AI and blockchain are two of the hottest technologies of the 21st century. Both are disrupting many industries today, changing the way people work, play, and create value in a highly digital world while introducing new and transformative business models.
We’ll look at each technology separately and then explore the possibilities and impact of their convergence.
AI and its advantages
Artificial intelligence “uses computers, data, and sometimes machines to mimic the problem-solving and decision-making capabilities of the human mind,” according to AI pioneer IBM. It’s a computer program trying to think, speak, or act like you do. The most common examples of AI-powered platforms today, for instance, are best known for making high-quality writeups and amazing computer-generated artwork.
Before the advent of Large Language Models (LLM) like ChatGPT and visualization tools like Stable Diffusion, AI came in the form of computers like IBM’s own chess grandmaster-defeating Deep Blue and the earliest chatbots. AI is now integrated into modern life, aiding students in writing papers, functioning as virtual assistants, powering autonomous vehicles, and quickly processing vast data sets for diverse stakeholders.
According to Forbes, some of AI’s best-known advantages include:
- Automates repetitive tasks and processes. AI can easily and rapidly do repetitive tasks, freeing humans up for more high-value work.
- Rapid iteration of ideas. AI can quickly evolve ideas and concepts, providing several responses to a single user prompt.
- Smooth handling of Big Data. AI allows data scientists to process raw data more precisely and quickly, helping them see patterns more reliably in less time.
Blockchain and its advantages
The blockchain is the transaction database – or a digital ledger – of the Bitcoin network. It is an integral component of the peer-to-peer electronic cash system created by Satoshi Nakamoto, acting as the immutable record facilitating fast, secure, cheap, and massively scalable digital transactions.
It’s easy to confuse blockchain with speculative tokens or NFTs. However, when we mention “blockchain,” we refer to the network responsible for processing transactions and storing data.
Blockchain today is best known for its use in fintech and banking. However, the technology can be utilized in many industries, such as helping improve item tracking in a logistics chain, certifying food and environmental data sources, enabling better healthcare information management, and increasing transparency within law enforcement.
According to IBM, here are some of blockchain’s most potent benefits:
- Ownership of data: your information is owned by you. Determining who has access to it and how it can be used is solely up to you.
- Fast and cheap transactions: blockchain’s scalability allows it to handle millions of transactions in seconds, leading to faster processing and reducing costs to a fraction of a US Cent.
- Security and transparency: because all transactions are on a publicly viewable ledger, blockchains offer unparalleled transparency, and Satoshi’s design ensures robust security for the network and its users.
When AI and blockchain converge
So, what happens when AI and blockchain come together? It creates a powerful combination greater than the sum of its parts, as one’s capabilities complement the other in a near-perfect match.
One benefit is that the issue of data privacy and even intellectual property ownership is addressed. LLMs and AI image-processing tools are criticized for producing work at a human level by using the work of real people without their consent. Additionally, the training data for these AIs often includes personal information and content used without the knowledge or permission of its owners.
With blockchain, such information – articles, illustrations, even simple social media posts – cannot be used without the consent of their owners. If an AI company wishes to use your Tumblr posts or Artstation uploads to train its AI, it must pay you for the right to use your work or at least ask your permission first. This also holds true for your Internet browsing and online shopping histories.
This is possible because all transactions on the blockchain are immutably recorded. You will always see if anyone accesses your data and content. If you have a smart contract to set the rules on your data, then companies can only use your information if they accept your terms. For example, a research company wanting to predict consumer video streaming behavior must pay you to access your viewing habits on Netflix for their study.
One of the biggest issues regarding digital transactions is the siloing of data. A good example is how difficult it is to share your healthcare data between providers. With blockchain’s ownership and protection of your data enabled, AI healthcare agents only need your permission to gain access or meet the terms of the smart contract governing the use of your data, like paying a small fee.
Blockchain’s immutability and public nature as a record of transactions also enable AI tools to quickly search for relevant information while being assured of its trustworthiness. Everything from the origin of your coffee grounds to your educational history can be quickly accessed by an AI assistant, and the requester can be sure of its truth because you can track every transaction on the blockchain.
Here are some industries that can significantly benefit from close collaboration between AI and blockchain:
- Supply Chain Management: source authentication and transit tracking.
- Law enforcement: increased transparency leading to higher public trust.
- Healthcare: removal of silo restrictions between providers and better patient monitoring.
- EGS: enhanced verification of claims and more accurate documentation of data sources.
Moving forward
This is just the tip of the iceberg when it comes to the future of AI and blockchain. You can go deeper into the topic, starting with online courses that further explain what these technologies can do. You might also want to attend conferences so you can see firsthand the fusion of AI and blockchain from companies already exploring it and understand how they work in a practical and business sense. For example, joining a blockchain conference can give you valuable insights into real-world applications and networking opportunities with industry leaders. You can also check out sites for the latest news and an in-depth look at what blockchain and AI can do, like this primer for starters.
