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Benefits of Combining AI and Blockchain

The modern business world is constantly improving, new innovative technologies appear that allows solving a number of different problems. The most popular and good-known ones are Blockchain and AI. But what happens if we combine these two technologies together? Will this tandem work successfully?

A few words about blockchain and artificial intelligence

Initially, blockchain was developed to simplify transactions using cryptocurrencies, but now it is an incredibly popular database that can be used in almost all areas of activity. All personal information is stored here in blocks in chronological order, it is impossible to change data within the system, it has almost perfect protection from intruders. All data is completely encrypted, and a limited number of people have the code to unravel it.

Artificial intelligence is a technology that the best minds of humanity have been working on for the past several decades. With its help, we can shift some of the responsibilities to machines, which simplifies the work as much as possible and allows us to switch to more important tasks.

Connecting AI and blockchain are a great decision for almost any business, you can create an error-free algorithm that will optimize all work processes, avoid information leakage, and improve customer service.

5 main advantages of using technologies together

Many researchers highlight the main advantages of using blockchain and artificial intelligence:

  1. Increased security;
  2. Improving communication between the human mind and artificial intelligence;
  3. Creation of a common database and simplification of work with it;
  4. Optimization of power consumption;
  5. Improving smart contracts.

Increased security

If you want to improve the security of your company's data, blockchain AI comes to the rescue. Blockchain is a unique technology that assumes that each data is stored in a separate chain, all of them are interconnected using unique hosts. As soon as a data breach is attempted, these connections are destroyed.

In addition, blockchain artificial intelligence does not allow data to be corrected (even by the person who created it). This prevents fraud at all levels.

If your company uses artificial intelligence, then you can create conditions under which only it will receive data to solve its problems. This will prevent the transfer of information to third parties and prevent problems due to the human factor. The probability of error is reduced to zero.

It is worth noting that the better the protection, the more specialists work to crack it. As a result, technologies have appeared that, in some measure, can conduct blockchain. Artificial intelligence tracks such attacks and prevents them. This makes the protection even more reliable.

Also, artificial intelligence can independently eliminate possible errors in the blockchain system without involving specialists. This allows you to simplify the work with the system and reduce the cost of its maintenance. It takes several times less time to train a machine than it does for a person. As a result, more and more companies are ready to hire not people, but smart computers.

A step towards understanding artificial intelligence

Many people do not use artificial intelligence and blockchain because they do not understand the mechanisms by which they work. Despite the fact that these two technologies are among the most innovative in the world, the principle of their operation is quite simple: machine learning and blockchain set different rules that the program will follow.

For example, when Google bots are taught to distinguish between good and bad sites, people manually select the services they like and dislike. After that, they provide this information to bots, and they, when analyzing, compare the site with the examples that people have provided them. This means that it is the person who barks all the algorithms that determine the operating conditions of the bot.

Blockchain machine learning makes it more transparent and understandable. It allows you to track all decisions (from the most important to the simplest) that were made by artificial intelligence. In the future, you can adjust the basic mechanisms and establish new rules.

Simplifies access to a shared database

Many structures try to use a common database to conduct business. For example, many banks use a common datum to verify the accuracy of information submitted by customers and credit history.

Using the information received, artificial intelligence makes a decision on issuing money, approving a loan, and issuing certificates. The blockchain, in turn, can provide complete security for all data.

A similar system can be built for almost any large corporation. Such a database can include information about one company, or about several at once.

Blockchain and machine learning will allow you to use even secret data and not be afraid that it will fall into third hands. This helps to shift some of the routine responsibilities to computer technology, and do something more important.

Optimization of energy consumption

Processing a large amount of data requires the use of equipment that consumes a huge amount of electricity. Google Corporation was able to use artificial intelligence blockchain to reduce electricity consumption energy by 40%.

According to some information, programmers during mining can consume the same amount of electricity per year as an entire state. Reducing consumption can not only make life easier for miners but also help improve the environment.

Improving smart contracts

For the first time, smart contracts were proposed not so long ago and today they do not function as well as we would like. Artificial intelligence can double-check all decisions made by smart contract technology, thus avoiding rash decisions.

Practice shows that smart contract technology has repeatedly succumbed to attacks from hackers and made decisions under the influence of external factors. AI blockchain allows you to track down hacker attacks and prevent them. This makes the system even more secure.

Where can a combination of artificial intelligence and blockchain be used?

It is believed that the combination of blockchain and artificial intelligence can be used in a wide variety of industries. If all of the above is a theory, then you can follow how this collaboration can be highly appreciated and implemented in real life.

Porsche became the first engineering company to use blockchain and artificial intelligence to create a car. Now the driver can connect to his car using a smartphone and record various data on the way. This will make it easier to track the location of the car, study the distance traveled, and much more.

Increasingly traders use a combination of AI and blockchain to create predictions for the stock market and conduct an audit. Such collaboration helps to reduce risks and make the work of an analyst much easier and more efficient.

As you can see, the full potential of this cooperation has not yet been explored, however, more and more companies are finding these 2 technologies incredibly effective for solving many problems.

Conclusion

Today, some advanced countries are trying to develop a smart city system that will be based on IoT, AI, and distributed ledgers. It has long been clear that the future lies behind artificial intelligence, but the blockchain can significantly simplify the work with this complex technology and accelerate its development as much as possible.

Since the development of these two technologies is fast enough, all the benefits of such collaboration can be seen in the near future.