Artificial intelligence (AI) is computational programming that is used to create automated functionality to perform human-like tasks.
However, blockchain and AI are two different technologies. But there is still a big connection between the two. Especially when AI in blockchain technology is integrated, the combination can help you create innovative business solutions.
So do you know what happens when AI is integrated with blockchain? In this article, we will discuss it.
Convergence of Blockchain and AI
Blockchain and artificial intelligence are high-level technologies. Blockchain is a distributed ledger and decanted technology. It records information in the form of blocks and allows only defined users to use the data. It provides better security and transparency because it shares information across the network when each block verifies the input with predefined conditions.
So how does AI help in blockchain?
Since AI gives a system the ability to perform automated tasks. There is huge scope for integrating AI in blockchain. AI in blockchain can be used in many different ways to create custom and complex functionalities.
For example, blockchain developers use AI algorithms in blockchain development to build robust security protocols. AI is also used in tracking and collecting important data in the blockchain application that helps stakeholders and business owners make AI-based decisions. Therefore, the use of artificial intelligence in blockchain has increased significantly in recent years.
Now, let's see in what
Different ways AI is integrated with blockchain
Smart computing power
If you are a blockchain developer then you must be aware of how a large amount of processing is required when data encryption is performed. This is because of hashing algorithms that are utilized for mining Bitcoin blocks.
AI here makes it easier for blockchain developers to reduce the efforts in mining. By implementing AI in blockchain, developers can create intelligent algorithms that speed up the processing power of blockchain applications. Top fintech app development company even use AI and blockchain together to build advanced fintech solutions due to their smart computing powering.
Create diverse data sets
AI is a centralized system. Whereas, blockchain is fully decentralized. While blockchain is a ledger technology that empowers cryptocurrency. Enterprises use blockchain in various use cases to handle large and diverse data sets. So it becomes a complex task for blockchain developers to build a convenient functionality that organizes large datasets efficiently.
In this case, AI helps blockchain to create a smarter decentralized network that can host and handle large data sets. This happens due to the implementation of AI-based algorithms. It reduces human effort and enables the system to execute the process intelligently. But since it is quite a complex programming process you will need the best blockchain developers to build this functionality in your blockchain application.
Data protection
Blockchain is a powerful technology. It is because it records data in blocks and executes operations when each block verifies all the predefined conditions. Therefore, businesses use blockchain technology to build high-end security protocols in various industrial applications.
And when it is used with artificial intelligence its power gets enhanced. AI and blockchain allow the development of highly secured databases that are fully protected from any kind of data manipulation or external threat.
The combined power of blockchain and AI allows industries to create high-level identification and verification processes. Therefore, many industries and companies use AI in blockchain to build robust security protocols to protect sensitive data and digital assets.
AI-based decision making
AI has great abilities to perform different actions. It uses natural learning processes and smart algorithms to create an intelligent system. And this unique ability of AI helps blockchain to make smart decisions.
By implementing AI algorithms in blockchain businesses can collect plenty of data that could assist them in making well-informed business decisions. With the appropriate AI and blockchain programming, businesses can develop smart data entry and collection techniques to find useful data insights. As a result, AI can help businesses in improving and create better business strategies.
Real-life examples of the integration of AI in blockchain
Microsoft is currently researching and working on finding ways to collaboratively enhance machine learning models which are hosted on public blockchains.
They are attempting to develop a decentralized and collaborative AI system with blockchain. With this innovative system, people can run advanced machine learning or AI models on regular devices and mobile apps. This will also enable the AI community to train their AI models and build datasets on public blockchain.
The best part of this Decentralized & Collaborative AI on the Blockchain is that it will enable people to use AI and ML models for free for developing solutions for web and mobile apps mixed with blockchain and AI.
Another real-life example is FINALIZE which is a fintech software platform. This platform utilizes blockchain and machine learning to create applications for improving civil infrastructure,
It allows businesses to automate and increase the speed of construction industry workflow.
The best part of this platform is that it uses Ai and blockchain-based algorithms that help companies in making crucial processes easier and maximize ROI.
To Wrap Up
The combination of blockchain and AI is a powerful integration. However, blockchain and AI are different technologies. But when AI's capabilities are properly implemented in blockchain it could help businesses to build high-level and innovative business solutions.
But since the use of AI in blockchain is in the evolution stage. You will need assistance from a highly expert company that could help you build a successful business solution with blockchain and AI.
And if you are looking for professional and reliable assistance then collaborate with MobileCoderz. They are the industry's leading blockchain development company that has worked with global enterprises and companies to build high-end software solutions with AI and Blockchain.
