It’s been a decade since blockchain is taking over the world driving various industries crazy. The new technology has already transformed many sectors that include, Finance, Real Estate, Healthcare, Retail, Supply chain and whatnot. Blockchain was introduced with the first-ever cryptocurrency, Bitcoin and then within a few years, it took the attention of Entrepreneurs all over the world. Many Big firms have already started accepting blockchain as their core technology That includes Amazon And Bitfury.
Now if we talk about AI, you are no alien to the term. We now have AI on our mobile phones and pretty much everyone is aware of this new technology now. But, it’s not only the mobile industry that has adapted this technology but many others that again includes health care, finance, retail, travel etc.
In this article, we are going to talk about these two technologies and how the combination of Blockchain and AI can do wonders to the world. But before that let’s learn about what these technologies are, how they work and their use cases.
What Is Blockchain Technology
Also known as distributed ledger technology, blockchain can be defined as a record book that can record all data while maintaining its security, transparency as well as decentralization. All the data is stored in the form of chains of blocks that are not controlled by any third party.
A good example of how Blockchain works is to see how Google Docs or sheets work. Most of you must have used Google docs already and even if not you must be well aware of it. The beauty of Google Docs is that when you create a document or a sheet, write something on it and share it, it is shared in real-time. That means, unlike words where multiple versions of the documents are created when you share it with people, the docs sheet or document is shared and edited in real-time. If the person you shared the document with, edit your document, changes would be updated in the original document and there would be no extra copies created. That’s how exactly blockchain work, everything there can be edited in real-time where the new modifications are transparent to everyone.
However, you must remember Google docs doesn’t use blockchain. The distributed ledger or say docs is transparent and secure but it is not decentralized. That being said, everything there is maintained and controlled by Google. You are relying on a third party for the maintenance and security of your document whereas, in the blockchain, you don’t need to trust any third party or central authority.
What Is Artificial Intelligence Technology
Now, on the other hand, you can think of Artificial intelligence as the mimicry of human intelligence or mind. AI enables decision making in machines by using data stored in its memory. AI machines are programmed to analyze like humans and accomplish set goals. Siri and Alexa are good examples of AI.
AI works according to the data stored in it and it is different from robotic automation. AI applications can perform regular tasks like setting up alarms, reminding you of taking medicines, giving you daily news about the things you are interested in and many more without fatigue. Although, at first you will need to set up AI to do all these things for you.
Combination Blockchain and AI
Now that you know how both the technologies work, let’s talk about what the combination of blockchain and AI will do. Blockchain is good at keeping data while AI is good at using them to perform tasks just like humans. If both technologies would be combined, not only it will enhance the working of AI but also blockchain’s underlying architecture. Blockchain can clearly make AI more reliable and logical. Some of the advantages of AI and Blockchain convergence are given below:
- Improved decision making
- High reliability and accessibility
- Better management of smart contracts
- Secure and Immutable personalized experience
Impact of AI and Blockchain Combination on Industries
The combination of Blockchain and AI can do wonders in industries like Healthcare, Supply Chain, Retail and Finance. Let’s know about the impact of these technologies on various industries individually.
Although both AI and blockchain are working to revolutionize the services in Healthcare independently. not only for the patients but for healthcare service providers. But if both the technologies have to work together, it would be the next level of everything. While blockchain will help to secure medical data against theft or cyberattacks, AI will help the patients and service providers get a personalized experience.
AI is already trying its best to improve the retail business with all its capabilities and combining it with blockchain will only double its impact. Retailers will now not only be able to personalize their experience but also better manage the customer’s data as well as everything in the process. Moreover, it will also secure payment processes by reducing the risk of frauds.
The combination of blockchain and AI will help predict human emotions and what needs to be done next while still building trust in the industry. Both the technologies will take the Finance sector to the next level in terms of performance as well as automation.
The combination of Blockchain and AI is largely undiscovered but it seems like both the technologies somehow belong together. While blockchain is still in its initial days and attracting more businesses day by day, AI is there for years and has earned the attention of the mainstream. What AI needs is data in order to work properly and as accurate as possible which can be dealt with blockchain.
That’s all for now! In order to better understand how both the technologies will work together, you might want to know about blockchain in detail. Learn about the working, use cases and advantages of blockchain through our guides and how it can be the next big thing in the world. You can also learn more about cryptocurrencies as blockchain is their base technology.