How are Blockchain and Artificial Intelligence related?
Artificial intelligence was used initially to monitor and analyze activities occurring on the blockchain network in real-time. Thanks to this, patterns have been established, and specific threats have been discovered, resulting in a much faster and more effective response to security breaches that endangers both the operators and the communities that are part of the network. As a result, some companies have taken a step forward and decided to enable better management of decentralized networks and artificial intelligence.
Another function in which artificial intelligence can also be employed is detecting theft or fraud attempts, analyzing and identifying anomalies and pattern sin the behavior of transactions on the blockchain network. This would help provide a faster and more accurate response to any attempted crime and, in turn, protect users' interests. All this after one of the most famous platforms in the market, FTX, has gone bankrupt and left little positive news regarding the security of its users.
Finally, the blockchain can assist artificial intelligence in being more coherent and making it much easier to understand how algorithms make decisions, providing complete traceability of processes. Additionally, the blockchain enables the recording of data and its possible variables which can influence the decisions made by the algorithms.
Advantages of the Blockchain
We have already mentioned some of the advantages offered by blockchain technology. However, it is essential to note what other benefits this technology provides.
Lower costs and greater security: Blockchain technology enables secure person-to-person (P2P) transactions. Thanks to this, a third party's participation is no longer necessary to validate data. As a consequence, there is a significant reductionin costs.
Authenticity of the information: Due to its properties, once miners thoroughly verify the transaction data, this information cannot be falsified or erased, providing total security.
Anonymity: Once transactions are authenticated within the blockchain, only this validation is visible. Data from any other network used for another operation can never be viewed, thus maintaining the anonymity of all users.
Speed: Since Blockchain technology is fully decentralized, there is no need for a third party to verify and verify the transaction. The information contains open code that allows verification to be instantaneous and unbreakable.
Impact of Artificial Intelligence on Society
Implementing tools such as artificial intelligence in the blockchain world can represent a significant technological step forward in task automation. This would give the possibility to think about what needs to be done rather than the process itself, enabling the definition of solid architectures and reinforcin gsecurity while an assisted system performs repetitive tasks.
However, we must remember the problems that could develop thanks to artificial intelligence. On the one hand, it could lead in the future to amarket polarization in which some jobs created and developed by humans are replaced by technology. In addition, this could cause people to lose their jobs since artificial intelligence could perform these activities in less time and at a lower cost.
Moreover, there may be concerns about the security and privacy of information since this system would have access to sensitive data of great value to people.
However, that doesn't mean that artificial intelligence won't become a valuable tool for blockchain technology and the cybersecurity sector. It can offer an excellent opportunity to improve development efficiency.
Head-to-Head. Blockchain vs. Artificial Intelligence
Artificial intelligence and blockchain technology have a promising future in the coming years, and both are here to stay and revolutionize technology. However, these technologies have their differences and issues when compared. For example, one of the most striking problems of blockchain is security. Artificial intelligence, on the other hand, has reliability issues.
AI-Blockchain and Its Future Applications
The integration of artificial intelligence and blockchain technology has been successful in several sectors, enabling the creation and organization of many databases and strengthening security protocols. It's not just about looking to the future but also about which companies already apply artificial intelligence with blockchain technology. For this reason, we will discuss some cases we find today.
Gaba is a Spanish company dedicated to the energy sector. Since 2022 it has decided to use artificial intelligence with blockchain technology to give visibility to its customers' consumption and find ways for them to consume less energy. In this way, they want to take advantage of these new technologies to promote savings and environmental awareness.
Another example we can take is Nokia. The company launched Nokia Data Marketplace, a service that streamlines and facilitates the exchange of data and AI models, helping digital transformation and data monetization for companies.
Recently, the company CryptoGPT announced raising $10 million to promote its infrastructure with artificial intelligence and blockchain.
The company promotes a blockchain environment to manage, own, monetize, and use data through artificial intelligence. One of its goals is to facilitate the process of creating decentralized applications and using the tools available with AI.
As well as these companies, many more are already in the initiative to employ blockchain technology with artificial intelligence for process optimization.
Now, we present the sectors where the impact of these two technologies working together will be most significant.
Data Networks
Large projects require significant data transactions. In the case of traditional projects, data transactions need to be analyzed and monitored by a central system. As a result, the process does not turn out to be as efficient as it could happen if AI and blockchain are incorporated.
Data networks that are distributed break away from the centralized system approach. The exchange of information from several projects can be much faster and cheaper at the same time.
Financial Transactions
Blockchain tokens can be used in financial transfers. Furthermore, many companies in the financial sector are considering and analyzing blockchain technologies to implement them internally and become much more efficienti n all their processes. Finally, it is essential to mention that artificial intelligence is already part of the stock market among other markets, which allows us to believe that integrating these two technologies into the finance sector can generate positive results.
Health Sector
One sector that transfers the most data and requires privacy is the healthcare sector. Unfortunately, the healthcare sector is more exposed to cyber-attacks, and sensitive patient information is at risk of being stolen.
Blockchain technology could be used to ensure that the data sent or received is entirely private. Furthermore, on the part of artificial intelligence, it can help to improve security weaknesses and strengthen the system against any cyber-attack.
Cryptocurrency sector
Several trading platform shave decided to get involved with artificial intelligence and blockchain. Here are some of them.
Blocktrace
The company provides specialized blockchain analytics and forensics services bolstered by Ai. Its AI chatbot is built to streamline blockchain transaction processes. In addition, Blocktrace aims to use artificial intelligence to make the blockchain analysis process much faster, allowing it to analyze trends and anomalies quickly.
SingularityNET
It is a decentralized AI marketplace that uses blockchain technology to create a platform that allows AI developers to share and, at the same time, be able to monetize algorithms. It also enables the development of decentralized applications promoted by AI and can be used in different sectors such as health,transportation, and finance.
Conclusion
Technology evolves daily, so you must be part of the Web 3.0 ecosystem. If you want to design, develop and launch your project in the ecosystem, do not hesitate to contact Rather Labs. You will find everything you need here.
We are a team passionate about creating projects that have an impact on the ecosystem and with an excellent staff willing to help you be as successful as possible.
Once again, we reiterate that if you are interested in Web 3.0, blockchain technology, or even NFTs, Rather Labs will always be at your disposal.
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