The Convergence of Blockchain & AI — The Shaping of a Whole New Technological Reality!

04 Jul 2023

This decade has promptly witnessed the flourishing of two indispensable technological forces; each having its merit & backed by its successful applications and fan following.

It’s like Star Wars finally becoming a reality, at least in its nascent senses. Well, you don’t need an introduction to these two technologies, namely, Blockchain & Artificial Intelligence.

With tech giants such as IBM, Microsoft, and Tesla pumping their funds into diverse aspects of these two technologies, it’s only evident how circumstantial they are to the future of business, social, & economic behaviour.

Individually, both AI & Blockchain are helping solve a lot of problems. What happens when you converge the two, solder them so closely that you obtain a new unfathomable reality?

Well, then you have the Avengers. The ultimate legacy of technological innovation that musters paradigms shifts in every circumference of human thinking & discipline.

That’s what we’re going to consider discussing within the abstract of this blog. Let’s discover what happens when two penultimate technologies join hands to stem innovation.

The Fusion of Blockchain & Artificial Intelligence

Blockchain breathes to enforce trust between business parties or individuals when acting within digitized mediums. It’s a digital ledger of immutable & distributed data acting on permissionless protocols within decentralized institutions of data transfer.

On the other hand, Artificial Intelligence helps emulate the human mind when it comes to decision-making & effortless prediction. The computerized version of the human mind processes millions of bytes of data to draw patterns & make decisions.

Bitcoin & Ethereum are two of the popular blockchains that are being used by people worldwide for financial purposes. Companies such as IBM, Microsoft, DeBeers, etc used blockchain for various purposes, including supply chain & data encryption.

When considering the impetus that AI has created, what is more, satisfying than quoting ChatGPT? The natural language processing model that works on deep learning principles has scripted a wave amongst businesses, individuals, & all sorts of contemporaries.

The fusion or convergence of these two technologies results in one word, secure automation. Businesses can rely on blockchain for data security/encryption purposes while they can deploy AI for automating regular tasks & streamlining operations.

AI-driven smart contracts can solve a variety of automation purposes & identify fraudulent behaviour. Every major industry & business model gain from the merits of the convergence of AI & blockchain. The health, finance & supply chain industries have seen the great potential that these two technologies have brought to the surface.

Prevalent Real World Applications Of The Convergence Of AI & Blockchain

It’s time we take a look at the top 5 real-world applications that have sprung forth from the convergence of AI & blockchain. The game changer lies in the sustained partnership of the two. So let’s dive into the applications.

1. Financial Services

The world of decentralized finance or DeFi has paved the way for non-traditional users to partake in financial transactions built on blockchain systems. As seemingly as blockchain provides a space for financial transfer without an intermediary, chances for fraudulent DeFi activity are high. By deploying AI-based algorithms to evaluate the legitimacy of a decentralized financial transfer, frauds can be eliminated.

Predictive analytics can be used to garner insights on DeFi exchange trends & help users make decisions with clarity. While trading becomes safe & secure via DeFi apps, they can be automated via AI-based algorithms.

2. Supply Chain

One of the more profitable ventures that the convergence of AI & Blockchain has brought is in the field of supply chain management. When a decentralized blockchain application stores & encrypts every data concerning the movement of products within the supply chain mechanism, AI-encoded smart contracts help in automating processes.

Based on predetermined conditions, AI-based smart contracts validate the authenticity of a particular product & regulate its transfer through the chain. This enables the real-time tracking of goods via timestamps & helps bring transparency.

3. Healthcare

The medical industry was constantly witnessing the stealth of sensitive information of patients & other data. With blockchain platforms ensuring tamper-proof medical records, now there were very few means for third parties to attempt stealth or alter patient data. Artificial Intelligence is being used in sync with blockchain-based healthcare applications today as it allows for identifying & deciphering health patterns.

Results from PET scans and other types of imaging are now being decoded by AI-based algorithms for detailed analysis & stored in blockchain applications to ensure data safety. Treatment plans are also automatically prescribed & calibrated according to specific symptoms and recorded in the medical files.

4. Cybersecurity

When you’ve got the barbed fences for safety purposes, a radar will ensure there’s no way fraudulent activity or theft goes undetected. Well, the blockchain is the barbed fence & artificial intelligence is the radar in the above abstract. The field of cybersecurity has been blessed by the arrival of blockchain.

The distributed digital ledgers in blockchain systems ensure the complete immutability of data & enforced transparency. Security & data encryption is enhanced by the involvement of artificial intelligence in the same. AI-based algorithms study cases of past attacks & data breaches to identify fraudulent behaviour and prevent any form of data manipulation.

5. Media & Communications

Fake news, false propaganda, rumours, etc … the list can be unending. People don’t have access to real news these days. However, the convergence of Blockchain & AI looks to settle the matter for the best. News feeds sourced in decentralized applications are validated by AI-based algorithms & credibility is ensured before it’s made available to the public.

Blackbird.AI, a media organization based out of San Francisco, California, deploys the fusion of the two technologies to regulate authentic content for their news readers.

The Future Looks Bright!

The massive investments pooled by several companies worldwide in the quest to automate business processes & secure data transactions envision a bright future for the convergence of AI and Blockchain. There’ll be an upscale in the way businesses operate & newer business models will rise out of the blue as a result of the convergence.

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