Artificial Intelligence and Blockchain as a market is full of hype, with vendors, customers, and the social media talking about the limitless capabilities that these two technologies hold. Since Blockchain and Artificial Intelligence are two of the hottest technology trends right now, they still have highly different developing parties and applications working towards exploring their potential together.
As per the predictions made by PwC, by 2030, AI will add up to $15.7 trillion to the world economy. As a result, the global GDP will rise by 14%. According to Gartner’s predictions, the business value added by the Blockchain development companies will increase to $3.1 trillion by the same year.
By definition, a blockchain is a distributed, decentralized, immutable ledger used to store encrypted data. Decentralized and distributed means that the information that is stored across the network is in such a way that each endpoint has access to the data without requiring access to a central server. The network is also distributed because the transactions happen at each endpoint without requiring centralized coordination. Artificial Intelligence, on the other hand, is the engine or the “brain” that enables analytics and decision-making from the data collected.
There are multiple applications of AI and Blockchain combined in order to get the most advanced and powerful combination of both these technologies. Let’s have a look at them:
The Power Duo: AI and Blockchain
1. Enhanced Computing Power:
AI offers us the opportunity to move away from the traditional blockchain functionality, making it more reliable and intelligent by infusing an effective way to move away with encrypted data on a computer for which you’d need large amounts of processing power. The hashing algorithms used to mine Bitcoin blocks, for example, take a “brute force” approach. AI can automate it by a Machine Learning-based algorithm that can practically polish skills in real-time on feeding the appropriate training data.
2. Diverse Datasets Creation:
Unlike AI-Based projects, blockchain technology creates decentralized, transparent networks that can be accessed by anyone. Blockchain empowers multiple industries to create decentralization.
3. Minimized Energy Consumption:
Mining is an incredibly hard task that requires tons of energy to be completed. Since AI has already proven to be very efficient in optimizing energy consumption. Optimized results with relatively less energy consumption are what we expect with the collaboration of Artificial Intelligence and Blockchain technology.
Since we are well aware of the security features of the blockchain technology, its further layers and applications are not that secure. For instance, the DAO, Mt Gox, Bitfinex, etc. But magnificent advancements made by AI in the field of security have made it a fantastic companion of the blockchain technology in order to secure application deployment.
As per the report published by Deloitte, a total running cost associated with validating and sharing transactions on the blockchain is to be as much as $600 million a year. Intelligent systems powered with AI technology will be able to minimize the computing cost by taking informed decisions on the fly for the likelihood for specific nodes to be the first performing a certain task and giving other miners to shut down their efforts for the same resources by cutting down the cost.
Blockchain and AI are the two extreme sides of the technology spectrum: one focusing on centralized intelligence on a closed data platform, while the other promoting the decentralized application in an open data environment. However, if we find some way to identify the true potential of these two technologies combined, the tech world will witness a spur like never before.