While computer sciences are becoming more dependent on public opinion and ‘wow’ factors, buzzword innovations like AI and Blockchain are being integrated, allowing these technologies to gain traction among the masses. Thankfully, the desired outcome of these changes has been achieved and so now, it is almost impossible to discuss any new innovations in coding without mentioning one of these words.
The essence of AI
Artificial Intelligence sounds great, with a slight Sci-Fi tinge to it, but what does it mean? John McCarthy offers the following definition: “It is the science and engineering of making intelligent machines, especially intelligent computer programs. It is related to the similar task of using computers to understand human intelligence, but AI does not have to confine itself to methods that are biologically observable.”
Simply put, Artificial Intelligence is a combination of computer science and data analysis, allowing for the development of complex algorithms that can solve problems unassisted.
It’s easy enough to guess at the definition and application of Artificial Intelligence, but what can we glean from the term ”blockchain”? Well, when a transaction involving an asset occurs, it is recorded as a “block” of data.
These data blocks can create a record for any information we choose: who, what, when, where, and so on. Every time an asset goes through a new transaction, a new block is created that is linked to the previous and subsequent data register, forming a “chain” of transactional history.
Thus, an immutable chain of historical data is captured, forever cementing the transaction’s date and location.
The security of the blockchain is codependent on the amount of data blocks. The more irreversible data blocks there are, the harder it is to tamper with them, thus making it immutable. Thanks to this system, a database that you and everyone can trust has come into being.
How do these two come together?
The symbiosis of AI and Blockchain is, more often than not, commensal. Commensal symbiosis involves the gain of one party and the indifference of another. Either the AI utilizes the safe and dependable data of the blockchain to solve complex problems involving data analysis and statistics, or the data within the blockchain is supplied by AI, allowing for an automated and reliable stream of transactions
Either way, both have innate value – AI is based on probabilities and uses algorithms to try and guess reality, while Blockchain is deterministic and records reality instead.
In this way, combining the qualities of Blockchain and AI offers:
Data stored in a blockchain is both encrypted and immutable, which is how personal information like medical records, purchase history and sensitive documentation can be safely cached for AI analysis.
Artificial Intelligence will also help detect system breaches and possible information leaks. Personal data such as cookies can also be stored in a decentralized blockchain and sold for profit, rather than being harvested from you for free by the largest corporations.
If a blockchain is implemented to track the decisions made by AI, we can make the computer’s data processing more transparent. Each decision would be stored in a data block and would be available for analysis. Thus, when Artificial Intelligence’s computation comes to light, the public’s trust will be much easier to gain.
The most valuable benefit of implementing a business model derived by AI and Blockchain is a massive reduction in wasted time and energy. AI can keep track of all time-sensitive variables, such as the execution of a smart contract, the expiration date of products and stock purchases that are dependent on preset price thresholds. It can also recommend shipping routes and methods, when given the necessary data.
“The Symbiosis of AI and Blockchain technology will be a key factor in whether your company will float or sink in the coming years. With the coming of a new age in digitization, even small enterprises will be able to offer stiff competition if they adopt this business modeling.” – Anton Dziatkovskii, CEO of Platinum Fund.
Over the next decade, the convergence of AI and Blockchain is sure to be implemented in traditional business models as well as modern startups. Even in this day and age, we can see changes in industries, thanks to these technologies.
A list of all possible implementations of AI symbioses would be infinite, but let’s take a look at some industries that could make good use of this tech.
When doctors are swamped with patients and datasets for each one, treatment options can sometimes fall under the radar. This is where an AI/Blockchain system can really help, by analyzing a patient’s medical history and providing possible treatment plans along with allergens that should be avoided. Why would a doctor or a nurse need to act as a detective and investigate genetic patterns when AI can just supply all relevant information in the blink of an eye?
In the pharmaceutical industry, drugs can be tried and tested simultaneously, without the possibility of mixing data sheets, wasting time on logging data from clinical trials, and patients’ reactions to a drug would be reliably traceable. Automating the process of signing up for trial participation and managing consent would lead to a streamlined system, with no need for paper trails.
Transport and storage are greatly dependent on data analysis for solving inefficiencies. By involving AI planning, more efficient routes can be calculated using the data it gathers. More effective storage methods and proper expiration management could help reduce waste and eliminate exposure to bad storage conditions. Keeping track of massive inventories can be eased with the use of sensors and AI.
One example of a company that uses Blockchain for its logistics is Re | Source, an associate of Tesla that ensures the raw materials used in electric car batteries are sustainably sourced. It does so by tracking transportation carbon footprints and logging them on the blockchain. This data is then used to reconfigure its transportation plans and to keep CO2 emissions as low as possible.
A great example of asset tokenization is the German startup called XAIN, a partner of Porsche. It allows vehicle owners to grant temporary access to their cars and to store the relevant data securely. The system also predicts maintenance needs, decentralizes autonomous driving, and records traffic data.
Confirmation of symbiosis
Full-scale implementation of Blockchain and AI convergence could completely change the way our world operates.
”Any current technology that involves even a sensor can make use of this business modeling. With the expansion of all industries comes the need to micromanage an insurmountable amount of variables, a task that has become easy to deal with, thanks to this technology.” – Uladzimir Hryneuski, FinTech specialist.
These technologies have been around for years, so why is progress so slow? Limited scalability and inefficiencies were the main culprits during the last few decades but these factors are no longer of concern, thanks to initiatives such as EOS that can compete with modern-day transaction systems.
However, some problems remain unaddressed, such as the General Data Protection Regulation’s right for data to be forgotten. With all these benefits on the line though, it is almost certain that blockchain technology will adapt to address these shortcomings.