collectively enhance the response and behavior of the robots.

AUTONOMOUS VEHICLES (AV)

The two most cutting-edge technologies come together, and an artificially intelligent blockchain simplifies and streamlines the learning process of autonomous, driverless, self-learning cars using reinforcement learning and then imparts the learned information.

The car learns from its experience. Cars connected to a shared public ledger can share their knowledge so that all the vehicles possessing that shared ledger can determine when to stop from the experience of one single car, thereby eliminating the cumbersome task of training each car separately. This collective learning can be carried out using Blockchain Technology.

Together, technologies widen the spectrum of opportunities. Similarly, the Blockchain developers and AI programmers at Logic Simplified augment the path of opportunities for businesses to grow and thrive in various industries like Tourism, Education, Finance, Manufacturing, Retail, Customer Service, Gaming, Security, Energy, Logistics and Transport. You name the industry and we have it covered. For any query get in touch with us or email at enquiry@logicsimplified.com